Skip to main content
Module Search
A street in Durham, with old buildings and people walking down the street
 

FINN2087: Financial Valuation

Please ensure you check the module availability box for each module outline, as not all modules will run in each academic year. Each module description relates to the year indicated in the module availability box, and this may change from year to year, due to, for example: changing staff expertise, disciplinary developments, the requirements of external bodies and partners, and student feedback. Current modules are subject to change in light of the ongoing disruption caused by Covid-19.

Type Tied
Level 2
Credits 10
Availability Available in 2024/2025
Module Cap
Location Durham
Department Finance

Prerequisites

Corequisites

  • Corporate Finance (FINN2041)

Excluded Combinations of Modules

  • None

Aims

  • To provide students with knowledge and understanding of the key issues in valuing companies and alternative investment securities.
  • To equip students with the practical tools for undertaking valuations of companies and alternative investment securities.

Content

  • The valuation process
  • Company and industry analysis
  • Discounted cash flow models
  • Relative valuation models
  • Valuation of special transactions (eg. IPOs, M&A deals)
  • Valuation of alternative investment securities (eg private equity, REITs)
  • Comtemporary issues in valuation

Learning Outcomes

Subject-specific Knowledge:

  • By the end of the module students are expected:
  • Have a critical understanding of the process of valuing companies and alternative investment securities.
  • Know the different approaches to valuing companies and alternative investment securities.

Subject-specific Skills:

  • Able to apply different models of valuation to find the value of companies and alternative investment securities.

Key Skills:

  • Interpersonal and Communication - by undertaking a written formative and summative group assignment.
  • Numeracy - e.g. by applying core mathematical and statistical skills to answer a range of seminar questions and online tests.
  • Problem Solving and Analysis - by applying analytical skills to determine the factors that should affect valuation and how to incorporate these into the valuation process.
  • Planning, Organisation and Time Management - by undertaking group work.
  • Computer Literacy - by using different computer tools to carry out valuations.

Modes of Teaching, Learning and Assessment and how these contribute to the learning outcomes of the module

  • Learning takes place through attendance at workshops and preparation for and participation in workshops, and independent study.
  • Summative assessment is by means of group written assignments of 4000 words and online test of not more than 1.5 hours.
  • Formative assessment is by means of group assignment. This will involve presenting a portion of the work for the summative assignment for feedback.

Teaching Methods and Learning Hours

ActivityNumberFrequencyDurationTotalMonitored
Workshops10Weekly 2 hours20Yes
Preparation and Reading80 
Total100 

Summative Assessment

Component: Online testComponent Weighting: 40%
ElementLength / DurationElement WeightingResit Opportunity
Online test1.5 hours100same
Component: AssignmentComponent Weighting: 60%
ElementLength / DurationElement WeightingResit Opportunity
Group assignment4000 words100same

Formative Assessment

Group assignment (Preliminary report)

More information

If you have a question about Durham's modular degree programmes, please visit our FAQ webpages, Help page or our glossary of terms. If you have a question about modular programmes that is not covered by the FAQ, or a query about the on-line Undergraduate Module Handbook, please contact us.

Prospective Students: If you have a query about a specific module or degree programme, please Ask Us.

Current Students: Please contact your department.