ØABED4100 Valuation - Equity Research Course description

The course covers advanced valuation techniques used for thorough modeling of a firm's value. The aim is to provide students with advanced knowledge and in-depth understanding of the concepts behind fundamental value, and the underlying assumptions in order to sensibly apply their existing theoretical understanding of valuation. The course will be relevant for students seeking a career in equity research, investment banking, management consulting, and larger corporations in Norway and internationally.

None, but an advantage to take together with Corporate Finance and Statistic Methods

None

Upon completion of the course, the candidate shall:

- have obtained an advanced and integrated understanding of fundamental drivers of value, and valuation techniques.

- have implemented and understood the use of this knowledge in practical settings.

- be able to apply the main valuation techniques to real companies, to form an informed opinion as to the fair value of a company.

- have increased competence in presenting and discussing complex corporate valuation issues in a challenging context.

- be able to take complex financial information and distil from this the information important for valuation.

- have confidence in conducting clear, written analyzes and presentation of fair value of a corporation or project towards investors, top management and board of directors.

- have completed demanding case work and presentations as constructive members of a student group.

- understand the need for a substantial effort and high precision needed to excel in a demanding roles of equity research analysts, management consultants or investment bankers.

The course consists of four blocks, each consisting of lectures, a multiple choice test, a group handin and presentation of the casework. Students will work in groups of three on one case company throughout the course. The only exception would be if the number of students is not divisible by 3, which would result in one or two groups consisting of two students. This course is an advanced and applied valuation course. In order to achieve maximum learning potential, the course is entirely case based, which means extensive casework on the part of the students. One or more industries will be selected, depending on the number of students/groups. The number of industries will be restricted to a minimum of 3 or more groups working in the same industry in order to enable comparable analysis within industry, and induce interest for in class discussions of their casework. An industry covered the previous year is not accessible the following year (exception may apply). Each student group will work on one listed company throughout the course, and will share their model(s) with other groups also covering the same industry in order to create an opportunity to conduct comparable analysis between case firms within industries. All teaching will be followed up by an online multiple choice test of the material covered in the lectures, available for a limited time following each block of lectures. These tests will carry points towards the final grade, but are not individually mandatory. They are there to incentivize students to review the lecture material before working on their case. The student groups will have to hand in multiple reports and spreadsheet models (with 'user manuals'), as well as conduct discussions (within industry group) of modeling issues. Students will present their casework 3 times, before finally issuing an "Analyst Report" and "Pitch" (final presentation of) their "Investment Case" (BUY/HOLD/SELL) to "investors" (the class).

Students that are unable to fulfill any elements by posted deadlines, must agree with the lecturer beforehand as a general rule.

In order to be able to register for the exam, the student must have the following approved work requirements:

All lectures, hand-ins and presentations are mandatory.

If the assignments are not approved, the student will be given one opportunity to submit a new or improved version. Further information regarding submission and due dates will be provided during the semester.

The exam will consist of three equally weighted elements, that will result in one final grade:

1) The portfolio of Casework (4x handins), where the Final Report weighs the most

2) The (4x) Multiple Choice Tests

3) (4x) Class Presentations (10min)

The deferred exam will be held as an individual oral exam with an internal and external examiner. The candidate will prepare an assignment before the exam (approved by the course professor), which then will be the basis for a discussion of the course syllabus.

All reference aids are allowed as long as the rules for source references are followed.

Grading scale A to F.

Grading will be done by an external and internal examiner for the written elements of the course.