AFC3230 - Financial analysis and valuation

Offered

Clayton Second semester 2009 (Day)

Synopsis

Topics covered include analysis of published financial statements, application and use of financial ratios and forecasting techniques; cash flow-based share valuation, including discounted cash flow and free cash flow approaches to valuation; accounting-based share valuation including earnings multiples, residual income valuation models and economic value added; credit analysis and financial distress prediction, equity security analysis and mergers and takeovers, based on Australian and international case studies.

Objectives

The learning goals associated with this unit are to:

• access and extract financial information from published financial reports and databases
• calculate and interpret relevant financial ratios concerned with the profitability, financial structure and solvency of listed public companies
• apply and critically assess approaches to valuation including discounted cash flow and residual income methods
• apply valuation methods to contexts such as security valuation, mergers and acquisitions and credit analysis
• apply critical thinking, problem solving and presentation skills to individual and/or group activities dealing with financial analysis and valuation.

Assessment

Within semester assessment: 50%
Examination (3 hours): 50%

Contact hours

One 2-hour lecture and one 1-hour tutorial per week

Prerequisites

AFC2140