SECURITY VALUATION
FIN3SEV
2017
Credit points: 15
Subject outline
This subject 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 an audience 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.
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 | 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)
Melbourne, 2017, Semester 1, Day
Overview
Online enrolment: Yes
Maximum enrolment size: N/A
Enrolment information:
Subject Instance Co-ordinator: Greg Jamieson
Class requirements
Problem Based LearningWeek: 11 - 22
Eleven 1.0 hours problem based learning per study period on weekdays during the day from week 11 to week 22 and delivered via face-to-face.
Lecture/SeminarWeek: 10 - 22
Twelve 2.0 hours lecture/seminar per study period 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 | 20 | 01, 03, 04, 05 | |
| One 10-minute investment presentation and 10-minute Q&A | Group of 4 Graded as an individual assessment | 20 | 07, 08 |
| One 10-page investment valuation report (2,500 words) | Group of 4 Includes an individual peer evaluated weighting of contribution to team 10% | 30 | 02, 03, 04, 05, 06 |
| One 90-minute final examination | 30 | 01, 03 |