Module: Equity Case Study

Latest Module Specifications

Current Academic Year 2025 - 2026

Module Title	Equity Case Study
Module Code	FBA1015 (ITS: EF510)
Faculty	DCU Business School	School	DCU Business School
NFQ level	9	Credit Rating	5

Description

To ensure that students can draw on the diverse elements of the programme to undertake a systematic investment appraisal of a listed company within a macro-economic and sectoral framework.

Learning Outcomes

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2. Identify key factors that determine the profitability of an industry and evaluate its outlook
5. 1
6. 1D646A89-A7F1-0001-C0EA-1B1116F01BCA
7. Assess a company's position within its competitive environment and identify viable strategies
10. 2
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12. Determine the profit drivers, construct divisional forecasts and develop a financial model for the whole company
15. 3
16. 1D646A89-B6E2-0001-5D29-72134F801BE9
17. Apply valuation techniques in a critical manner to quoted companies
20. 4
21. 1D646A89-BBE6-0001-8457-2644C0BE7760
22. Prepare an investment report that will assess, analyse and articulate a company's outlook and value
25. 5

*Type*	*Hours*	*Description*
Workload	Full time hours per semester
Lecture	30	The lecturer will present the essential ideas and core concepts, pointing students towards resources where they can get further information.
Assignment Completion	48	Group project on a topic approved by the Lecturer.
Independent Study	47	Preparation for lectures and assigned readings.
Total Workload: 125

Section Breakdown
CRN	10682	Part of Term	Semester 1
Coursework	100%	Examination Weight	0%
Grade Scale	40PASS	Pass Both Elements	N
Resit Category	RC1	Best Mark	N
Module Co-ordinator	Seyed Aref Mahdavi Ardekani	Module Teacher

Type	Description	% of total	Assessment Date
Assessment Breakdown
Assignment	Group project	30%	Week 10
Assignment	Individual project	20%	Week 10
Written Exam	End-of-Semester Final Examination	50%	n/a

Reassessment Requirement Type
Resit arrangements are explained by the following categories; RC1: A resit is available for both^* components of the module. RC2: No resit is available for a 100% coursework module. RC3: No resit is available for the coursework component where there is a coursework and summative examination element. ^* ‘Both’ is used in the context of the module having a coursework/summative examination split; where the module is 100% coursework, there will also be a resit of the assessment

Pre-requisite	None
Co-requisite	None
Compatibles	None
Incompatibles	None

All module information is indicative and subject to change. For further information,students are advised to refer to the University's Marks and Standards and Programme Specific Regulations at: http://www.dcu.ie/registry/examinations/index.shtml

Indicative Content and Learning Activities

1.
An introduction to the course that provides students with a brief summary of topics covered along with key disciplines used to analyse companies. This enables students to participate in Group projects on company analysis from the start of the programme.

2.
Corporate strategy. A review of the theory of corporate strategy, especially as espoused by Michael E. Porter and its application to case studies, mainly from Irish quoted companies.

3.
Financial Analysis 1: Analysis of historic performance of companies, covering summary financial statements, divisional analysis and financial ratios.

4.
Financial Analysis 2: Analysis of a company having regard to its cost of capital and returns on capital. This is evaluated from the perspective of shareholders and also from the perspective of the total enterprise. The advantages and drawbacks of each approach is discussed.

5.
Financial Analysis 3: Techniques to make financial forecasts for companies – from divisional profit forecasts through to earnings per share. The focus is on how, as an external analyst, one can gauge the growth rate for a company having regard to all external and internal influences. In addition, micro analysis allows one to estimate margin progression, finance and tax charges, thereby building up a comprehensive picture of a company’s financial outlook.

6.
Financial Analysis: Case studies to illustrate analytic techniques.

7.
Company Valuation Techniques 1: Relative valuations. How to use comparisons with other quoted companies to evaluate a fair value for a company.

8.
Company Valuation techniques 2: Using target valuation multiple. The application of valuation theory to determine the fair value for a company having regard to its fundamental cost of capital and returns on capital. The resulting analysis produces, for example a theoretical Price earnings ratio or Enterprise Valuation multiple for the company being analysed.

9.
Company Valuation Techniques 3: Absolute Valuation Techniques; Use of various Discounted Cash Flow methods, including Firm Cash Flow, Excess Returns Model, Free Cash Flow to Equity (FCFE), and Dividend Discount model.

10.
Analysing Financial Companies 1: Analysing a bank’s performance and prospects. Regulation and its impact on how banks operate.

11.
Analysing Financial Companies 2: Approaches to bank valuation and how to apply valuation techniques to banks and insurance companies.

12.
Summary of course material.

Indicative Reading List

Books:

0: Porter, Michael E. (1998). Competitive Strategy: Techniques for Analyzing Industries and Competitors, 1st Edition. The Free Press: New York, 1729622
0: Damodaran, Aswath (1996). Investment Valuation: Tools and Techniques for Determining the Value of Any Asset, 3rd Edition. John Wiley & Sons Inc.: USA, 1729623
0: English, James (2001). Applied Equity Analysis: Stock Valuation Techniques for Wall Street Professionals, 1st Edition. McGraw-Hill: USA, 1729624
0: McKinsey & Company Inc., Koller, Tim, Goedhart, Marc, Wessels, David (2010). Valuation: Measuring and Managing the Value of Companies, 5th Edition. John Wiley & Sons: Hoboken,

Articles:
None

Other Resources

None