FIN322 Industrial Equity Analysis

This subject focuses on the role of an equity analyst and the tools and methods they use to prepare a broker’s report to value a given company. This includes discussion of financial models used in equity analysis, and then a detailed examination of equity analysis in different market sectors, including retail, health care, media, infrastructure, and banking. Individuals analyse these different industry sectors and the strategies of companies within them, and build a financial model to judge a company’s operational and financial performance.

This subject contributes to the investment analysis major.

For more information, please refer to the subject outline.

For Study Period 5 2021 onwards, please refer to the subject outline here.

 

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

      1. Explain the fundamental tools and critical information needed and the processes and practices used to analyse and report on a company and its industry.
      2. Explain the importance of industry positioning, competitive advantage and corporate strategy when analysing companies.
      3. Assess the impact of key quantitative and qualitative data on industrial equity stocks.
      4. Judge a company’s operational and financial performance via comparison with benchmarks and peer analysis.
      5. Construct a basic financial model of a company.
      6. Compose a report on the analysis of a company including financial ratio analysis.
      7. Evaluate key sectors within the industrial equities market, with a focus on the critical issues and key drivers of shareholder value.

       

      For Study Period 5 2021 onwards

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

      1. Critically analyse the industry positioning, competitive advantage and corporate strategy of a company using fundamental tools, industry practices and research.
      2. Determine the impact of key quantitative and qualitative data on industrial equity stocks.
      3. Evaluate operational and financial performance of a company using industry standards benchmarks and peer analysis.
      4. Construct a financial model of a company incorporating advanced financial modelling techniques.
      5. Create a report on the analysis of a company performance, including financial ratios, that can be used to make investment decisions.        
      6. Evaluate key sectors within the industrial equities market, with a focus on the critical issues and key drivers of shareholder value.
  • Subject content
    • Topic Title
      Topic 1 The analyst’s world
      Topic 2 Analysing non-financial factors
      Topic 3 Building a basic financial model
      Topic 4 Introducing complexity to a financial model
      Topic 5 Equity market sectors
      Topic 6 Retail
      Topic 7 Health care
      Topic 8 Media
      Topic 9 Infrastructure
      Topic 10 Banking

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

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

      For Study Period 5 2021 onwards

      Assessment Type Assessed Weighting
      Assignment 1 Week 4 20%
      Assignment 2 Week 7 40%
      Examination Week 12 40%

      Click here for an assessment timetable.

       

       

  • 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 FIN203 Fundamentals of Equity Markets and FIN205 Business Valuation, or understand the content covered in those subjects, prior to undertaking FIN322 Industrial Equity Analysis.

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

      • E131 Industrial Equity Analysis
      • FIN222 Industrial Equity Analysis
  • Reading list
    • There are no prescribed texts 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.