Assignment/Coursework Remit
Programme Title MSc Investment
Module Title Financial Statement Analysis and Security Valuation
Module Code 07 36335
Assignment Title Individual assignment 2 -Security Valuation
Level Master
Weighting 50%
Lecturers Dr. Jiaqi Guo
Hand Out Date 09/10/2023
Deadline Date & Time 14/12/2024 12pm
Feedback Post Date 29/01/2024
Assignment Format Report
Assignment Length 2000 words
Submission Format Online Individual
Assignment:
Students are required to do the following analysis based on the sample firm that they chose at
assignment and use any two valuation methods to value the UK company (total and per share).
Whatever methods you use, you should support your choices and your results. You should
clearly lay out your conclusions and the reasoning and methods you used to reach them. Your
answer should be easy to understand and interpret. Financial and non-financial information can
be accessed through Thomsonone.com, FAME (both available via findit.bham.ac.uk), FT.com,
Yahoo Finance, company’s annual reports and any other web resources.
The following is a suggested outline for your valuation report;
1. Executive Summary You should provide an executive summary of your results and
conclusions in no more than 200 words.
2. Description of the
Company
A brief description of the company, its history, product lines,
recent acquisitions, plans for future products/services etc. keep
this section brief and to the point while highlighting all the
factors which are likely to impact future financial performance
of the company.
3. Historical Financial
Data and Forecasts
A brief summary of historical financial data including trends
and growth in company’s revenues, income, cash flows, assets,
debt, profitability etc. The historical growth rates in key
financial items may serve as the basis for future financial
projections.
Provide financial projections for a reasonable future period
based on your chosen valuation method (dividends, cash flows
etc.). All projections and estimates should be supported with
reasons given for forecasted growth/decline rates.
4. Valuation Use any two methods to value the company (total and per
share). Support your choices of methods used and how you
used them. You should provide sufficient supporting data and
details to understand your methods and follow your valuations.
Clearly outline the assumptions and data used in calculating
cost of capital (required rate of return).
Discuss the reliability and accuracy of your share valuation,
including any factors not allowed for in your calculations that
might affect the value of your company on the market or in an
acquisition.
5. Conclusion Provide a brief conclusion summarising your findings and
methods used in the valuation.
Module Learning Outcomes:
In this assessment the following learning outcomes will be covered:
LO 1. able to evaluate the accounting information and other related qualitative information in
order to understand a firm’ financial performance and position.
LO 2. discuss the role of financial statements in assessing the performance and position
of a firm;
LO 3. demonstrate a comprehensive knowledge of analysis and evaluation of financial
statements;
LO 4. apply a wide range of earnings and cash flow based forecasting and valuation models
Grading Criteria:
Executive summary, company description, conclusion, list of
references
10 Marks
Historical Financial Data and Forecasts 25 Marks
Valuation 60 Marks
General presentation 5 Marks
Total 100 Marks
Feedback to Students:
Both Summative and Formative feedback is given to encourage students to reflect on their
learning that feed forward into following assessment tasks. The preparation for all
assessment tasks will be supported by formative feedback within the tutorials/seminars.
Written feedback is provided as appropriate. Please be aware to use the browser and not
the Canvas App as you may not be able to view all comments.
Plagiarism:
It is your responsibility to ensure that you understand correct referencing practices. You are
expected to use appropriate references and keep carefully detailed notes of all your
information sources, including any material downloaded from the Internet. It is your
responsibility to ensure that you are not vulnerable to any alleged breaches of the
assessment regulations. More information is available at
https://intranet.birmingham.ac.uk/as/registry/policy/conduct/plagiarism/index.aspx.
Use of Generative AI:
Unless explicitly stated otherwise, students should assume that the use of generative AI
within an assessment or assignment is not permitted. Any assessment submitted that is not
a student’s own work, including that written by generative AI tools, are in breach of the
University’s Code of Practice on Academic Integrity
(https://intranet.birmingham.ac.uk/as/registry/policy/conduct/plagiarism/index.aspx
Wellbeing Extenuating Circumstances:
The process for Extenuating Circumstances is to support students who have experienced
unforeseen issues that have impacted their ability to engage with their studies and/or
complete assessments. Students should notify Wellbeing of any extenuating circumstances
as soon as possible via the online form, following the guidance provided.
https://intranet.birmingham.ac.uk/social-sciences/college-services/wellbeing/index.aspx
