The aim of this subject is to provide students with an understanding of the drivers of valuation. The subject covers the issues in forecasting variables and estimating parameters concerning risk and valuation. Students will evaluate the various theories and practice of equity valuation. Students will apply the valuation theories to estimate the value of a company’s security using both accounting information, company data as well as other financial market data. The subject introduces financial management by focusing on valuing projects with the special case of company valuation. The subject uses a range of valuation models (including traditional accounting and finance techniques) as well as the underlying valuation theory and empirical evidence that support those models. A practical appreciation of the different theories/models and their limitations is achieved via a project requiring students to value their own company or one their company might consider for a takeover.
Changes due to Commonwealth Games: The University has marginally altered the timetable for the January semester of 2018 (181) to ensure that students have the opportunity to engage with the Commonwealth Games to be held in April 2018. The modified timetable has been designed to not impact on overall subject or program learning outcomes. Some subjects may be delivered in a slightly modified mode to accommodate the change. Specific arrangements will be included on the iLearn site for each subject. All changes to the class schedule have the full approval of University and Academic Unit administration and will not adversely affect student learning or assessment.
|Academic unit:||Bond Business School|
Delivery & attendance
|Prescribed resources:||No Prescribed resources. After enrolment, students can check the Books and Tools area in iLearn for the full Resource List.|
|[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
|Restrictions: ?|| This subject is not available to|
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:
- Students are able to demonstrate an understanding of a range of cashflow, earnings and other valuation methods
- Students will be able to read, interpret and reconstruct financial statements from the perspective of forecasting value relevant variables
- Students will be able to forecast earnings, cashflows, dividends, and the balance sheet for a company
- Students will be able to estimate all variables and parameters necessary to calculate the weighted average cost of capital
- Students will understand the practical issues, problems, and limitations of forecasts and valuation models. Be able to assess the risk of a company's securities through the application of ratio analysis and for a company's securities, be able to integrate the risk assessment, forecasts, and valuation models into a spreadsheet model. Understand and apply excel routines to support a valuation model.
- Students will be able to communicate, both written and orally, their valuations results, their assumptions and forecasts and the limitations of their valuations
|*Concept Document||Valuation Template Development||10%||Ongoing||1, 2, 3.|
|*Class Participation||Workshop Questions & Class Participation||10%||Ongoing||1, 2, 3, 4.|
|Essay||Course Reflection||10%||In Consultation||1, 2, 3, 4, 5, 6.|
|Oral Pitch||Oral Project Presentation||20%||In Consultation||6.|
|Essay||Valuation Assignment||50%||In Consultation||1, 2, 3, 4, 5.|
- * 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.
Introduction to the valuation of projects and securities.
Consider a range of valuation model that can be used to value a company5.