FINC 3015 Financial

Valuations

Dr Craig Mellare
S1, 2021

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Topic 1A Course
Administration

Dr Craig Mellare
S1, 2021

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 Teaching Team

– Course Coordinator / Lecturer

– Craig Mellare
– Room 537, Economics & Business Building
– E-mail: craig.mellare@sydney.edu.au
– Consultation time: Wednesday 10am to 11am
– Tutors:
– Kenn Savvas, Jessica Wu, Sahil Arora, and Jerry Li

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 Unit Learning Outcomes

– At the completion of this unit, you should be able to:

– LO1. Explain the approaches to and solve practical financial problems
using a range of valuation techniques
– LO2. Critically evaluate the models and approaches covered in this Unit of
Study
– LO3. Use Microsoft Excel effectively to model and solve valuation
problems
– LO4. Effectively communicate valuation results through a range of
quantitative and qualitative outputs
– LO5. Work collaboratively in a team to address and resolve complex
valuation
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 Delivery Method
– Lectures
– Provide the KEY information you need on concepts and methodology
– Pre-recorded videos uploaded on canvas early in the week
– Generally at least 2 per week depending upon natural ‘breaks’
– Tutorials
– Provide the technical aspects and guidance on application
– Face-to-face for on campus students
– Zoom for off-campus students
– One tutorial each week will be recorded and uploaded on canvas at the
END of the week.
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 Communication
– I will communicate important information to you via canvas
announcements. You are expected to read them!
– Consultation
– Wednesday 10am – 11am
– I will make zoom link available on canvas

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 Topic Schedule
Week Lecture Tutorial Assessment Due
1 Introduction No tutorial
2 Building Pro Forma Statements Course Overview
3 Analysing the Firm’s Environment Income Statement
4 Analysing the Firm’s Operations Balance Sheet
5 Forecasting and Valuing Cash Flows Sensitivity Analysis and Free Cash Flow
Mid-Semester Break
6 Project Risk Analysis Cash Flow Statement and Management
7 Estimating a Firm’s Cost of Capital WACC 1 Individual Case Due
8 Relative Valuation Using Comparables WACC II/Relative Valuation I
9 Enterprise Value Relative Valuation II
10 Earning Dilution, Incentive Compensation, Project selection Research Methodologies, APV/CROC/RI
11 Valuation in Private Equity Slide Presentations, Economic Profit
12 Guest Lecture Leveraged Buyout Analysis Group Case Report Due
13 Review and Exam Preparation No Tutorial Group Presentation

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Note: The ordering and delivery of these lectures may change. Notice will be provided Page 7
to you ahead of time where changes occur.
 Expectations
– What do I expect from you:
– Independent thought/work
• I will guide your learning but I can’t do the learning for
you
– Stay on top of the material
• As topics build on previous weeks material it is critical
you do not fall behind
– Be proactive
• If you are having trouble with the material see me as
soon as possible
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 What makes a HD student in the unit?
– A top student in this unit is characterised by:
1. Excellent understanding of valuation techniques
2. Asking questions
3. Critically evaluating assumptions made in the valuation
process
4. Following what is going on in financial markets
5. Being able to defend choices made in the valuation
process when challenged on it
6. Being able to clearly present information in a logical
manner
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 Assessment Tasks
1. Individual Case Study Report (25%)
– Due 11:59pm 19 April 2021
– 5 page report and supporting pro forma financial statements
2. Group Case Study Report and Presentation (25%)
– Due 11:59pm 24 May 2021
– 12 page report plus backing excel worksheet
– 20 slide presentation
3. Final Exam (50%)
– Short answer questions in the final exam period
– Make sure all the work you submit is your own – zero tolerance for cheating!
(familiarise yourself with Academic Honesty in Coursework Policy, 2015)
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 The End

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