The aim of this subject is to provide students with an understanding of the drivers and process of valuation. The focus is generally on techniques for valuing projects with an emphasis on company valuation. A range of valuation models is examined, including traditional accounting and finance techniques. A practical appreciation of the underlying theories and tools is achieved through an applied project valuing the takeover target of a firm.
|Academic unit:||Bond Business School|
Delivery & attendance
|Attendance and learning activities:||Attendance at all class sessions is expected. Students are expected to notify the instructor of any absences with as much advance notice as possible.|
|[email protected] & Email:||[email protected] is the online learning environment at Bond University and is used to provide access to subject materials, lecture recordings and detailed subject information regarding the subject curriculum, assessment and timing. Both iLearn and the Student Email facility are used to provide important subject notifications. Additionally, official correspondence from the University will be forwarded to students’ Bond email account and must be monitored by the student.|
To access these services, log on to the Student Portal from the Bond University website as www.bond.edu.au
Assumed knowledge is the minimum level of knowledge of a subject area that students are assumed to have acquired through previous study. It is the responsibility of students to ensure they meet the assumed knowledge expectations of the subject. Students who do not possess this prior knowledge are strongly recommended against enrolling and do so at their own risk. No concessions will be made for students’ lack of prior knowledge.
Assumed Prior Learning (or equivalent):
|Restrictions: ?|| This subject is not available to|
Must be admitted into an EMBA Program.
This subject is not available as a general elective. To be eligible for enrolment, the subject must be specified in the students’ program structure.
Assurance of learning
Assurance of Learning means that universities take responsibility for creating, monitoring and updating curriculum, teaching and assessment so that students graduate with the knowledge, skills and attributes they need for employability and/or further study.
At Bond University, we carefully develop subject and program outcomes to ensure that student learning in each subject contributes to the whole student experience. Students are encouraged to carefully read and consider subject and program outcomes as combined elements.
Program Learning Outcomes (PLOs)
Program Learning Outcomes provide a broad and measurable set of standards that incorporate a range of knowledge and skills that will be achieved on completion of the program. If you are undertaking this subject as part of a degree program, you should refer to the relevant degree program outcomes and graduate attributes as they relate to this subject.
Subject Learning Outcomes (SLOs)
On successful completion of this subject the learner will be able to:
- Demonstrate an understanding and application of a range of cash flow, earnings and other valuation methods.
- Forecast earnings, cash flows, dividends and the balance sheet for a company from adjusted financial statements.
- Estimate the parameters to calculate the weighted average cost of capital.
- Develop an integrated valuation model linking market, benchmark and firm data that assesses the impact of the firm’s value drivers and market trends on the value of a firm.
- Articulate ideas, decisions, recommendations and other valuation information in a clear, concise writing style appropriate for the intended purpose and audience.
- Deliver a clear, concise, well-organised presentation summarising a valuation analysis and recommendations.
|In-Class Quiz - Individual||Responses to workshop questions.||10%||Week 1||1, 2, 3.|
|Reflective Essay||Personal reflection on your relevant experiences and insights.||10%||In Consultation||1, 2, 3, 4, 5.|
|Project||Valuation template development||10%||In Consultation||1, 2, 3, 4.|
|Project||Valuation assignment||50%||In Consultation||4.|
|Oral Pitch||Project presentation||20%||In Consultation||5, 6.|
- * Assessment timing is indicative of the week that the assessment is due or begins (where conducted over multiple weeks), and is based on the standard University academic calendar
- C = Students must reach a level of competency to successfully complete this assessment.
|High Distinction||85-100||Outstanding or exemplary performance in the following areas: interpretative ability; intellectual initiative in response to questions; mastery of the skills required by the subject, general levels of knowledge and analytic ability or clear thinking.|
|Distinction||75-84||Usually awarded to students whose performance goes well beyond the minimum requirements set for tasks required in assessment, and who perform well in most of the above areas.|
|Credit||65-74||Usually awarded to students whose performance is considered to go beyond the minimum requirements for work set for assessment. Assessable work is typically characterised by a strong performance in some of the capacities listed above.|
|Pass||50-64||Usually awarded to students whose performance meets the requirements set for work provided for assessment.|
|Fail||0-49||Usually awarded to students whose performance is not considered to meet the minimum requirements set for particular tasks. The fail grade may be a result of insufficient preparation, of inattention to assignment guidelines or lack of academic ability. A frequent cause of failure is lack of attention to subject or assignment guidelines.|
For the purposes of quality assurance, Bond University conducts an evaluation process to measure and document student assessment as evidence of the extent to which program and subject learning outcomes are achieved. Some examples of student work will be retained for potential research and quality auditing purposes only. Any student work used will be treated confidentially and no student grades will be affected.
Students must check the [email protected] subject site for detailed assessment information and submission procedures.
Policy on late submission and extensions
A late penalty will be applied to all overdue assessment tasks unless an extension is granted by the subject coordinator. The standard penalty will be 10% of marks awarded to that assessment per day late with no assessment to be accepted seven days after the due date. Where a student is granted an extension, the penalty of 10% per day late starts from the new due date.
Policy on plagiarism
University’s Academic Integrity Policy defines plagiarism as the act of misrepresenting as one’s own original work: another’s ideas, interpretations, words, or creative works; and/or one’s own previous ideas, interpretations, words, or creative work without acknowledging that it was used previously (i.e., self-plagiarism). The University considers the act of plagiarising to be a breach of the Student Conduct Code and, therefore, subject to the Discipline Regulations which provide for a range of penalties including the reduction of marks or grades, fines and suspension from the University.
Feedback on assessment
Feedback on assessment will be provided to students within two weeks of the assessment submission due date, as per the Assessment Policy.
If you have a disability, illness, injury or health condition that impacts your capacity to complete studies, exams or assessment tasks, it is important you let us know your special requirements, early in the semester. Students will need to make an application for support and submit it with recent, comprehensive documentation at an appointment with a Disability Officer. Students with a disability are encouraged to contact the Disability Office at the earliest possible time, to meet staff and learn about the services available to meet your specific needs. Please note that late notification or failure to disclose your disability can be to your disadvantage as the University cannot guarantee support under such circumstances.
Additional subject information
Participants will be expected to use www.googlescholar.com to access appropriate academic support material for their project. Note google scholar can be accessed via the Bond University home page by selecting library then electronic resources, click g then google scholar. Accessing google scholar this way often gives students access to PDF download of articles under the University's arrangements with various but not all commercial databases. As part of the requirements for Business School quality accreditation, the Bond Business School employs an evaluation process to measure and document student assessment as evidence of the extent to which program and subject learning outcomes are achieved. Some examples of student work will be retained for potential research and quality auditing purposes only. Any student work used will be treated confidentially and no student grades will be affected.
An overview of the subject and an introduction to the valuation of projects and securities.
Introduces key financial mathematics and the concepts of time value of money and equivalence in the context of valuation.
Application of financial valuation concepts to the valuation of stocks and bonds.
An overview of fundamental capital budgeting techniques and associated managerial issues.
Examines theory and techniques for forecasting earnings, cash flows, pro-forma balance sheet and dividends. The forecasting techniques are implemented in a workshop as part of an integrated valuation model.
An exploration of the measurement of risk and how it can be priced using the capital asset pricing model (CAPM) including an introduction to portfolio theory.
Techniques for estimating cost of capital including weighted average cost of capital (WACC) are examined. The concepts are applied in a workshop to explore the practical issues in estimation WACC and incorporated into an integrated model and applied in various valuation models.
Considers a range of valuation models and approaches (including research evidence) that can be used to value a company. The concepts, tools and techniques are applied in a hands-on workshop to value a company from multiple approaches. The workshop modelling integrates the valuation concepts from estimating inputs to testing valuation model sensitivity and appropriateness.