FIN205 Business Valuation

This subject provides students with a working knowledge of the issues involved in the valuation of a business and its equity. Fundamental to any valuation is an understanding of the activities of the business and the reasons for undertaking the valuation. These issues are explored before the 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. However, purely looking at the numbers calculated is not enough and this subject provides an appreciation of the qualitative issues that may affect a valuation.

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

For more information, please refer to the subject outline.

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

      1. Evaluate the qualitative factors that impact a business and its industry.
      2. Apply earnings capitalisation multiples and other methodologies used to value businesses and securities.
      3. Analyse the results of a valuation of a business or equity securities.
      4. Compare the differences between corporate valuations and portfolio interest valuations.
      5. Recommend appropriate shareholder value techniques to value a company.
      6. Explain the application of valuation techniques on intangible assets.
      7. Evaluate the qualitative factors that affect valuations.
  • 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

  • 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).

      Kaplan recommends that you complete the following Kaplan online subject (or have a thorough working knowledge of the content) prior to enrolling in this unit:

  • 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 the subject:

      • FIN224 Applied Valuation
      • E102 Applied 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.