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ACC40940

Academic Year 2024/2025

Business Valuation & Analysis (ACC40940)

Subject:
Accountancy
College:
Business
School:
Business
Level:
4 (Masters)
Credits:
5
Module Coordinator:
Dr Daniel Peng
Trimester:
Spring
Mode of Delivery:
Blended
Internship Module:
No
How will I be graded?
Letter grades

Curricular information is subject to change.

This module gives students a detailed understanding of advanced corporate valuation using Excel. It starts with the four main aspects of business valuation: strategy, accounting, financial, and prospective analysis. It then covers important valuation methods, such as the Discounted Cash Flow (DCF) model, the multiples method, and the comparative transaction approach. The module provides thorough knowledge on using these techniques in equity security analysis, credit analysis, and mergers and acquisitions (M&A) analysis, ensuring a comprehensive education in business analysis and valuation. After completing this module, students will have advanced financial modeling skills and be able to write their equity research reports.

About this Module

Learning Outcomes:

Upon completing this module, students will be able to:

1. Understand how a firm's business strategy and operational and financial characteristics influence its valuation.
2. Identify potential valuation red flags, such as earnings quality, through financial statement analysis.
3. Forecast financial statements and cash flows for comprehensive valuation purposes.
4. Synthesize various tools and techniques to accurately determine a firm's equity valuation.
5. Master common valuation methods like discounted cash flow analysis and augment them with practical approaches including earnings-based valuation, valuation multiples, and analysis of comparable transactions.

Indicative Module Content:

This module will capture not only the finance material as well as focusing on developing students’ analytical skills, emphasising company valuation, internal investment decisions and strategic decision making. On completion of this module, the student should be able to:
• appreciate the role of budgeting, performance management and measurement in strategic decision making;
• Ability to calculate, explain, interpret and advise on the full range of variances – sales variances, cost variances, incl. planning and operational variances
• Ability to calculate, explain, interpret and advise on performance measurement and management – financial and non-financial KPIs (including divisional performance management involving transfer pricing)
• understand the risk and return characteristics of equity, debt and other financial instruments;
• advise on the appropriate use of different sources of finance;
• carry out company valuations; and
• evaluate firm investment decisions and have an awareness of the factors that influence corporate financing and dividend decisions.

Student Effort Hours:
Student Effort Type Hours
Lectures

24

Autonomous Student Learning

86

Total

110


Approaches to Teaching and Learning:
Lectures; Peer and group work; Case-based learning

Requirements, Exclusions and Recommendations

Not applicable to this module.


Module Requisites and Incompatibles
Not applicable to this module.
 

Assessment Strategy  
Description Timing Component Scale Must Pass Component % of Final Grade In Module Component Repeat Offered
Exam (In-person): The final exam will consist of four questions, each worth 25 marks. Two questions will be based on the performance management content of the course and two questions based on financial management. End of trimester
Duration:
3 hr(s)
Graded Yes

80

Yes
Assignment(Including Essay): The continuous assessment involves a qualitative report to be handed up at the end of the 6-week period, analysing performance management in two listed companies. Week 12 Graded Yes

20

Yes

Carry forward of passed components
No
 

Resit In Terminal Exam
Summer Yes - 2 Hour
Please see Student Jargon Buster for more information about remediation types and timing. 

Feedback Strategy/Strategies

• Feedback individually to students, on an activity or draft prior to summative assessment
• Feedback individually to students, post-assessment
• Group/class feedback, post-assessment

How will my Feedback be Delivered?

Not yet recorded.

‘Cost Management: A Strategic Emphasis’ 9th edition (international edition) (2022) by Edward Blocher, Paul Juras, Steven Smith, McGraw Hill, (ISBN: 978-1-265-71455-0)

Business Analysis and Valuation, IFRS edition / Krishna G. Palepu, Paul M. Healy, Erik Peek.
Fourth edition. Available through UCD library: https://librarym.ucd.ie/record=b2101540~S1.