Investment Analysis 2
| Module title | Investment Analysis 2 |
|---|---|
| Module code | BEAM038 |
| Academic year | 2019/0 |
| Credits | 15 |
| Module staff | Professor Pengguo Wang (Convenor) |
| Duration: Term | 1 | 2 | 3 |
|---|---|---|---|
| Duration: Weeks | 11 |
| Number students taking module (anticipated) | 151 |
|---|
Module description
Investment Analysis II aims to take the valuation techniques developed and appraised in Investment Analysis I (BEAM032) and apply them to the valuation of equities in major industrial sectors. Â This variety of geographic, industrial and other specialised circumstances requires careful selection of appropriate valuation methods and the interpretation of different standards of financial reporting and disclosure.
Additional Information:
Research in Teaching
The whole module is informed by academic research, in particular by the module lead.
Module aims - intentions of the module
Investment Analysis 2 aims to take the valuation techniques developed and appraised in Investment Analysis (BEAM032) and to apply them to the valuation of equities in major industrial sectors. Â This variety of geographic, industrial and other specialised circumstances requires careful selection of appropriate valuation methods and the interpretation of different standards of financial reporting and disclosure. Â Ultimately the aim is to give students the ability to produce equity research reports to professional standards.
Intended Learning Outcomes (ILOs)
ILO: Module-specific skills
On successfully completing the module you will be able to...
- 1. apply selectively and critically 'new' value enhancement and valuation paradigms
- 2. understand the proper focus of investment analysis in the modern equity environment
- 3. understand and respond creatively to cross-border financial analysis in industrial sectors
- 4. apply selectively traditional risk measures
- 5. identify and discuss ethical issues affecting corporate operations and reporting
ILO: Discipline-specific skills
On successfully completing the module you will be able to...
- 6. review and select appropriate analytical techniques
- 7. access and critically review research reports and other data sources
- 8. draw well-defined and supported conclusions when analysing a complex and specialised problem.
ILO: Personal and key skills
On successfully completing the module you will be able to...
- 9. as an individual to present complex, technical reports.
Syllabus plan
- Equity valuation approaches including earnings, dividends, cash generation and value investing.
- Contemporary methods of operationalising the FCF model.
- Earnings forecasts, business environment analysis and technical analysis.
- The weighted average cost of capital and implied cost of equity capital.
- Value drivers and competitive strategy â Industry analysis; Company analysis and stock selection.
- Market efficiency implications for investment analysis and estimation of cost of equity capital.
Learning activities and teaching methods (given in hours of study time)
| Scheduled Learning and Teaching Activities | Guided independent study | Placement / study abroad |
|---|---|---|
| 33 | 117 | 0 |
Details of learning activities and teaching methods
| Category | Hours of study time | Description |
|---|---|---|
| Contact hours | 22 | Lectures |
| Contact hours | 11 | Practical classes |
Formative assessment
| Form of assessment | Size of the assessment (eg length / duration) | ILOs assessed | Feedback method |
|---|---|---|---|
| Mock examination | 2 hours | 1-9 | Exam grade and written feedback on ELE |
Summative assessment (% of credit)
| Coursework | Written exams | Practical exams |
|---|---|---|
| 0 | 100 | 0 |
Details of summative assessment
| Form of assessment | % of credit | Size of the assessment (eg length / duration) | ILOs assessed | Feedback method |
|---|---|---|---|---|
| Examination | 100 | 2 hours | 1-9 | Exam grade and written feedback on ELE |
Details of re-assessment (where required by referral or deferral)
| Original form of assessment | Form of re-assessment | ILOs re-assessed | Timescale for re-assessment |
|---|---|---|---|
| Examination | Examination (100%) 2 hours | 1-9 | Aug/Sep |
Indicative learning resources - Basic reading
Basic reading:
- K. Palepu, P. Healy, V. Bernard, and E. Peek (2015, Business Analysis and Valuation, IFRS edition (third edition), text only; Cengage Learning Business Press.
Supplementary reading:
- T Copeland, T Koller, J Murrin, McKinsey & Co Inc, 2013, Valuation-Measuring and Managing Value of Companies, 5th ed., Wiley
- Alan Gregory, Strategic Valuation of Companies, 2nd Edition., Financial Times
- Lundholme R and R Sloan, Equity Valuation and Analysis, 2nd edition, Mc Graw-Hill Irwin
| Credit value | 15 |
|---|---|
| Module ECTS | 7.5 |
| Module pre-requisites | None |
| Module co-requisites | BEAM032 Investment Analysis 1 |
| NQF level (module) | 7 |
| Available as distance learning? | No |
| Origin date | 01/09/2007 |
| Last revision date | 27/07/2018 |