Financial Analysis and Valuation

This subject has the following teaching availabilities in 2015:

For the purposes of considering request for Reasonable Adjustments under the Disability Standards for Education (Cwth 2005), and Student Support and Engagement Policy, academic requirements for this subject are articulated in the Subject Overview, Learning Outcomes, Assessment and Generic Skills sections of this entry.

It is University policy to take all reasonable steps to minimise the impact of disability upon academic study, and reasonable adjustments will be made to enhance a student's participation in the University's programs. Students who feel their disability may impact on meeting the requirements of this subject are encouraged to discuss this matter with a Faculty Student Adviser and Student Equity and Disability Support: http://services.unimelb.edu.au/disability

This subject examines the use of financial statements for the analysis and valuation of companies. The framework employed incorporates four key components: (1) an analysis of the company’s operating environment and the strategies it employs; (2) an assessment of the quality of the company’s financial reports, including making any necessary adjustments; (3) forecasting future performance and cash flows; and (4) estimating a value for the company. Several valuation approaches are covered including the use of valuation multiples. And present value-based techniques.

On completion of this subject, students should be able to:

• Understand and be able to apply the primary approaches available to value firms.
• Have an improved ability to link valuation to the strategic, accounting and financial analyses of firms.
• Be able to apply these analysis tools in a variety of decision settings.

• Syndicate case write-ups (50%)
• 1 per week
• Final examination (50%)
• Take home over 4 days
• End of subject

This subject is not available as a breadth subject.