AC444 Half Unit
Valuation and Security Analysis
This information is for the 2025/26 session.
Course Convenor
Dr Pascal Frantz
Dr Xi Li
Availability
This course is available on the CEMS Exchange, Global MSc in Management, Global MSc in Management (CEMS MIM), Global MSc in Management (MBA Exchange), MBA Exchange, MSc in Accounting and Finance, MSc in Accounting, Organisations and Institutions, MSc in Finance and Risk and MSc in Management and Strategy. This course is available with permission as an outside option to students on other programmes where regulations permit. This course uses controlled access as part of the course selection process.
This course uses controlled access as part of the course selection process. In previous years, we have been able to accommodate all students that apply but that may not continue to be the case.
Students will be admitted on a first-come-first-served basis, with priority given to MSc Accounting and Finance and MSc Accounting, Organisations and Institutions programmes who apply during the Autumn Term.
Other students who meet the eligibility criteria are likely to be offered a place, but this cannot be guaranteed.
To maximise your chances of securing a place, we strongly recommend selecting this course during initial course selection in the Autumn Term.
For queries contact: Dot Richards, PG Programme Manager. Department of Accounting d.richards@lse.ac.uk
Requisites
Additional requisites:
Students will be assumed to have a solid understanding of corporate finance as well as financial accounting principles, techniques and methods. Completion of AC416 in Michaelmas term is recommended for this course.
Course content
The aim of this course is to introduce students to security analysis and valuation from both academic and practical perspectives. The course materials include many real-world cases, where students are placed in the role of investors to conduct financial statement analysis and make investment decisions. At the end of the course, students are furthermore provided with an opportunity to apply their skills by analysing and valuing, in small groups, from the point of view of a "sell-side analyst", a firm’s equity of their choice. The course should appeal to students interested in equity research, investment banking, and fund management.
The course is presented in two parts. The first part, financial analysis, focuses on past and present performance evaluation, which is used by financial analysts to generate expectations about future performance (prospective analysis). The second part, security valuation, focuses on the determination of intrinsic security prices, which, in efficient markets, reflect prospective performance. This second part provides students with a valuation ‘toolkit’ which they can draw on when valuing equities in a variety of contexts such as banking, asset management, research, accountancy or consulting.
Teaching
30 hours of seminars in the Winter Term.
This course has a reading week in Week 6 of Winter Term.
Teaching is delivered over 10 weeks in two 90-minute sessions per week, with student group project presentations in week 11 of Winter Term. There is a reading week in week 6. Each session involves both lecturing and case study analyses and discussions. In the case study sessions, students break into small groups to work and collaborate as a team. This mode of teaching requires good advance preparation by the students; hence, every student should be ready to contribute to the discussion when called upon. Active participation is expected and encouraged.
Indicative reading
For the business analysis section, there is no required textbook for this course. However, we recommend the following book for reading and additional exercises: Business Analysis & Valuation (Palepu, Healy and Peek), 6th IFRS edition, CENGAGE Learning, 2022.
Assessment
Exam (55%), duration: 120 Minutes in the Spring exam period
Quiz (5%)
Project (40%)
Key facts
Department: Accounting
Course Study Period: Winter Term
Unit value: Half unit
FHEQ Level: Level 7
CEFR Level: Null
Total students 2024/25: 145
Average class size 2024/25: 48
Controlled access 2024/25: NoCourse selection videos
Some departments have produced short videos to introduce their courses. Please refer to the course selection videos index page for further information.
Personal development skills
- Self-management
- Team working
- Problem solving
- Communication
- Application of numeracy skills
- Specialist skills