Course Details in 2020/21 Session

Module Title	LM Security Analysis and Valuation
School	Birmingham Business School
Department	Birmingham Business School
Module Code	07 15979
Module Lead	Dr. Tianshu Zhao
Level	Masters Level
Credits	10
Semester	Semester 2
Pre-requisites
Co-requisites
Restrictions	MSc Investments students and MSc Financial Management students only.
Exclusions
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	15979-04 : Class Test : Class Test (20%) 15979-05 : Examination : Exam (Centrally Timetabled) - Written Unseen (50%) 15979-06 : Group Report : Group Assessment - Coursework (30%)
Assessment Methods & Exceptions	Main assessment: MCQs (20%), Group report 3,000 words (30%) & 1 hour exam (50%). Re-assessment: 1,000 word indivdual assignment (50%) & 1 hour exam (50%). Students only resit the failed componment (or closet component)
Other
Reading List	Damodaran, A (2002), Investment Valuation, Wiley