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FIN202 Fundamentals of Asset Valuation

This subject introduces the basic principles of asset valuation. It explores asset pricing theory in an effort to understand the pricing or values of assets and the role of uncertainty and risk. The subject considers the valuation of many asset classes including equity, debt and derivative securities.

This subject contributes to the investment management, financial analysis and corporate finance majors.

For more information, please refer to the subject outline.

  • Learning outcomes
    • The following learning outcomes apply to Study Period 4 2016 onwards. If you are in a previous study period, please refer to your subject room

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

      1. Explain the concept of valuation and the purpose of valuing assets.
      2. Construct a valuation based on the discounted cash flow valuation method.
      3. Explain capital market theory and other pricing theories.
      4. Analyse the determinants of the pricing of debt securities.
      5. Analyse how hybrids provide flexibility for management.
      6. Explain the basic principles in pricing futures and options.
      7. Evaluate valuation techniques for real estate assets
  • Subject content
    • The following subject content applies to Study Period 4 2016 onwards. If you are in a previous study period, please refer to your subject room.

      Topic Title
      Topic 1 Introduction to asset pricing and valuation
      Topic 2 Discounted cash flow
      Topic 3 Capital market theory
      Topic 4 Other pricing models
      Topic 5 Pricing debt securities
      Topic 6 Hybrid securities and convertible notes
      Topic 7 Property valuation
      Topic 8 Pricing derivatives
      Topic 9 Pricing options
      Topic 10 Independent expert reports

  • Assessment
  • Prerequisites
    • Students enrolling in a Masters level elective subject are assumed to have the pre-requisite knowledge in the three core subjects (FIN101, FIN102, and FIN103).

  • 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.