DCU Home | Our Courses | Loop | Registry | Library | Search DCU

Registry

Module Specifications

Archived Version 2022 - 2023

Module Title Equity Case Study
Module Code EF510
School DCUBS

Online Module Resources

NFQ level 9 Credit Rating 5
Pre-requisite None
Co-requisite None
Compatibles None
Incompatibles None
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

1. Identify key factors that determine the profitability of an industry and evaluate its outlook
2. Assess a company's position within its competitive environment and identify viable strategies
3. Determine the profit drivers, construct divisional forecasts and develop a financial model for the whole company
4. Apply valuation techniques in a critical manner to quoted companies
5. Prepare an investment report that will assess, analyse and articulate a company's outlook and value



Workload Full-time hours per semester
Type Hours Description
Lecture30The lecturer will present the essential ideas and core concepts, pointing students towards resources where they can get further information.
Assignment Completion48Group project on a topic approved by the Lecturer.
Independent Study47Preparation for lectures and assigned readings.
Total Workload: 125

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.

Assessment Breakdown
Continuous Assessment100% Examination Weight0%
Course Work Breakdown
TypeDescription% of totalAssessment Date
Reassessment Requirement
Resit arrangements are explained by the following categories;
1 = A resit is available for all components of the module
2 = No resit is available for 100% continuous assessment module
3 = No resit is available for the continuous assessment component
Unavailable
Indicative Reading List

  • 0: Porter, Michael E. (1998). Competitive Strategy: Techniques for Analyzing Industries and Competitors, 1st Edition. The Free Press: New York, 122340
  • 0: Damodaran, Aswath (1996). Investment Valuation: Tools and Techniques for Determining the Value of Any Asset, 3rd Edition. John Wiley & Sons Inc.: USA, 122341
  • 0: English, James (2001). Applied Equity Analysis: Stock Valuation Techniques for Wall Street Professionals, 1st Edition. McGraw-Hill: USA, 122342
  • 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,
Other Resources

None
Programme or List of Programmes
MITBMSc in Investment, Treasury & Banking
Archives: