Corporate Valuation is a “capstone” finance course that draws on core corporate finance principles, theories and methods previously studies.  Students will work in teams to value an existing company, present their analysis and investment recommendation.  The techniques covered include discounted cash flow, multiple-based and asset-based valuations.  Because of the richness of the approach, most of the focus will be on discounted cash flow analysis.  While this entails more work and requires significant student initiative, this type of ‘learning by doing’ should provide a lasting framework.

Learning Outcomes

Upon successful completion, students will have the knowledge and skills to:

1. Demonstrate an in depth knowledge of valuations essentials;
2. Be able to implement and communicate techniques used to place a value on a company’s operations; and
3. Be able to use valuation tools to plan and monitor key corporate decisions.

Research-Led Teaching

By working through corporate valuation cases, students will learn and exercise the necessary skills for financial industry based research. With the distinct feature of learning by doing, this course will train students in critical analysis of real-world problems in corporate financial decisions, and evaluation and communication of valuation results

Examination Material or equipment

Non-programmable scientific calculator

Required Resources

 Prescribed textbook: Koller, T., Goedhart, M. and Wessels, D., Valuation: Measuring and Managing the Value of Companies, 6^th Edition, Mc Kinsey & Co (John Wiley and Sons), 2015.   [denoted ‘KGW’]

Students are expected to have access to a copy of the prescribed book for the duration of the semester. The book can be purchased from the on campus bookshop, with a small number of copies also available for 2 hour loan in the reserve loan section of the Chifley Library.

Other Reading

Damodaran A., Investment Valuation, 3rd Edition, University Edition (John Wiley and Sons), 2012.

 CFA Institute Code of Ethics and Standards of Professional Conduct

http://www.cfapubs.org/doi/pdf/10.2469/ccb.v2014.n6.1

 CFA Institute Standards of Practice Handbook (Standard V) (SPH)

http://www.cfapubs.org/doi/pdf/10.2469/ccb.v2014.n4.1

Recommended Resources

Additional materials will be made available on Wattle, including supplementary course notes, selected analyst reports, CFA readings, example worksheets, and other relevant items.

Staff Feedback

Students will be given feedback in the following forms in this course:

·        Comments and corrections to their submitted assignments;

·        Discussion of general issues in class for each of the four assignments;

·        Discussion with group members during consultation time.

Student Feedback

ANU is committed to the demonstration of educational excellence and regularly seeks feedback from students. Students are encouraged to offer feedback directly to their Course Convener or through their College and Course representatives (if applicable). The feedback given in these surveys is anonymous and provides the Colleges, University Education Committee and Academic Board with opportunities to recognise excellent teaching, and opportunities for improvement. The Surveys and Evaluation website provides more information on student surveys at ANU and reports on the feedback provided on ANU courses.

Other Information

Announcements Students are expected to check the Wattle site for announcements about this course, e.g. changes to timetables or notifications of cancellations. Notifications of emergency cancellations of lectures will be posted on the door of the relevant room.

Scaling

Your final mark for the course will be based on the raw marks allocated for each of your assessment items. However, your final mark may not be the same number as produced by that formula, as marks may be scaled. Any scaling applied will preserve the rank order of raw marks (i.e. if your raw mark exceeds that of another student, then your scaled mark will exceed the scaled mark of that student), and may be either up or down.

Support for Students

The University offers a number of support services for students. Information on these is available online from http://students.anu.edu.au/studentlife/

 Referencing Requirements

Referencing is essential to demonstrate that you have read thoroughly, and acknowledges the ideas and materials of other authors in your work. Students are required to apply the ‘Harvard Style’ of referencing in completing written work, where applicable. 

Refer to the College referencing guide for further details (http://cbe.anu.edu.au/students/student-information/examinations-assessment/).

 Assessment Requirements

As a further academic integrity control, students may be selected for a 15 minute individual oral examination of their written assessment submissions.

Any student identified, either during the current semester or in retrospect, as having used ghost writing services will be investigated under the University’s Academic Misconduct Rule.

Class Schedule

Week/Session	Summary of Activities	Assessment
1	Course overview Valuation in context Readings KGW Ch 1; Ch 2; Ch 3
2	Building a company model Readings KGW Ch 9	Lecture to finalize teams
3	Forecasting and model integrity Readings KGW Ch 6; Ch 10; Ch 11
4	Cost of capital Readings KGW Ch 13 Course Note 1
5	DCF valuation Readings KGW Ch 8; Ch 12; Ch 14	Online examination (via Wattle)
6	Multiple-based valuations Readings KGW Ch 16; Ch 17 Course Note 2, pp 1-6
7	Asset-based valuations Readings Damodaran Ch 19; Ch 25 KGW Ch 34 Course Note 2, pp 7-10	Assignment #1 due
8	Incorporating growth potential Readings KGW Ch 7; Ch 27
9	Sensitivity and scenario analysis Readings Damodaran Ch 33 KGW Ch 15
10	The investment decision (forming a recommendation) Readings KGW Ch 4; Ch 5
11	Special issues: - Cross-border valuation - Valuing high growth firms - Evaluating management - WACC as a value-driver Readings KGW Ch 23; Ch 29; Ch 32 CFA Code of Ethics; Standard of Practice Handbook, Part V (pp 127-147)	Assignment #2 due
12	Lecture on employment in the financial industry, review of past exam questions, exam hints Readings Practice Exam

Tutorial Registration

Tutorial signup for this course will be done via Wattle. Detailed information about signup times will be provided on Wattle or during your first lecture. When tutorials are available for enrolment, follow these steps:

1.   Log on to Wattle, and go to the course site

2.   Click on the link “Tutorial enrolment”

3.   On the right of the screen, click on the tab “Become Member of…..” for the tutorial class you wish to enter

4.   Confirm your choice

If you need to change your enrolment, you will be able to do so by clicking on the tab “Leave group….” and then re-enrol in another group. You will not be able to enrol in groups that have reached their maximum number. Please note that enrolment in ISIS must be finalised for you to have access to Wattle.

Assessment Summary

Assessment task	Value	Due Date	Return of assessment	Learning Outcomes
Online examination - 1 hour duration	20 %	29/03/2019	29/03/2019	1,3
Company model and DCF valuation	25 %	26/04/2019	10/05/2019	1,2,3
Multiple and Asset Based Valuation	15 %	24/05/2019	04/07/2019	1,2,3
Final Examination – 3-hour duration	40 %	06/06/2019	04/07/2019	1,2,3

* If the Due Date and Return of Assessment date are blank, see the Assessment Tab for specific Assessment Task details

Policies

ANU has educational policies, procedures and guidelines, which are designed to ensure that staff and students are aware of the University’s academic standards, and implement them. Students are expected to have read the Academic Misconduct Rule before the commencement of their course. Other key policies and guidelines include:

• Student Assessment (Coursework) Policy and Procedure
• Special Assessment Consideration Policy and General Information 
• Student Surveys and Evaluations
• Deferred Examinations
• Student Complaint Resolution Policy and Procedure

Assessment Requirements

The ANU is using Turnitin to enhance student citation and referencing techniques, and to assess assignment submissions as a component of the University's approach to managing Academic Integrity. For additional information regarding Turnitin please visit the ANU Online website. Students may choose not to submit assessment items through Turnitin. In this instance you will be required to submit, alongside the assessment item itself, hard copies of all references included in the assessment item.

Moderation of Assessment

Marks that are allocated during Semester are to be considered provisional until formalised by the College examiners meeting at the end of each Semester. If appropriate, some moderation of marks might be applied prior to final results being released.

Participation

Workshops

Commencing week 2, the lecturer will conduct a workshop of one hour per week. The week 2 workshop will introduce the “KGW model” template, and offer general advice on modelling in Microsoft Excel. From week 3, general guidance will be given on how to complete analysis for your company, including discussing methods and addressing any common problems or matters raised by students. At least one member from each team MUST attend, although all should attend with prepared questions.

Examination(s)

Final examination is of 3-hour duration. This is a closed book exam but students are allowed to bring one A4 sheet of paper with notes on both sides. Refer to "Assessment tasks" for further information.

Assessment Task 1

Online examination - 1 hour duration

Total weighting: 20%

 It is an online exam conducted via Wattle, consisting of multiple choice questions only. The questions will be of practical (numerical) nature and students will need to review and revise all material covered in lectures 1 to 5, inclusive, as well as the corresponding tutorial material. More details regarding the exam will be provided as the exam approaches.

Assessment Task 2

Company model and DCF valuation

It is a group-based assignment. Team formation will be done by the Lecturer in week 2.

Note: It is requested that any students intending to drop out of the course make their decision prior to team formation.

Objective

Produce a company model, and provide a DCF valuation of your company reflecting estimates of future cash flows from current operations.

What You Need To Submit

1.  Company model – integrated financial accounts, forecasts, valuation, summary tables and charts

2.  Explanatory notes and assumptions – to be incorporated within the model (excel file) as needed

3. Use wattle (online) submission

4. All files submitted to be named as follows:  FINM7044 Ass (number) - Team (number) - (description)

See file “Assignment Guidelines” on Wattle for further details on assignments, including objectives, requirements, guidance and marking criteria. 

Assessment Task 3

Multiple and Asset Based Valuation

It is a group-based assignment. Team formation will be done by the Lecturer in week 2.

Note: It is requested that any students intending to drop out of the course make their decision prior to team formation.

Objective

Round out the valuation with a range of appropriate multiple-based and asset-based valuations.

What You Need To Submit

1.  Company model – revised financial accounts, assumptions and forecasts

2.  Additional worksheets that detail all the multiple-based and asset-based valuation analysis

3. Use wattle (online) submission

4. All files submitted to be named as follows:  FINM7044 Ass (number) - Team (number) - (description)

See file “Assignment Guidelines” on Wattle for further details on assignments, including objectives, requirements, guidance and marking criteria. 

Assessment Task 4

Final Examination – 3-hour duration

Total weighting: 40% 

This is a closed book exam but students are allowed to bring one A4 sheet of paper with notes on both sides. A mixture of theory and practical (numerical) questions will be asked. Students will need to review and revise all material (weeks 1-12) pertaining to the course. Students will be provided with further details regarding the exam as it approaches. The marking criteria will be based on model solutions and answers prepared by the lecturer.

 The final exam is designed to: (i) test the student’s understanding and comprehension of the course material; (ii) ensure they have obtained the learning objectives of the course.

Centrally administered examinations through Examinations, Graduations & Prizes will be timetabled prior to the examination period. Please check ANU Timetabling for further information. Further information about the examination will be provided in class and on Wattle closer to the time of the examination

Academic Integrity

Academic integrity is a core part of our culture as a community of scholars. At its heart, academic integrity is about behaving ethically. This means that all members of the community commit to honest and responsible scholarly practice and to upholding these values with respect and fairness. The Australian National University commits to embedding the values of academic integrity in our teaching and learning. We ensure that all members of our community understand how to engage in academic work in ways that are consistent with, and actively support academic integrity. The ANU expects staff and students to uphold high standards of academic integrity and act ethically and honestly, to ensure the quality and value of the qualification that you will graduate with. The University has policies and procedures in place to promote academic integrity and manage academic misconduct. Visit the following Academic honesty & plagiarism website for more information about academic integrity and what the ANU considers academic misconduct. The ANU offers a number of services to assist students with their assignments, examinations, and other learning activities. The Academic Skills and Learning Centre offers a number of workshops and seminars that you may find useful for your studies.

Online Submission

Online Submission: In cases where assessment material is digitally produced, the default form of submission should be online. Please keep a copy of the assignment for your records.

The ANU is using Turnitin to enhance student citation and referencing techniques, and to assess assignment submissions as a component of the University's approach to managing Academic Integrity. For additional information regarding Turnitin please visit ANU Online.

Hardcopy Submission

No hardcopy submission is required.

Late Submission

No submission of assessment tasks without an extension after the due date will be permitted. If an assessment task is not submitted by the due date, a mark of 0 will be awarded.

Referencing Requirements

Accepted academic practice for referencing sources that you use in presentations can be found via the links on the Wattle site, under the file named “ANU and College Policies, Program Information, Student Support Services and Assessment”. Alternatively, you can seek help through the Students Learning Development website.

Returning Assignments

Students will have their assignments and marks returned to them via email.

 

Extensions and Penalties

Extensions and late submission of assessment pieces are covered by the Student Assessment (Coursework) Policy and Procedure. The Course Convener may grant extensions for assessment pieces that are not examinations or take-home examinations. If you need an extension, you must request an extension in writing on or before the due date. If you have documented and appropriate medical evidence that demonstrates you were not able to request an extension on or before the due date, you may be able to request it after the due date.

Privacy Notice

The ANU has made a number of third party, online, databases available for students to use. Use of each online database is conditional on student end users first agreeing to the database licensor’s terms of service and/or privacy policy. Students should read these carefully. In some cases student end users will be required to register an account with the database licensor and submit personal information, including their: first name; last name; ANU email address; and other information.
In cases where student end users are asked to submit ‘content’ to a database, such as an assignment or short answers, the database licensor may only use the student’s ‘content’ in accordance with the terms of service – including any (copyright) licence the student grants to the database licensor. Any personal information or content a student submits may be stored by the licensor, potentially offshore, and will be used to process the database service in accordance with the licensors terms of service and/or privacy policy.
If any student chooses not to agree to the database licensor’s terms of service or privacy policy, the student will not be able to access and use the database. In these circumstances students should contact their lecturer to enquire about alternative arrangements that are available.

Distribution of grades policy

Academic Quality Assurance Committee monitors the performance of students, including attrition, further study and employment rates and grade distribution, and College reports on quality assurance processes for assessment activities, including alignment with national and international disciplinary and interdisciplinary standards, as well as qualification type learning outcomes.

Since first semester 1994, ANU uses a grading scale for all courses. This grading scale is used by all academic areas of the University.

Support for students

The University offers students support through several different services. You may contact the services listed below directly or seek advice from your Course Convener, Student Administrators, or your College and Course representatives (if applicable).

• ANU Health, safety & wellbeing for medical services, counselling, mental health and spiritual support
• ANU Diversity and inclusion for students with a disability or ongoing or chronic illness
• ANU Dean of Students for confidential, impartial advice and help to resolve problems between students and the academic or administrative areas of the University
• ANU Academic Skills and Learning Centre supports you make your own decisions about how you learn and manage your workload.
• ANU Counselling Centre promotes, supports and enhances mental health and wellbeing within the University student community.
• ANUSA supports and represents undergraduate and ANU College students
• PARSA supports and represents postgraduate and research students