EQUITY INVESTMENT ANALYSIS - 2017/8
Module code: MANM318
Surrey Business School
MASON A Dr (SBS)
Number of Credits
FHEQ Level 7
Module cap (Maximum number of students)
Overall student workload
Lecture Hours: 32
|Assessment type||Unit of assessment||Weighting|
|School-timetabled exam/test||CLASS TEST||30%|
|Coursework||BLOOMBERG MARKET CONCEPT TRAINING||20%|
|Examination||ONE AND A HALF HOUR CLOSED BOOK EXAMINATION||50%|
Prerequisites / Co-requisites
The module studies the various approaches to equity investment analysis, providing a systematic understanding of the challenges faced and the decisions to be taken when analysing and valuing corporate equity. It encompasses the principles and practice of valuation of companies’ shares. This is approached from several different aspects; industry analysis, company analysis, stock index valuation and the link between valuation and investment style. Real corporate analysis will be undertaken to highlight and evaluate the different approaches to investment analysis. This module is particularly useful for students considering a career in finance; investment management, investment banking, private equity or venture capital, but is also useful for those involved in other areas of corporate management where knowledge of investment analysis and company valuation is important.
The aim of the module is to provide the student with the ability to critically evaluate the different approaches to investment analysis and equity valuation. This enables the student to select the approach or combination of approaches which will yield the most suitable analysis when considering the nature of the industry a company operates in, various stock market environments and the stock specific considerations of that company. The module will extend this analysis into the area of behavioural investment analysis where analytical criteria and valuation methods determine investment style; thus empowering the student to select an investment style which suits their investment philosophy.
|Understand and be able to evaluate the role of investment analysis, the drivers of industry value and the drivers of corporate value.|
|Possess the skills to deal with complex issues systematically and make sound analytical recommendations or judgements.|
|Be able to critically evaluate financial opportunities using the appropriate methods of investment analysis.|
|Be able to analyse a wide range of industries and companies using a range of valuation methodologies and comparative and relative valuation techniques.|
|Possess the ability to estimate intrinsic value, relative value and a range of financial multiples for corporate equity.|
|Be able to select an investment style in accordance with their own beliefs or biases.|
|Be able to use Bloomberg as an investment tool.|
C - Cognitive/analytical
K - Subject knowledge
T - Transferable skills
P - Professional/Practical skills
Indicative content includes:
Overview of Equity Investment Analysis
Valuation Principles and Practice
Security Valuation Principles
Industry Analysis: Drivers of Value
Company Analysis and Stock Valuation
Security Selection: Valuation and Style
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.
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.
Reading list for EQUITY INVESTMENT ANALYSIS : http://aspire.surrey.ac.uk/modules/manm318
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 2017/8 academic year.