SECURITY VALUATION
FIN3SEV
2015
Credit points: 15
Subject outline
This subject provides the students with hands-on experience in undertaking and communicating investment research. The students, working in teams, produce "sell-side" investment research on stocks listed on the ASX. The teams compete to convince a "buy-side" panel of professional fund managers of the merit of their investment advice as set out in a 10-page report on their research, valuation and recommendations; a 10-minute summary of their recommendations; followed by a further 10 minutes of Q&A with the panel.
School: La Trobe Business School
Credit points: 15
Subject Co-ordinator: Greg Jamieson
Available to Study Abroad Students: Yes
Subject year level: Year Level 3 - UG
Exchange Students: Yes
Subject particulars
Subject rules
Prerequisites: FIN1FOF OR BUS1AFB
Co-requisites: N/A
Incompatible subjects: N/A
Equivalent subjects: N/A
Special conditions: N/A
Learning resources
Readings
| Resource Type | Title | Resource Requirement | Author and Year | Publisher |
|---|---|---|---|---|
| Readings | Equity asset valuation | Prescribed | Pinto,J., Henry,E., Robinson, T. Stowe,J | 2ND EDN. JOHN WILEY AND SONS, 2010 |
| Readings | Investment valuation | Recommended | Damodaran, A., | 2ND. EDN., WHILEY FINANCE |
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.
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.
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 conducted by professional analysts.
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 conducted by professional analysts
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 conducted by professional analysts
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
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
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
Melbourne, 2015, Semester 1, Day
Overview
Online enrolment: Yes
Maximum enrolment size: N/A
Enrolment information:
Subject Instance Co-ordinator: Greg Jamieson
Class requirements
LectureWeek: 10 - 22
One 2.0 hours lecture per week on weekdays during the day from week 10 to week 22 and delivered via face-to-face.
TutorialWeek: 10 - 22
One 1.0 hours tutorial per week on weekdays during the day from week 10 to week 22 and delivered via face-to-face.
Assessments
| Assessment element | Comments | % | ILO* |
|---|---|---|---|
| 10 On-line 10-question MCQs | 30 | 01, 03, 04, 05 | |
| one 10-minute investment presentation and 10-minute Q&A (Team of 4) | 20 | 07, 08 | |
| one 10-page investment valuation report | including an individual peer evaluated weighting of contribution to team (Team of 4) | 50 | 03, 04, 05, 06 |