Corporate Valuation is a 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. Apply appropriate techniques for company valuation;
2. Apply theories and concepts learned in other finance courses; and
3. Effectively work in groups and discuss results of the activities undertaken in a team.

Research-Led Teaching

Students undertaking this course will be imparted with the necessary skills for industry-based research. This will include involving students in critical analysis of industry-based

problems such as valuation, capital budgeting and risk assessment.

Examination Material or equipment

The exams and quizzes are open book. 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

Students are expected to have access to a copy of the prescribed book for the duration of the semester. The ebook is available via ANU library.

Koller, T., Goedhart, M. and Wessels, D., Valuation: Measuring and Managing the Value of Companies, 6th Edition, University Edition, Mc Kinsey & Co (John Wiley and Sons), 2015.

[denoted ‘KGW’]

Library ebook link: Valuation, Mc Kinsey & Co, 6th Edition, University Edition

CFA Institute Code of Ethics and Standards of Professional Conduct

CFA Institute Standards of Practice Handbook (Standard V)

https://www.cfainstitute.org/en/ethics-standards/ethics/code-of-ethics-standards-of-conduct-guidance

Recommended Resources

Damodaran A., Investment Valuation, 3rd Edition, University Edition (John Wiley and Sons), 2012. [denoted ‘Damodaran’]

Library ebook link: Damodaran, Investment Valuation, 3rd Edition, University Edition

Harry Hartog on campus stocks this title.

Additional materials will be made available on Wattle, including supplementary course notes, selected analyst reports, CFA readings, example worksheets, and other relevant

items.

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). Feedback can also be provided to Course Conveners and teachers via the Student Experience of Learning & Teaching (SELT) feedback program. SELT surveys are confidential and also provide the Colleges and ANU Executive with opportunities to recognise excellent teaching, and opportunities for improvement.

Class Schedule

Week/Session	Summary of Activities	Assessment
1	Topic: Course overview & Valuation in context Activity: Lecture 1 (No workshop) Required student preparation: KGW Ch 1; Ch 2; Ch 3
2	Topic: DCF valuation Activity: Lecture 2, Workshop Required student preparation: KGW Ch 8; Ch 12; Ch 14
3	Topic: Building a company model & Reorganising the financial statements Activity: Lecture 3, Workshop Required student preparation: KGW Ch 9
4	Topic: Forecasting and model integrity Activity: Lecture 4, Workshop Required student preparation: KGW Ch 6, Ch 10, Ch 11
5	Topic: Cost of capital Activity: Lecture 5, Workshop Required student preparation: KGW Ch 13, Course Note 1	Quiz
6	Topic: Incorporating growth potential Activity: Lecture 6, Workshop Required student preparation: KGW Ch 7; Ch 27
7	Topic: Multiple-based valuations: • Price/Earnings ratios • Enterprise value • Others: cash flow multiples, dividend yield, price/sales. Activity: Lecture 7, Workshop Required student preparation: KGW Ch 16, Course Note 2 (pp 1-6)	Assignment 1 due
8	Topic: Asset-based valuations: • Price/Book • Sum-of-the-Parts • Takeover valuation Activity: Lecture 8, Workshop Required student preparation: Damodaran Ch 19; Ch 25, KGW Ch 17, Course Note 2 (pp 7-10)
9	Topic: Sensitivity and scenario analysis Activity: Lecture 9, Workshop Required student preparation: KGW Ch 15, Damodaran Ch 33,
10	Topic: Forming a recommendation Activity: Lecture 10, Workshop Required student preparation: KGW Ch 4; Ch 5
11	Topic: Special issues: • Cross-border valuation • Valuing high growth firms • Evaluating management • WACC as a value-driver Activity: Lecture 11, Workshop Required student preparation: KGW Ch 23; Ch 29; Ch 32, CFA Code of Ethics; Standard of Practice Handbook - Part V (pp 127-147)	Assignment 2 due
12	Topic: Review Activity: Lecture 12 Required student preparation: All previous materials

Tutorial Registration

Tutorials will be available on campus, live through scheduled Zoom sessions and as pre-recorded videos. Information regarding enrolments will be provided on Wattle during O-Week prior to the start of the semester. "ANU utilises MyTimetable to enable students to view the timetable for their enrolled courses, browse, then self-allocate to small teaching activities / tutorials so they can better plan their time. Find out more on the Timetable webpage (https://www.anu.edu.au/students/program-administration/timetabling).

Assessment Summary

Assessment task	Value	Due Date	Return of assessment	Learning Outcomes
Quiz - 30 mins duration	5 %	24/03/2023	24/03/2023	1
Assignment 1: Company model and DCF valuation	20 %	17/04/2023	01/05/2023	1, 2, 3
Assignment #2 The complete package: company model, DCF valuation, multiple and/or asset-based valuation and analyst report	25 %	19/05/2023	09/06/2023	1, 2, 3
Final Exam	50 %	01/06/2023	29/06/2023	1, 2, 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 Integrity Rule before the commencement of their course. Other key policies and guidelines include:

• Academic Integrity Policy and Procedure
• Student Assessment (Coursework) Policy and Procedure
• Special Assessment Consideration Guideline and General Information 
• Student Surveys and Evaluations
• Deferred Examinations
• Student Complaint Resolution Policy and Procedure
• Code of practice for teaching and learning

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 Academic Skills 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 in-person weekly lectures, workshops 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.

Assessment Task 1

Quiz - 30 mins duration

Date: 24 March 2023 (Online via Wattle)

Value or weighting: 5% (or 0% if the quiz is not attempted or redeemed)

This will be an online quiz conducted via Wattle, consisting of multiple choice questions only. The purpose of the quiz is to provide students with feedback on their understanding of the material. The questions will be of practical (numerical) and/or theory in nature and students will need to review and revise all material covered in lectures 1 to 4, inclusive, as well as the corresponding tutorial material. The quiz is optional and redeemable, and will be held on Friday Week 5. Results for the quiz will be available on Wattle, by Monday 27 March, 2023.

Assessment Task 2

Assignment 1: Company model and DCF valuation

Due Date: 17 April 2023

Value or weighting: 20%

The group assignment guidelines will be posted in Week 1. Students are asked to sign up for an assignment group on Wattle by Wednesday March 8th, Week 3. All groups must consist of 5 - 6 students. Any individuals not enrolled into a group and small groups of less than 5 members are to be allocated randomly by the lecturer by Friday March 10th. Each group is expected to build a DCF valuation model (Assignment #1) and multiple-based (asset-based) valuations (Assignment #2) for a listed Australian company; and submit the complete valuation portfolio in week 11 with an analyst research report that includes valuation analysis and investment recommendations (Assignment #2). Details on objectives, requirements, group formation, guidance and marking criteria will be outlined in the Assignment on wattle.

The workshop commences from Week 2 with themed discussions on the assignment. The week 2 workshop introduces the “KGW model” template, and offers general advice on modeling in Microsoft Excel. From week 3, guidance will be given on how to conduct analysis for your company, including discussing methods and addressing any common problems or matters raised by students. All students are expected to attend workshops in week 2 and 3. Starting week 4, at least one member from each team MUST attend, participate in the discussion and take notes, although all should attend with prepared questions. The workshop is used as the main forum seeking help for your assignment. The lecturer will NOT answer assignment related questions by email, unless it’s a fact-based question. A face-to-face conversation is a more effective way on this regard. You are welcome to talk to the lecturer in class, during lecture breaks or consultation time. The assignment will be submitted on Wattle using Group Assignment 1 Submission link.

All questions regarding the lectures and the assignment should be directed to the lecturer. Important: before coming to the lecturer’s consultations, make sure you have reviewed all lecture/tutorial/workshop materials and recordings. If you ask an assignment question that has been discussed in workshops you will be asked to listen to

the recordings. This policy is to improve the efficiency of using the lecturer’s time and give the students who do need face-to-face time with the lecturer a fair chance. The lecturer would very much appreciate your understanding and cooperation.

All questions regarding the tutorials should be directed to the tutors. All students must adhere to the required social distancing requirements.

Assessment Task 3

Assignment #2 The complete package: company model, DCF valuation, multiple and/or asset-based valuation and analyst report

Due Date: 19 May 2023

Value or weighting: 25% (or 30% if the quiz is not attempted or redeemed)

The group assignment guidelines will be posted in Week 1. Assignment #2 should be undertaken by the same group formed for Assignment #1. This assignment completes the valuation analysis by undertaking some appropriately selected multiple-based and/or asset-based valuation techniques. Feedback for Assignment #1 are expected to be provided to students well before the submission of Assignment #2. Any errors or areas that need improvement highlighted in the feedback are expected to be corrected or mitigated in the Final submission of the valuation portfolio. The assignment will be submitted on Wattle using Group Assignment 2 Submission link.

All questions regarding the tutorials should be directed to the tutors. All students must adhere to the required social distancing requirements.

Assessment Task 4

Final Exam

Due Date: to be centrally timetabled

Value or weighting: 50%

The final examination will be a Wattle-based online exam during the university examination period at the end of the semester. The final examination will have 2-hour writing time and 15-minute reading time (135 minutes in total) and cover the entire syllabus. It will be open book and all materials are permitted. A mixture of theoretical and practical (numerical) questions will be asked. The exam (to be completed individually) will be centrally timetabled and details of the final examination timetable will be made available on the ANU Timetabling website. Further details will be available in week 10.

Academic Integrity

Academic integrity is a core part of the ANU culture as a community of scholars. The University’s students are an integral part of that community. The academic integrity principle commits all students to engage in academic work in ways that are consistent with, and actively support, academic integrity, and to uphold this commitment by behaving honestly, responsibly and ethically, and with respect and fairness, in scholarly practice.

The University expects all staff and students to be familiar with the academic integrity principle, the Academic Integrity Rule 2021, the Policy: Student Academic Integrity and Procedure: Student Academic Integrity, and to uphold high standards of academic integrity to ensure the quality and value of our qualifications.

The Academic Integrity Rule 2021 is a legal document that the University uses to promote academic integrity, and manage breaches of the academic integrity principle. The Policy and Procedure support the Rule by outlining overarching principles, responsibilities and processes. The Academic Integrity Rule 2021 commences on 1 December 2021 and applies to courses commencing on or after that date, as well as to research conduct occurring on or after that date. Prior to this, the Academic Misconduct Rule 2015 applies.

 

The University commits to assisting all students to understand how to engage in academic work in ways that are consistent with, and actively support academic integrity. All coursework students must complete the online Academic Integrity Module (Epigeum), and Higher Degree Research (HDR) students are required to complete research integrity training. The Academic Integrity website provides information about services available to assist students with their assignments, examinations and other learning activities, as well as understanding and upholding academic integrity.

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 hard copy submission.

Late Submission

Late submission of assessment tasks is not accepted.

Extension of the assignment is not usually considered by the lecturer as the assignment is done by a large group of students and to be completed from week 3 to week 12 progressively. Other group members are expected to complete the tasks even if one or more members were not able to due to any uncontrollable reasons. No extension or special consideration will be granted to small teams (less than 5 students due to unexpected drop out or inactivity of some members).

Referencing Requirements

The Academic Skills website has information to assist you with your writing and assessments. The website includes information about Academic Integrity including referencing requirements for different disciplines. There is also information on Plagiarism and different ways to use source material.

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 Access 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