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Module Title LM Security Analysis and Valuation
SchoolBirmingham Business School
Department Birmingham Business School
Module Code 07 15979
Module Lead Dr. Tianshu Zhao
Level Masters Level
Credits 10
Semester Semester 2
Restrictions MSc Investments students and MSc Financial Management students only.
Contact Hours Lecture-0 hours
Seminar-0 hours
Tutorial-0 hours
Project supervision-0 hours
Demonstration-0 hours
Practical Classes and workshops-0 hours
Supervised time in studio/workshop-0 hours
Fieldwork-0 hours
External Visits-0 hours
Work based learning-0 hours
Guided independent study-0 hours
Placement-0 hours
Year Abroad-0 hours
Description This module aims at students interested in corporate finance, equity research, fund management, and strategy consulting. This module introduces the valuation techniques used by analysts - in corporate finance, equity research, fund management, and strategy consulting – in order to value stocks and firms. The valuation techniques covered by this module include: 1) Strategy analysis: Identifying a firm's strategy and understanding sources of its competitive advantage; 2) Accounting analysis: Assessing how a firm's financial statements reflect its economics and determining whether any adjustments are needed. 3) Financial analysis: Evaluating a firm's performance using ratios and cash flow data; and 4) Forecasting future performance in future economic environment taking into account the historical relationship firm's financial performance and economic factors and estimating the valuation of the firm. It furthermore shows how the value of a stock or a firm in an efficient market reflects expectations of future performance.
Learning Outcomes By the end of the module students should be able to:
  • Conduct a critical evaluation of the strategies of a firm and identify its key drivers and risks.
  • Critically analyse and evaluate financial statements of firms
  • Apply a wide range of earnings and cash flow based forecasting and valuation models
  • Have a deep knowledge and understanding of the strengths and weakness of earnings and cash flow based forecasting and valuation models
Assessment 15979-01 : Examination : Exam (Centrally Timetabled) - Written Unseen (75%)
15979-02 : Group Assignment : Group Assessment - Coursework (25%)
Assessment Methods & Exceptions Group Project Assignment of 2,500 words (25%) and a 2 hour exam (75%) Reassessment: a 2 hour exam (100%)
Reading List Damodaran, A (2002), Investment Valuation, Wiley