ØABED4100 Valuation - Equity Research Emneplan

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 to sensibly apply their existing theoretical understanding of valuation. The goal is no longer to calculate a price, but to build a model to understand how different assumptions or potential future events impact the value of the firm. The course will be relevant for students seeking a career in equity research, investment banking, management consulting, and larger corporations in Norway and internationally.

Gradert skala A - F

None

After completing the course, the student should have the following overall learning outcomes defined in terms of knowledge, skills and general competence:

Knowledge

The student has

• obtained an advanced and integrated understanding of fundamental drivers of value, and valuation techniques
• implemented and understood the use of this knowledge in practical settings

Skills

The student

• is able to apply the advanced valuation techniques to real companies, to form an informed opinion as to the fair value of a company
• has increased competence in presenting and discussing complex corporate valuation issues in a challenging context
• is able to take complex financial information and distil them into relevant information for the valuation process
• is able to confidently present the findings of their analysis verbally and in written and presentation of the fair value of a corporation or project towards investors, top management, and board of directors

General competence

The student

• has completed demanding case work and presentations as constructive members of a student group
• can produce alternative methods or resolve discrepancies and argue why they are good solutions to the problem

The students require a lot of practice to develop their analytical abilities. The subject matter is taught through ordinary lectures, guest lectures, group hand-ins and presentation, as well as discussions relating to case exercises.

The Course is taught around 4 "blocks", where the first 3 hand-ins are steppingstones to the final report and presentation. Each student group has one case company throughout the course. Each block has the same structure of lectures/discussions, quiz, case work, presentation with feedback. This gives the students a piecemeal approach to the process of analyzing and valuing a publicly listed company.

The students will be given feedback on their Presentation, Writing and Typography skills in relation to their reports and presentations of their case company. The final report and presentation will partly be graded on how convincing, understandable, and well argued the report and presentation are. Succinctly arguing your findings is therefore essential.

The teaching is coordinated with ØABED3700.

The following coursework requirements must have been approved for the student to take the exam:

• Coursework 1: Buy-side analysis
  • Consists of an individual online quiz, and a written report (6 pages) and oral presentation (10 min + 10 min feedback) carried out in groups
• Coursework 2: Analyzing Performance
  • Consists of an individual online quiz, and a written hand-in (spreadsheet/slides with analysis + log) and oral presentation (10 min + 10 min feedback) carried out in groups
• Coursework 3: Forecasting Performance
  • Consists of an individual online quiz, and a written hand-in (spreadsheet/slides with analysis + log) and oral presentation (10 min + 10 min feedback) carried out in groups

Each group is assigned a separate publicly listed case company within a common industry for 3-5 other groups in the class. The case company assigned to a group is analyzed throughout all coursework and is the subject of the final report and presentation for that group.

The coursework requirements will be carried out in groups of 3 students, except for one or two groups of 2 if the number of students is indivisible by 3. These group stay the same throughout the coursework and exam. Changes will be done in agreement with the lecturer on a case-by-case bases.

The aim of the coursework requirements is to work systematically towards producing the content necessary for a good final report and presentation.

All required coursework must be completed and approved by the given deadline for the student to take the exam. If one or more coursework requirements have not been approved, the student will be given one opportunity to submit an improved version by the given deadline.

Det vil bli brukt varierte undervisningsformer med en kombinasjon av forelesninger, diskusjoner i klassen og praktiske øvinger på PC.

For å kunne framstille seg til eksamen må studenten ha følgende godkjente arbeidskrav:

• Arbeidskrav: Tre skriftlige innleveringer på 4-7 sider hver. Innleveringene fordeles utover semesteret. Hver innlevering går ut på å gjennomføre og tolke kvantitative analyser i tråd med temaer som et gjennomgått på forelesningene. Arbeidskravene leveres i grupper på 3-4 deltakere.

Formålet med arbeidskravene er å gi erfaring med å gjøre egne dataanalyser og tolke resultatene av disse for å belyse en problemstilling.

Arbeidskravene må være gjennomført og godkjent innen fastlagt frist for at studenten skal kunne framstille seg til eksamen. Dersom et eller flere arbeidskrav ikke blir godkjent, gis det anledning til å kunne levere en forbedret versjon én gang innen angitt frist.

Eksamen i emnet er en skoleeksamen på 4 timer.

Følgende hjelpemidler er tillatt:

• Kalkulator (se programplan for regler som gjelder bruk av kalkulator)

Det benyttes intern og ekstern sensor til sensurering av besvarelsene.

Et uttrekk på minst 25 % av besvarelsene sensureres av to sensorer. Karakterene på disse samsensurerte besvarelsene skal danne grunnlag for å fastsette nivå på resten av besvarelsene.