BUSN9131 Applied Security Analysis and Valuation

This topic is concerned with the valuation of securities using fundamental and quantitative techniques. Subjects covered include economic and industry analysis, growth and discount rate estimation, discounted cash flow analysis and relative valuation modelling.

This topic aims to provide students with the knowledge, understanding and skills required to conduct in-depth valuation of financial securities. The content covered in this topic is essential for any student seeking a career in funds management or corporate finance. This topic will examine a variety of cornerstone valuation models and analytical techniques that can be used to derive the intrinsic value of publicly traded corporations. Students will learn to apply their knowledge in a practical setting and develop an awareness of the advantages and limitations of different equity valuation models and analytical techniques.

1. Explain and justify the use of different valuation models
2. Identify inputs required for valuation and analysis
3. Estimate a company’s value using free cash flow analysis, relative valuation and asset pricing models
4. Evaluate whether a financial security is mispriced
5. Discuss model limitations and the purpose of sensitivity analysis in asset valuation
6. Work collaboratively and communicate findings via verbal presentations and written assessment items