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Module Title LM Security Analysis and Valuation
SchoolBirmingham Business School
Department Birmingham Business School
Module Code 07 29874
Module Lead Dr. Tianshu Zhao
Level Masters Level
Credits 10
Semester Semester 2
Restrictions Only available for students on MSc Investments (Singapore)
Contact 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:
  • Perform strategy analysis to identify the firm's profit drivers and key risks
  • Analyse and evaluate financial statements of firms
  • Analyse how business value is created
  • Explain and discuss the relevance of accounting and cash flow based models to business forecasting and valuation
  • Apply accounting and cash flow based models to business valuation
  • Apply forecasting techniques to business valuation
  • Understand the foundation of relative valuation methods such as P/E and book to market ratios
Assessment 29874-01 : 2 Hour Exam : Exam (Centrally Timetabled) - Written Unseen (75%)
29874-02 : Group Project Assignment of 2,500 words : Group Assessment - Coursework (25%)
Assessment Methods & Exceptions Assessments:
Group Project Assignment of 2,500 words (25%) and a 2 hour exam (75%)
Reassessment: a 2 hour exam (100%)
Reading List