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Financial Analysis and Valuation (ACCT30006)

Undergraduate level 3Points: 12.5Not available in 2019

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Overview

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This subject provides the capstone course in business financial analysis and firm valutaion. The subject will include a detailed analysis of a firm's business strategy, financial statements and additional disclosures to assess the quality, profitability, risk, future prospects and value of the firm.

Intended learning outcomes


  • Compare different accounting methods used in financial statements for valuation purposes.
  • Assess the quality of financial information and make adjustments if necessary.
  • Analyse financial statements to obtain the relevant information (profitability, risk, and growth potential) for valuing equities.
  • Explain business activities that determine value, identify “value created for shareholders”.
  • Develop skills to build forecasts of a firm’s future financial performance.
  • Analyse how fundamental values (or “intrinsic values”) are estimated
  • Synthesise, evaluate, and compare the dividend discount model, the discounted cash flow model, and the residual income model in valuing equities
  • Investigate the difference between fundamental, market and book values

Generic skills

  • High level of development: team work; application of theory to practice; interpretation and analysis; synthesis of data and other information; evaluation of data and other information; accessing data and other information from a range of sources.

  • Moderate level of development: collaborative learning; written communication; critical thinking; use of computer software; receptiveness to alternative ideas.

  • Some level of development: oral communication; statistical reasoning.

Last updated: 3 November 2022

Eligibility and requirements

Prerequisites

Both of-

Code Name Teaching period Credit Points
ACCT20002 Intermediate Financial Accounting
Semester 2 (On Campus - Parkville)
Summer Term (On Campus - Parkville)
Semester 1 (On Campus - Parkville)
 12.5
Intermediate Financial Accounting and;
Code Name Teaching period Credit Points
FNCE20001 Business Finance
Semester 1 (On Campus - Parkville)
Summer Term (On Campus - Parkville)
 12.5
Business Finance OR
Code Name Teaching period Credit Points
FNCE10002 Principles of Finance
Semester 2 (On Campus - Parkville)
Summer Term (On Campus - Parkville)
Semester 1 (On Campus - Parkville)
 12.5
Principles of Finance

Corequisites

None

Non-allowed subjects

None

Inherent requirements (core participation requirements)

The University of Melbourne is committed to providing students with reasonable adjustments to assessment and participation under the Disability Standards for Education (2005), and the Assessment and Results Policy (MPF1326). Students are expected to meet the core participation requirements for their course. These can be viewed under Entry and Participation Requirements for the course outlines in the Handbook.

Further details on how to seek academic adjustments can be found on the Student Equity and Disability Support website: http://services.unimelb.edu.au/student-equity/home

Last updated: 3 November 2022

Assessment

Additional details

  • A 2-hour end-of-semester examination (50%)
  • A written group assignment totalling not more than 5000 words due week 12, (30%)
  • A mid-semester test (15%)
  • Tutorial participation marks (5%)
  • To pass this subject students must pass the end of semester examination.

Last updated: 3 November 2022

Dates & times

Not available in 2019

Time commitment details

170 hours

Last updated: 3 November 2022

Further information

  • Texts

    Prescribed texts

    You will be advised of prescribed texts by your lecturer.

  • Available through the Community Access Program

    About the Community Access Program (CAP)

    This subject is available through the Community Access Program (also called Single Subject Studies) which allows you to enrol in single subjects offered by the University of Melbourne, without the commitment required to complete a whole degree.

    Entry requirements including prerequisites may apply. Please refer to the CAP applications page for further information.

  • Available to Study Abroad and/or Study Exchange Students

    This subject is available to students studying at the University from eligible overseas institutions on exchange and study abroad. Students are required to satisfy any listed requirements, such as pre- and co-requisites, for enrolment in the subject.

Last updated: 3 November 2022