FIN202 Fundamentals of Asset Valuation

This subject focuses on the basic principles of asset valuation, including the difference between price and value, and the purpose of valuing assets. It also explores valuation methodologies, and how they may be used in the valuation of asset classes such as equity, debt, property, hybrid and derivative securities. To cement their understanding of these concepts, students review valuation examples, then perform their own valuations using detailed fictitious case studies to provide practical recommendations based on the outcomes.

 

For more information, please refer to the subject outline.

For Study Period 3 2020 onwards, please refer to the subject outline here.

  • Learning outcomes
    • On successful completion of this subject, individuals 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
    • 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

      * Topic 10 (Independent expert reports) will be taught in FIN290 Business Valuation Application from Study Period 3 2020.

  • Duration
    • The duration of this subject is one study period (12 weeks).

  • Assessment
  • Prerequisites
    • There are no prerequisites for this subject. However please review the Assumed Knowledge tab to understand the prior knowledge Kaplan advises you should hold before enrolling in this subject.

  • Assumed knowledge
    • Whilst there are no prerequisites for this subject, Kaplan assumes that individuals have completed FIN201 Quantitative Applications in Finance or understand the content covered in this subject, prior to undertaking FIN202 Fundamentals of Asset Valuation.

  • Course transition subject equivalence
    • Individuals may not be required to complete this subject if they’ve transitioned from a SIA/Finsia/Kaplan Professional course and have completed the following subjects:

      • There are no equivalences for this subject
  • Reading list
    • There’s no prescribed text for this subject.

      Individuals are provided with key readings and access to Kaplan Professional’s online databases. Individuals are encouraged to research and read widely on the topic.