fin3sev security valuation
SECURITY VALUATION
FIN3SEV
2016
Credit points: 15
Subject outline
This subject provides will provide you with hands-on experience in undertaking and communicating investment research. Working in teams, you will produce "sell-side" investment research on stocks listed on the ASX. Your team will compete to convince a "buy-side" panel of professional fund managers of the merit of your investment advice as set out in a 10-page report on your research, valuation and recommendations; a 10-minute summary of their recommendations; followed by a further 10 minutes of Q&A with the panel.
SchoolLa Trobe Business School
Credit points15
Subject Co-ordinatorGreg Jamieson
Available to Study Abroad StudentsYes
Subject year levelYear Level 3 - UG
Exchange StudentsYes
Subject particulars
Subject rules
Prerequisites FIN1FOF OR BUS1AFB
Co-requisitesN/A
Incompatible subjectsN/A
Equivalent subjectsN/A
Special conditionsN/A
Learning resources
Readings
| Resource Type | Title | Resource Requirement | Author and Year | Publisher |
|---|---|---|---|---|
| Readings | Valuation | Prescribed | Koller T, Goedhart, M, Wessels D, Benrud E. (5th edition) | John Wiley & Sons |
Graduate capabilities & intended learning outcomes
01. Analyse and resolve ethical dilemmas associated with investment research and the provision of investment advice
- Activities:
- Class discussion and debate around ethical question raised in the researching and valuing of the company.
- Related graduate capabilities and elements:
- Ethical Awareness(Ethical Awareness)
02. Engage in a number of roles, facilitate discussion, collaborate and effectively resolve conflicts, within an investment research team
- Activities:
- Seminars and class discussion about the characteristics of effective teams.
- Related graduate capabilities and elements:
- Teamwork(Teamwork)
03. Locate, manipulate, evaluate and interpret economic, industry, financial and other data as required to estimate the intrinsic value of a listed stock.
- Activities:
- Seminars.
- Related graduate capabilities and elements:
- Inquiry/ Research(Inquiry/ Research)
04. Define an original, logical, analytical argument as to the intrinsic value of the stock, by applying theoretical concepts to the data and by stress testing the argument through sensitivity and scenario analysis.
- Activities:
- Seminars.
- Related graduate capabilities and elements:
- Critical Thinking(Critical Thinking)
05. Define a logical and coherent investment strategy, based on an appraisal of the range of valuations and risks associated with the stock, in the context of current market conditions.
- Activities:
- Seminars.
- Related graduate capabilities and elements:
- Critical Thinking(Critical Thinking)
06. Write a clear, concise and well-structured report, presenting the argument as to the intrinsic value of the stock and the investment advice relevant to that stock.
- Activities:
- Writing an investment valuation report
- Related graduate capabilities and elements:
- Writing(Writing)
07. Deliver an engaging, persuasive, oral presentation of your investment advice in relation to the stock to a panel of investment professionals.
- Activities:
- Presenting investment advice
- Related graduate capabilities and elements:
- Speaking(Speaking)
08. Evaluate and respond to impromptu questions and counter arguments in respect of the intrinsic value of the stock and investment advice from a panel of investment professionals.
- Activities:
- Answering questions posed by a panel of professionals in relation to the investment advice
- Related graduate capabilities and elements:
- Speaking(Speaking)
Subject options
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Melbourne, 2016, Summer 3, Blended
Overview
Online enrolmentYes
Maximum enrolment sizeN/A
Enrolment information
Subject Instance Co-ordinatorGreg Jamieson
Class requirements
Problem Based LearningWeek: 06 - 07
Ten 2.0 hours problem based learning per study period on weekdays during the day from week 06 to week 07 and delivered via blended.
"One per day (plus one repeat if necessary) for 10 days per study period"
Lecture/SeminarWeek: 06 - 07
Ten 1.0 hours lecture/seminar per study period on weekdays during the day from week 06 to week 07 and delivered via face-to-face.
"One per day for 10 days of study period"
Assessments
| Assessment element | Comments | % | ILO* |
|---|---|---|---|
| 10 On-line 10-question MCQs | 20 | 01, 03, 04, 05 | |
| one 10-minute investment presentation and 10-minute Q&A (Team of 4) | Graded as an individual assessment | 20 | 07, 08 |
| one 10-page investment valuation report | Includes an individual peer evaluated weighting of contribution to team (Team of 4) - 10% | 40 | 02, 03, 04, 05, 06 |
| One 60-minute final examination | 20 | 01, 03 |