EQUITY INVESTMENT ANALYSIS - 2021/2

Module code: MANM318

Module Overview

The module examines the various approaches to equity investment analysis, providing a systematic understanding of the challenges faced and the decisions to be taken when analyzing and valuing corporate equity. It encompasses the principles and practice of valuation of companies’ shares. This is examined from several aspects; industry analysis, company analysis, valuation methods and the link between valuation and investment style. Real corporate analysis will be undertaken in order to highlight and evaluate the different approaches to investment analysis.

Module provider

Surrey Business School

Module Leader

KARAMPATSAS Nikolaos (SBS)

Number of Credits: 15

ECTS Credits: 7.5

Framework: FHEQ Level 7

JACs code: N321

Module cap (Maximum number of students): N/A

Module Availability

Semester 1

Prerequisites / Co-requisites

None

Module content

Indicative content includes:


  • Equity Valuation

  • Returns

  • Industry and Company Analysis

  • Discounted Dividend Valuation

  • Free Cash Flow Valuation

  • Market Based Valuation

  • Residual Income Valuation

  • Private Company Valuation


Assessment pattern

Assessment type Unit of assessment Weighting
School-timetabled exam/test CLASS TEST (50 MINS) 30
Coursework BLOOMBERG MARKET CONCEPT TRAINING 10
Examination ONE AND A HALF HOUR CLOSED BOOK EXAMINATION 60

Alternative Assessment

Not applicable

Assessment Strategy

The assessment strategy is designed to provide students with the opportunity to demonstrate


  • Knowledge of the role of investment analysis and how to apply the appropriate methods of investment analysis in order to critically evaluate financial opportunities.



Thus, the summative assessment for this module consists of:


  • Bloomberg Market Concepts (BMC) e-learning course modules: Equities and Economics. Completion by week 5.

  • Closed book class test 50 minutes based on the first 4 weeks lectures to be held in week 6

  • A 1 1/2 hour closed book exam covering all topics will be held at the end of the module.



Formative assessment and feedback

Students will receive oral feedback during seminars.

Feedback and guidance will be given via SurreyLearn throughout the module.

The class test provides feedback on theoretical underpinnings and typical calculations giving students an early indication where more work may be required.

 

Module aims

  • Estimate intrinsic value, relative value and a range of financial multiples for corporate equity.
  • Use Bloomberg as an investment tool.
  • Prepare and write an equity research report.

Learning outcomes

Attributes Developed
001 Evaluate the role of investment analysis, the drivers of industry value and the drivers of corporate value. KCPT
002 Explore a wide range of industries and companies using a range of different valuation methodologies. KCPT
003 Estimate intrinsic value, relative value and a range of financial multiples for corporate equity. KCPT
004 Prepare and write an equity research report. KCPT
005 Use Bloomberg as an investment tool. KCPT

Attributes Developed

C - Cognitive/analytical

K - Subject knowledge

T - Transferable skills

P - Professional/Practical skills

Overall student workload

Independent Study Hours: 117

Lecture Hours: 33

Methods of Teaching / Learning

The learning and teaching strategy is designed to:

The teaching and learning strategy is designed to facilitate students understanding of applied finance; how to analyse real companies and industries using a range of theoretical approaches.

The learning and teaching methods include:

The teaching and learning methods includes lectures to establish key principles, seminars to focus on practical application and the use of SurreyLearn to facilitate discussion and distribution of additional materials and data sources.

ELearning via Bloomberg will be used to reinforce key market concepts.

Additional resources such as Company Accounts will be used where appropriate.

Lectures will comprise 2 hours per week for 11 weeks plus 1 hour per week of seminars.

Indicated Lecture Hours (which may also include seminars, tutorials, workshops and other contact time) are approximate and may include in-class tests where one or more of these are an assessment on the module. In-class tests are scheduled/organised separately to taught content and will be published on to student personal timetables, where they apply to taken modules, as soon as they are finalised by central administration. This will usually be after the initial publication of the teaching timetable for the relevant semester.

Reading list

https://readinglists.surrey.ac.uk
Upon accessing the reading list, please search for the module using the module code: MANM318

Programmes this module appears in

Programme Semester Classification Qualifying conditions
International Corporate Finance MSc 1 Compulsory A weighted aggregate mark of 50% is required to pass the module
FinTech and Policy MSc 1 Optional A weighted aggregate mark of 50% is required to pass the module
Investment Management MSc 1 Compulsory A weighted aggregate mark of 50% is required to pass the module

Please note that the information detailed within this record is accurate at the time of publishing and may be subject to change. This record contains information for the most up to date version of the programme / module for the 2021/2 academic year.