Investment Analysis 2
Investment Analysis II aims to take the valuation techniques developed and appraised in Investment Analysis I (BEAM032) and apply them to the valuation of equities in major industrial sectors. This variety of geographic, industrial and other specialised circumstances requires careful selection of appropriate valuation methods and the interpretation of different standards of financial reporting and disclosure.
Research in Teaching
The whole module is informed by academic research, in particular by the module lead.
Full module specification
|Module title:||Investment Analysis 2|
BEAM032 Investment Analysis 1
|Duration of module:||
Duration (weeks) - term 2: |
Investment Analysis 2 aims to take the valuation techniques developed and appraised in Investment Analysis (BEAM032 and to apply them to the valuation of equities in major industrial sectors. This variety of geographic, industrial and other specialised circumstances requires careful selection of appropriate valuation methods and the interpretation of different standards of financial reporting and disclosure. Ultimately the aim is to give students the ability to produce equity research reports to professional standards.
ILO: Module-specific skills
- 1. apply selectively and critically 'new' value enhancement and valuation paradigms
- 2. understand the proper focus of investment analysis in the modern equity environment
- 3. understand and respond creatively to cross-border financial analysis in industrial sectors
- 4. apply selectively traditional risk measures
- 5. identify and discuss ethical issues affecting corporate operations and reporting
ILO: Discipline-specific skills
- 6. review and select appropriate analytical techniques
- 7. access and critically review research reports and other data sources
- 8. draw well-defined and supported conclusions when analysing a complex and specialised problem.
ILO: Personal and key skills
- 9. as an individual to present complex, technical reports.
Learning activities and teaching methods (given in hours of study time)
|Scheduled Learning and Teaching Activities||Guided independent study||Placement / study abroad|
Details of learning activities and teaching methods
|Category||Hours of study time||Description|
|Contact hours||11||Practical classes|
|Form of assessment||Size of the assessment (eg length / duration)||ILOs assessed||Feedback method|
|Mock examination||2 hours||1-9||Exam grade and written feedback on ELE|
Summative assessment (% of credit)
|Coursework||Written exams||Practical exams|
Details of summative assessment
|Form of assessment||% of credit||Size of the assessment (eg length / duration)||ILOs assessed||Feedback method|
|Examination||100||2 hours||1-9||Exam grade and written feedback on ELE|
Details of re-assessment (where required by referral or deferral)
|Original form of assessment||Form of re-assessment||ILOs re-assessed||Timescale for re-assessment|
|Examination||Examination (100%) 2 hours||1-9||Aug/Sep|
- Equity valuation approaches including earnings, dividends, cash generation and value investing.
- Contemporary methods of operationalising the FCF model.
- Earnings forecasts, business environment analysis and technical analysis.
- The weighted average cost of capital and implied cost of equity capital.
- Value drivers and competitive strategy – Industry analysis; Company analysis and stock selection.
- Market efficiency implications for investment analysis and estimation of cost of equity capital.
Indicative learning resources - Basic reading
- K. Palepu, P. Healy, V. Bernard, and E. Peek (2015, Business Analysis and Valuation, IFRS edition (third edition), text only; Cengage Learning Business Press.
- T Copeland, T Koller, J Murrin, McKinsey & Co Inc, 2013, Valuation-Measuring and Managing Value of Companies, 5th ed., Wiley
- Alan Gregory, Strategic Valuation of Companies, 2nd Edition., Financial Times
- Lundholme R and R Sloan, Equity Valuation and Analysis, 2nd edition, Mc Graw-Hill Irwin
Module has an active ELE page?
Last revision date