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MN30626: Financial statement analysis and security valuation

[Page last updated: 15 October 2020]

Follow this link for further information on academic years Academic Year: 2020/1
Further information on owning departmentsOwning Department/School: School of Management
Further information on credits Credits: 6      [equivalent to 12 CATS credits]
Further information on notional study hours Notional Study Hours: 120
Further information on unit levels Level: Honours (FHEQ level 6)
Further information on teaching periods Period:
Semester 2
Further information on unit assessment Assessment Summary: CW 100%
Further information on unit assessment Assessment Detail:
  • Coursework (CW 100%)
Further information on supplementary assessment Supplementary Assessment:
Like-for-like reassessment (where allowed by programme regulations)
Further information on requisites Requisites: Before taking this module you must take MN10476 OR take MN10566 OR take MN10077
In taking this module you cannot take MN20547
Description: Aims:
The aims of this unit are to:
1. Provide students with the tools to analyse firm financial performance from an equity valuation perspective
2. Enable students to value the equity of a firm using a range of methods
3. Enable students to critique a range of equity valuation methods

Learning Outcomes:
On completion of this unit students should be able to:
1. Understand a range of equity valuation approaches and models
2. Value the equity of a firm using appropriate methods
3. Prepare a thorough valuation analysis including sensitivity analysis on key assumptions

Skills:
Intellectual skills
* Use appropriate financial analysis and computational techniques to compute financial information which is useful in valuing equity
* Evaluate and assess the relative merits of different equity valuation methods
* Identify financial information and analytical techniques relevant to a particular purpose
* Interpret the results of analysis in a manner pertinent to a specified problem/objective
Professional/Practical Skills
* Recommend courses of management action based on an assessment of financial data, i.e. whether to buy, sell or hold the equity of a firm
* Construct relevant financial analysis in a format suitable for general readership;
Transferable/Key Skills
* Applying a range of quantitative analysis techniques in a variety of business cases
* Applying modelling and spreadsheet skills to performance analysis and valuation problems
* Critical skills in the application of techniques and the interpretation of results

Content:
1. Understanding financial statements
2. The context of financial statement analysis e.g. the work of an equity financial analyst
3. The links between share prices and accounting data
4. Earnings quality
5. Relative valuation methods - P/E etc
6. Dividend valuation
7. Residual income valuation
8. Valuation using free cash flows and WACC
9. Adjusted present Value
10. Valuation case studies
Further information on programme availabilityProgramme availability:

MN30626 is Optional on the following programmes:

School of Management
  • UMMN-ANB01 : BSc(Hons) Business Administration with Thin sandwich placement(s) (Year 4)
  • UMMN-AYB06 : BSc(Hons) International Management with Year Abroad (Year 4)
  • UMMN-AFB04 : BSc(Hons) Management (Year 3)
  • UMMN-AKB04 : BSc(Hons) Management with Year long work placement (Year 4)
  • UMMN-AKB05 : BSc(Hons) Management with Marketing with Year long work placement (Year 4)
Department of Politics, Languages and International Studies
  • UXXX-AYB05 : BSc(Hons) International Management and Modern Languages (French) with Year Abroad (Year 4)
  • UXXX-AYB04 : BSc(Hons) International Management and Modern Languages (German) with Year Abroad (Year 4)
  • UXXX-AYB06 : BSc(Hons) International Management and Modern Languages (Spanish) with Year Abroad (Year 4)

Notes: