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FIN103 Financial Analysis and Valuation

This subject introduces students to the fundamentals of financial analysis and the various techniques to analyse company financial statements. The subject reviews the accounting and reporting regulatory framework, examines the components of financial reports and the information they can provide to investors, looks at how corporations are financed and explains dividend imputation. It examines the application of financial ratios and introduces students to fundamental valuation concepts and the process of undertaking a company valuation.

This subject is a core subject.

For more information, please refer to the subject outline.

  • Learning outcomes
    • At the completion of this subject students should be able to:

      • Explain the financial reporting framework, key accounting concepts and the components of financial statements
      • Explain how corporations are financed, the needs of their shareholders and the calculation of dividend returns to various types of shareholders
      • Calculate a company’s working capital, profitability and market performance ratios using its annual report
      • Assess the company’s performance using the results of the financial ratios calculated to make an investment recommendation
      • Explain key valuation concepts and the valuation process.
  • Subject content
    • Topic Title
      Topic 1 Introducing financial analysis and valuation
      Topic 2 Understanding the annual report I
      Topic 3 Understanding the annual report II
      Topic 4 Financing of corporations
      Topic 5 Dividend imputation
      Topic 6 Corporate accounts – working capital ratios
      Topic 7 Corporate accounts – profitability ratios
      Topic 8 Corporate accounts – market performance ratios
      Topic 9 An introduction to valuation

  • Assessment
    • Study Period 6 2016

      Assessment Type Assessed Weighting
      Assignment 1 Week 4 15%
      Assignment 2 Week 6 35%
      Assignment 3 Week 12 50%

      For Study Period 6 2016 Assignment 2 will be due at the end of Week 6. This is due to the Christmas period closure.

      Click here for an assessment timetable.

       

      Study Period 1-6 2017

      Assessment Type Assessed Weighting
      Assignment 1 Week 4 15%
      Assignment 2 Week 7 35%
      Assignment 3 Week 12 50%

      Click here for an assessment timetable.

  • Prerequisites
    • Whilst there are no prerequisites for this subject, students are expected to be able to use basic financial maths in a variety of financial contexts. To test and refresh your maths knowledge click the link below:

      Basic Financial Maths

  • Course transition subject equivalence
    • Students who transition from a SIA/Finsia/Kaplan course and have completed the following subject within the course completion time frame may not also complete this subject:

      • FIN113 Techniques in Financial Analysis
      • C2 Financial Analysis and Valuation
  • Reading list
    • There are no prescribed texts for this subject.

      Details of any required and further readings for this subject are provided in the subject room.  Purchase of any text other than a prescribed text is not required.