General provisions

The course syllabus was approved by the board of the Department of Business Studies on delegation from the Faculty of Social Sciences.

The spring semester 2014 the course is offered as a single subject course. As of the spring semester 2015 the course is offered as a Master programme course- track FIM.

Entry requirements

A Bachelor's degree equivalent to a Swedish degree of at least 180

credits (i.e. three years of full-time studies) with at least 90 credits in

business studies including an independently written academic work of at least

15 credits. If this is not apparent from the transcript, a statement from

the university must be submitted with the application regarding the

independently written academic work of at least 8000 words, in what course

this is included, and a summary of one page in Swedish or English.

Proficiency in English. This is normally attested by means of an

internationally recognised test such as TOEFL or IELTS.

Learning outcomes

The purpose of this course is that students will become knowledgeable users of company valuation models, knowledgeable users and producers of company valuations reports, and to be able to successfully apply the acquired skills in the capital market community.

After successful completion of the course the student will be able to:

• understand the relationships between fundamental valuation and different valuation and investment strategies.
• value companies using several alternative fundamental valuation models.
• show that all the fundamental valuation models yields the same end-result.
• apply valuation models in such a manner that is consistent with underlying theoretical conjectures.
• make consistent forecasts of financial statements.
• critically scrutinise and evaluate others’ forecasts of financial statements and others’ valuation of firms.
• write equity research reports.

Content

In the course, analysis and discussions of different valuation and investment strategies and how fundamental valuation can be distinguished as one particular investment strategy is undertaken.

The course is designed so that the major part of the work is performed as a term paper project in which the students make comprehensive fundamental valuations of companies.

In the process of performing their valuations of companies special evaluation problems arise and are discussed. Another important part of the valuation process is the making of forecasts. The forecasts are made based on historical time-series and cross-sectional financial analysis infused with strategic analysis.

Based on the forecasts, the companies’ values are estimated using several different valuation models such as the dividend valuation model, the free cash flow valuation model, and the residual income valuation model. The students are required to show that the estimated value for each firm is independent of the valuation models.

Instruction

The language of instruction is English. The in-class teaching consists of lectures, seminars, and tutoring.

Assessment

Grades will be given in accordance with the Swedish grading system. The following grades will be used: VG (pass with distinction), G (pass), and U (fail).

The students will get one single grade, equivalent to 7.5 credits.Grading criteria will be presented in the study guide provided at the start of the course.

In addition, any remaining assignments or supplements must be completed and handed in at least within two weeks after the end of the course otherwise the course (all assignments included) has to be redone the following semester, provided there is space in the course.

Uppsala University takes cheating and plagiarism seriously, and disciplinary action will be taken against any student suspected of being involved in any sort of cheating and/or plagiarism. The disciplinary action takes the form of warnings and limited suspensions.

NOTE: Only completed courses can count toward a degree.

Transitional provisions

The course substitutes/overlaps among other courses Advanced Company Valuation, 2FE961, 8FE621