Corporate Valuation is a “capstone” finance course that draws on core corporate finance principles, theories and methods previously studied. Students will work in teams to value an existing company, present their analysis and investment recommendation. The techniques covered include discounted cash flow, multiple-based and asset-based valuations. Because of the richness of the approach, most of the focus will be on discounted cash flow analysis. While this entails more work and requires significant student initiative, this type of ‘learning by doing’ should provide a lasting framework.

Learning Outcomes

Upon successful completion, students will have the knowledge and skills to:

1. Demonstrate an in depth knowledge of valuation essentials;
2. Implement and communicate techniques used to place a value on a company’s operations; and
3. Use valuation tools to plan and monitor key corporate decisions.

Research-Led Teaching

By working through corporate valuation cases, students will learn and exercise the necessary skills for financial industry based research. With the distinct feature of learning by doing, this course will train students in critical analysis of real-world problems in corporate financial decisions, and evaluation and communication of valuation results.

Examination Material or equipment

Students are required to ensure that the technology needed for the online quiz and final exam is reliable. A backup computer and/or internet would be a good idea.

Required Resources

Prescribed textbook:

Koller, T., Goedhart, M. and Wessels, D., Valuation: Measuring and Managing the Value of Companies, 6 Edition, Mc Kinsey & Co (John Wiley and Sons), 2015. [denoted ‘KGW’]

Students are expected to have access to a copy of the prescribed book for the duration of the semester. The book can be purchased from the on campus bookshop, with a small number of copies also available for 2 hour loan in the reserve loan section of the Chifley Library. E-book version of the textbook is also available from ANU library website.

Recommended Resources

Other Reading

Damodaran A., Investment Valuation, 3rd Edition, University Edition (John Wiley and Sons), 2012.

Additional materials will be made available on Wattle.

Staff Feedback

Students will be given feedback in the following forms in this course:

• written comments
• verbal comments
• feedback to whole class, groups, individuals, focus group etc

Student Feedback

ANU is committed to the demonstration of educational excellence and regularly seeks feedback from students. Students are encouraged to offer feedback directly to their Course Convener or through their College and Course representatives (if applicable). The feedback given in these surveys is anonymous and provides the Colleges, University Education Committee and Academic Board with opportunities to recognise excellent teaching, and opportunities for improvement. The Surveys and Evaluation website provides more information on student surveys at ANU and reports on the feedback provided on ANU courses.

Other Information

Support for Students

The University offers a number of support services for students. Information on these is available online from http://students.anu.edu.au/studentlife/

Communication via Email

If I, or anyone in the School, College or University administration, need to contact you, we will do so via your offcial ANU student email address, which you need to check regularly. If

you have any questions for the teaching and course convenor make sure you email them using your ANU email address. Emails from personal email accounts will not be answered.

Announcements:

Students are expected to check the Wattle site for announcements about this course, e.g. changes to timetables or notifications of cancellations.

Assessment Requirements

Any student identified, either during the current semester or in retrospect, as having used ghost writing services will be investigated under the University’s Academic Misconduct

Rule.

Scaling:

Your final mark for the course will be based on the raw marks allocated for each of your assessment items. However, your final mark may not be the same number as produced by that formula, as marks may be scaled. Any scaling applied will preserve the rank order of raw marks (i.e. if your raw mark exceeds that of another student, then your scaled mark will exceed the scaled mark of that student), and may be either up or down.

Referencing Requirements

Referencing is essential to demonstrate that you have read thoroughly, and acknowledges the ideas and materials of other authors in your work. Students are required to apply the ‘Harvard Style’ of referencing in completing written work, where applicable.

Refer to the College referencing guide for further details (http://cbe.anu.edu.au/students/student-information/examinations-assessment/).

Class Schedule

Week/Session	Summary of Activities	Assessment
1	Course overview Valuation in context Readings: KGW Ch 1; Ch 2; Ch 3
2	Building a company model Readings: KGW Ch 9	Team formation and company selection
3	Forecasting and model integrity Readings: KGW Ch 6; Ch 10; Ch 11
4	Cost of capital Readings: KGW Ch 13
5	DCF valuation Readings: KGW Ch 8; Ch 12; Ch 14	Online quiz (via Wattle)
6	Multiple-based valuations Readings: KGW Ch 16; Ch 17
7	Asset-based valuations Readings: Damodaran Ch 19; Ch 25; KGW Ch 34
8	Incorporating growth potential Readings: KGW Ch 7; Ch 27
9	Sensitivity and scenario analysis Readings: Damodaran Ch 33; KGW Ch 15
10	The investment decision (forming a recommendation) Readings: KGW Ch 4; Ch 5	Assignment due
11	Special issues: Cross-border valuation, Valuing high growth firms, Evaluating management, WACC as a value-driver Readings: KGW Ch 23; Ch 29; Ch 32
12	Special issues: Evaluating management, WACC as a value-driver, cyclical companies Readings: KGW Ch32, Ch33, Ch34; Review and guidance for the final exam	There will be a final exam during the university examination period. More information and instructions regarding the exam will be provided no later than week 10 on Wattle.

Tutorial Registration

Tutorials will be available on campus, live through scheduled Zoom sessions and as pre-recorded videos. Information regarding enrolments for these options will be provided on Wattle no later than week one of the semester.

Assessment Summary

Assessment task	Value	Due Date	Return of assessment	Learning Outcomes
Online examination	10 %	22/03/2020	22/03/2020	1
Company valuation	30 %	10/05/2020	24/05/2020	1-3
Final Examination	60 %	02/06/2020	30/06/2020	1-3

* If the Due Date and Return of Assessment date are blank, see the Assessment Tab for specific Assessment Task details

Policies

ANU has educational policies, procedures and guidelines, which are designed to ensure that staff and students are aware of the University’s academic standards, and implement them. Students are expected to have read the Academic Misconduct Rule before the commencement of their course. Other key policies and guidelines include:

• Student Assessment (Coursework) Policy and Procedure
• Special Assessment Consideration Policy and General Information 
• Student Surveys and Evaluations
• Deferred Examinations
• Student Complaint Resolution Policy and Procedure

Assessment Requirements

The ANU is using Turnitin to enhance student citation and referencing techniques, and to assess assignment submissions as a component of the University's approach to managing Academic Integrity. For additional information regarding Turnitin please visit the ANU Online website. In rare cases where online submission using Turnitin software is not technically possible; or where not using Turnitin software has been justified by the Course Convener and approved by the Associate Dean (Education) on the basis of the teaching model being employed; students shall submit assessment online via ‘Wattle’ outside of Turnitin, or failing that in hard copy, or through a combination of submission methods as approved by the Associate Dean (Education). The submission method is detailed below.

Moderation of Assessment

Marks that are allocated during Semester are to be considered provisional until formalised by the College examiners meeting at the end of each Semester. If appropriate, some moderation of marks might be applied prior to final results being released.

Participation

Course content delivery will take the form of weekly live lectures (recorded and available via echo360 on Wattle) and weekly tutorials, delivered in hybrid format (on campus, live through scheduled Zoom sessions and as pre-recorded videos).

Examination(s)

Centrally scheduled examinations through Examinations, Graduations & Prizes will be timetabled prior to the examination period. Please check ANU Timetabling for further

information.

Any student identified, either during the current semester or in retrospect, as having used ghost writing services will be investigated under the University’s Academic Misconduct Rule.

Assessment Task 1

Online examination

Total weighting: 10%

It is a one-hour online exam conducted via Wattle and in a multiple-choice format. The quiz will be held in week 5 and available during the lecture hours from 13:00 to 14:00 on Mar 22, 2020. The feedback will be available upon the quiz completion. A mixture of theory and practical (numerical) questions will be asked. Students will need to review all material covered in lectures 1 to 4, inclusive, as well as the corresponding tutorial and textbook materials. The quiz is compulsory and non-redeemable.

Assessment Task 2

Company valuation

Total weighting: 30%

It is a group-based assignment. Team members (5-6 students in each group) will be allocated by the Lecturer in week 1 and 2.

Note: It is requested that any students intending to drop out of the course make their decision and inform the lecturer as soon as they can.

All students must adhere to the required social distancing requirements, e.g. using Zoom for meetings etc.

The assignment is compulsory and non-redeemable.

Objective:

Produce a company valuation report including DCF, multiple-based valuation for a listed Australian company, valuation analysis and investment recommendations. Each group register their own company on Wattle that should be different from others. As such, the earlier you sign-up your own company on Wattle, the better for your group. See “Assignment Guidelines” on Wattle, to be posted in week 2, for further details on assignments, including objectives, requirements, guidance and marking criteria.

What You Need To Submit

1. Company model (Excel file) – integrated financial accounts, forecasts, valuation, summary tables and charts

2. Analysis research report including valuation analysis and investment recommendations (Pdf file)

3. Use Turnitin for submission

4. All files submitted to be named as follows: FINM7044 - Group ## - Company name ##

Assessment Task 3

Final Examination

Total weighting: 60%

The final examination will be a Wattle-based online exam during the university examination period. This is an open book exam. Students will have 2-hour writing time and 15-minute reading time. A mixture of theory and practical (numerical) questions will be asked. Students are required to review all materials for the entire semester including lectures, tutorials and textbook.

Centrally scheduled examinations through Examinations, Graduations & Prizes will be timetabled prior to the examination period. Please check ANU Timetabling for further information.

Academic Integrity

Academic integrity is a core part of the ANU culture as a community of scholars. At its heart, academic integrity is about behaving ethically, committing to honest and responsible scholarly practice and upholding these values with respect and fairness.

The ANU commits to assisting all members of our community to understand how to engage in academic work in ways that are consistent with, and actively support academic integrity. The ANU expects staff and students to be familiar with the academic integrity principle and Academic Misconduct Rule, uphold high standards of academic integrity and act ethically and honestly, to ensure the quality and value of the qualification that you will graduate with.

The Academic Misconduct Rule is in place to promote academic integrity and manage academic misconduct. Very minor breaches of the academic integrity principle may result in a reduction of marks of up to 10% of the total marks available for the assessment. The ANU offers a number of online and in person services to assist students with their assignments, examinations, and other learning activities. Visit the Academic Skills website for more information about academic integrity, your responsibilities and for assistance with your assignments, writing skills and study.

Online Submission

You will be required to electronically sign a declaration as part of the submission of your assignment. Please keep a copy of the assignment for your records. Unless an exemption has been approved by the Associate Dean (Education) submission must be through Turnitin.

Hardcopy Submission

No hardcopy submission is required.

Late Submission

Late submission of assessment tasks is not accepted. If an assessment task is not submitted by the due date, a mark of 0 will be awarded.

Referencing Requirements

Accepted academic practice for referencing sources that you use in presentations can be found via the links on the Wattle site, under the file named “ANU and College Policies, Program Information, Student Support Services and Assessment”. Alternatively, you can seek help through the Students Learning Development website.

Returning Assignments

Feedback on the assignment will be returned via Wattle or email by the date as set out in the "Assessment" section.

Extensions and Penalties

Extensions and late submission of assessment pieces are covered by the Student Assessment (Coursework) Policy and Procedure. Extensions may be granted for assessment pieces that are not examinations or take-home examinations. If you need an extension, you must request an extension in writing on or before the due date. If you have documented and appropriate medical evidence that demonstrates you were not able to request an extension on or before the due date, you may be able to request it after the due date.

Resubmission of Assignments

No resubmission of assignment is accepted.

Privacy Notice

The ANU has made a number of third party, online, databases available for students to use. Use of each online database is conditional on student end users first agreeing to the database licensor’s terms of service and/or privacy policy. Students should read these carefully. In some cases student end users will be required to register an account with the database licensor and submit personal information, including their: first name; last name; ANU email address; and other information.
In cases where student end users are asked to submit ‘content’ to a database, such as an assignment or short answers, the database licensor may only use the student’s ‘content’ in accordance with the terms of service – including any (copyright) licence the student grants to the database licensor. Any personal information or content a student submits may be stored by the licensor, potentially offshore, and will be used to process the database service in accordance with the licensors terms of service and/or privacy policy.
If any student chooses not to agree to the database licensor’s terms of service or privacy policy, the student will not be able to access and use the database. In these circumstances students should contact their lecturer to enquire about alternative arrangements that are available.

Distribution of grades policy

Academic Quality Assurance Committee monitors the performance of students, including attrition, further study and employment rates and grade distribution, and College reports on quality assurance processes for assessment activities, including alignment with national and international disciplinary and interdisciplinary standards, as well as qualification type learning outcomes.

Since first semester 1994, ANU uses a grading scale for all courses. This grading scale is used by all academic areas of the University.

Support for students

The University offers students support through several different services. You may contact the services listed below directly or seek advice from your Course Convener, Student Administrators, or your College and Course representatives (if applicable).

• ANU Health, safety & wellbeing for medical services, counselling, mental health and spiritual support
• ANU Diversity and inclusion for students with a disability or ongoing or chronic illness
• ANU Dean of Students for confidential, impartial advice and help to resolve problems between students and the academic or administrative areas of the University
• ANU Academic Skills and Learning Centre supports you make your own decisions about how you learn and manage your workload.
• ANU Counselling Centre promotes, supports and enhances mental health and wellbeing within the University student community.
• ANUSA supports and represents undergraduate and ANU College students
• PARSA supports and represents postgraduate and research students