Course Content
The focus of this equity research course is very much applied, and it adopts a case-study approach to value stocks and companies using financial statements. Special attention will be dedicated to initial public offerings (IPO) and valuing of young, fast-growing companies. The course also helps students to develop a scientific approach towards fundamental analysis with a view to trading profitably.
Students are invited to work in small groups and value stocks. The course includes a valuation-based IPO game in which students working in small groups are competing to advise on an IPO offering.
Topics covered include:
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Valuation methods;
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Valuation application using Excel (financial modelling)
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Performance analysis and implications for valuation;
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Quality of financial statements and implications for valuation
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Valuations in special settings (IPOs, young and high growing companies)
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Common errors in company valuations;
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Analysis of growth and sustainable earnings
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Relative valuation
Course Outcomes
Students will gain an understanding in valuation techniques through a case study approach.
This course should appeal to students interested in equity research, asset management, corporate finance and strategy consulting. It would also complement course AC215: Business Analysis and Valuation, though this is not a prerequisite.
World-class LSE teaching
The Department of Accounting continues to enjoy a reputation as one of the leading groups in the world for teaching and research on the economic, institutional and organisational aspects of accounting and financial management. The department strives to combine 'global appeal' with a distinctive 'European orientation' in terms of institutional knowledge and affiliations, as well as intellectual traditions.
On this three week intensive programme, you will engage with and learn from full-time lecturers from the LSE.
Texts*
Valuation and Security Analysis, by Beccalli and Frantz, Palgrave Macmillan (2014).
*A more detailed reading list will be supplied prior to the start of the programme
**Course content, faculty and dates may be subject to change without prior notice