FIN205 Business Valuation

This subject provides students with practical knowledge of the issues involved in the valuation of a business and its equity. This firstly includes a fundamental understanding of the activities of the business and the reasons for undertaking the valuation. These issues are explored before various valuation methodologies are outlined and demonstrated. The technical and practical issues involved in valuation are discussed, as are the limitations of the various methodologies and the qualitative issues that may affect them. Students practically apply this knowledge by conducting their own analysis and valuation of a company as part of their assessment tasks.

For more information, please refer to the subject outline.

  • Learning outcomes
    • On successful completion of this subject, individuals should be able to:

      1. Evaluate the qualitative factors that impact a business and its industry.
      2. Apply earnings capitalisation multiples and other common valuation methodologies to value businesses and securities.
      3. Analyse the results of a valuation of a business or equity securities.
      4. Evaluate advanced business valuation issues such as tax implications, real options and intangibles.
      5. Assess the valuation of businesses based on level of control and tradeability.
      6. Assess the use of value-based techniques in valuing a business.
  • Subject content
    • Topic Title
      Topic 1 Introduction to business valuation
      Topic 2 DCF: issues in valuation
      Topic 3 Earnings capitalisation and other valuation methods
      Topic 4 Accounting and taxation issues
      Topic 5 Valuing portfolio and controlling interests
      Topic 6 Real options
      Topic 7 Valuation of intangible assets
      Topic 8 Valuation of small private companies
      Topic 9 Value-based analysis

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

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

  • Assumed knowledge
    • Whilst there are no prerequisites for this subject, Kaplan assumes that individuals have completed FIN202 Fundamentals of Asset Valuation or understand the content covered in this subject, prior to undertaking FIN205 Business Valuation.

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

      • FIN224 Applied Valuation
      • E102 Applied Valuation
  • Reading list
    • There is no prescribed text for this subject.

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