ACC40940 Business Valuation & Analysis

Academic Year 2023/2024

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, be able to write their equity research reports, and conduct a stock pitch.

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Curricular information is subject to change

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 includes:

1. Introduction to Business Valuation
2. Strategy Analysis: Industry Analysis, Competitive Analysis & Corporate Strategy
3. Accounting Analysis: Accounting Quality Assessment
4. Financial Analysis: Financial Statement Analysis, Ratio Analysis, Cash Flow Analysis
5. Perspective Analysis: Forecasting Financial Statements
6. Valuation Theory and Approaches
7. Excel Modeling (discounted cash flow analysis)
8. Excel Modeling (earnings-based valuation, and market multiples)
9. Equity Security Valuation
10. Credit Analysis Valuation
11. Mergers & Acquisitions Valuation
12. Valuation Challenges and Ethical Considerations

Student Effort Type Hours
Autonomous Student Learning

86

Lectures

24

Total

110

Requirements, Exclusions and Recommendations

Not applicable to this module.


Module Requisites and Incompatibles
Not applicable to this module.
 
Assessment Strategy  
Description Timing Open Book Exam Component Scale Must Pass Component % of Final Grade
Examination: End of Trimester Examination 3 hour End of Trimester Exam No Graded Yes

30

Project: Equity Research Report & Stock Pitch Coursework (End of Trimester) n/a Graded Yes

30

Attendance: Class Participation Throughout the Trimester n/a Graded No

10

Group Project: Financial Modeling with Excel Throughout the Trimester n/a Graded Yes

30


Carry forward of passed components
No
 
Resit In Terminal Exam
Summer Yes - 3 Hour
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.

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.
Spring
     
Lecture Offering 1 Week(s) - 29, 30, 31, 32, 33, 34 Thurs 11:30 - 13:20
Lecture Offering 1 Week(s) - 30, 31, 32, 33 Tues 13:00 - 14:50
Lecture Offering 1 Week(s) - 29, 34 Tues 14:30 - 16:20
Spring
     

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