代写BUS331 Company Valuation 2023/2024代做留学生SQL语言程序
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Company Valuation
2023/2024
Module Level Learning Outcomes to be assessed (Reference to Module Proposal Form)
No Module Outcome Learning Description
1 A1 Demonstrate systematic and critical knowledge and understanding of the principles, concepts and terminologies associated with company valuation, informed by current thinking and research.
2 A2 Apply such knowledge and understanding, selecting and using established techniques and a range of sources, to describe, synthesise and critically evaluate texts, cases and material issues within company valuation.
3 A3 Demonstrate an awareness of such knowledge and be able to apply to real life cases and corporate decision making and challenges.
4 B1 Select and apply appropriate approaches to a range of problems and issues in the field of company valuation and demonstrate a critical awareness of their limitations.
5 B2 Communicate complex information, arguments, ideas and issues effectively and appropriately, both in writing and orally and to a professional standard.
6 B3 Work independently, demonstrating initiative, self-organisation and time management.
7 B4 Develop professional working relationships within a group, and help to establish a learning agenda through negotiation; learn how to negotiate to minimise conflict in the production of joint work.
8 C1 Apply and develop research skills, and communicate research findings.
9 C2 Where appropriate, link studies within the module to future career plans.
10 C3 Ability to plan and evaluate own learning and performance, and apply learning strategies to improve performance.
Assessment instructions for students (as per QMPlus ‘Assessment Information’ tab)
A. The module learning outcomes being assessed
This module identifies and explores challenges and issues facing global managers and corporate consultants as they operate in a global world requiring them to know what an asset is worth and what determines its value wherever the asset is around the world. The postulate for sound investing is that a manager does not pay more for an asset than it is worth. In a global world and under competition managers assessments of value must be backed up by reality which implies that the price we pay should relate to realistic estimates of cash flows and uncertainties faced by global managers.
B. Instructions and guidance
Students are expected to choose a company as an example and adopt valuation models covered in lectures to carry out company evaluation and provide both critical discussions and quantitative analysis in the decision-making process. The format has been presented in both lectures and seminar slides; specifically, this essay-based work should include the introduction, company background analysis, valuation model choices and justifications, costs of capital and cash flow estimations, relative valuations, and conclusions or implications, etc. More specifically,
A brief overview of the Coursework:
(1) Choose a company first:
You will be asked to conduct company valuation for a company of your choice and justify your choice based on the contents you learn in class. For example, there are several reasons why you may choose this company, including its business nature, cash flow and cash reserves, and other factors. If you would like to further choose the discounted cash flow models to do your company valuation, you are expected to argue that since the firm has a higher level of year-on-year cash holdings and net operating cash flows for a number of years, it would be a good setting to base on the sufficient cash flow information to estimate the intrinsic value of the firm you choose. Choose a company you are interested in preferably with international operations in weeks 1 and 2. The company you chose can be from any industry (except financials) and any country or any size. Financial companies such as banks insurance companies etc are excluded because I will not cover the intrinsic details that apply to them. Make sure you chose a company that is listed in a stock exchange to ensure that you have access to annual statements and share prices. You can work on an unlisted company if you have access to financial statements, i.e. if you work for the company and they give full access to their accounts. Based on what you have learned in class, you are expected to make sure you at least write down some basic backgrounds and financial fundamental information and your justification of your choice and save them to a Word document, because it will save you some time when you do your final assessment and before your submission deadline. Under such a circumstance, you won’t be in a hurry in your final week.
(2) In the next following few weeks:
From week 2/3 onwards you will be applying the methods you learn every week to the company of your choice. Make sure you make study group for yourself and go over the topics we cover that week and apply the valuation method to the companies that you have chosen. Once you have done that - we will sometimes discuss your findings/concerns during the class when you raise your questions. I recommend when unsure always calculate more than one value using different assumptions. The critical thinking, discussions, and numerical question solutions or training in our weekly seminars will constitute the first draft of your coursework. If you have done some of your work in our seminar sessions or make some notes in terms of company valuation by yourself, you could easily incorporate these information/critical discussions into your coursework.
(3) Final week you will have the full draft of your coursework.
When you come to class make sure this is the best version (or a better version) you have ready for submission. The date of submission will be set around the middle or the end of April. I will let you know when the information is confirmed. However, the earlier you get everything well prepared, the better. I will not be able to ask everyone to present during class size but will call you on a random basis for discussions or randomly ask about the format and some contents of your coursework in class and will give feedback. When you discuss the final valuation of the company, I would recommend you calculate a range of values under different assumptions and decide on the value you think is the correct value for the company taking various factors into account. Different models and assumptions may lead to different results, it looks fine to me if you could justify your choice or critically discuss the advantages or the disadvantages of the method you use and provide your own insights.
(4) In your coursework submission please make sure you give the company background, the assumptions you make, your range of values and your final decision about the value of the company in detail. Also make sure the coursework is presented in good format. Overall, excluding tables, references etc. Please do not exceed 3000 words.
C. Assessment rubric with weighted criteria
Sections and Marking:
It is easier to read and follow your coursework if you use sections and subsections. All of you are working with different companies and different data sets and different approaches to valuation. Your coursework and coursework format will reflect that. Therefore, I am not giving a separate word limit to each section. Some of you will use more space for company background others for growth rates, yet others for adjustments on cash flows or relative valuations. You have been working every week and you can use your work in leading you what requires more or less space in the presentation of company valuation. Take below suggestions as general remarks and feel free to adopt to your particular company and particular valuation approach.
1. Introduction (15%)
Start with an introduction. Discuss your motivation and why you chose this company for valuation. Who is the decision maker and what is the decision to be made? For example are you managing a portfolio and reporting to your boss for the inclusion or exclusion of a stock? Are you a CEO considering a merger or an acquisition decision? What makes this company interesting? Why are you valuing it? Your valuations make sense in the light of the reason for your valuation. Your motivation for valuing this company must be understandable. Somewhere in the introduction, either at the very beginning or the end, you should have a “The purpose of this valuation is...” or the “Main decision to be made with this valuation is...” sentence. Give a road map at the end of this section, a short paragraph or maybe a sentence or two, to describe the organisation of the paper section by section.
2. Company Background/Institutional Background (15%)
Make sure to include a company background section of your coursework. Give a good analysis of the company background with academic reference to its past performance, industry, economy etc. Your assumptions will depend on this background analysis. Your decision will depend on this background analysis. This section comes from mainly Week 1/2 assignment in seminars.
3. Valuation of the Company (40%)
You can be flexible in the subsections here when you present the valuations and the steps you use to arrive at those valuations. Every company is different. Every student has a different purpose to conduction the valuation. It will all be reflected in this section. You can use the sequence you used in weekly assignments in this section.
3.1. Calculation of the cost of equity and the weighted average cost of capital for your firm. Discuss the different assumptions you make for each component and show how you arrived at one or a series of cost of capital estimates under different assumptions.
3.1.1 First part of this section comes from your work in week 3 when you estimate the risk-free rate, market premium and the Beta coefficient for your company and then calculate the cost of equity. Make sure you discuss the choice of estimation periods and processes you used for the risk-free rate, market premium, beta, and the cost of equity.
3.1.2 Second part of this section comes from week 4 when you estimate the cost of debt and the weighted average cost of capital for firm valuation by using different assumptions. Make sure you discuss the choice of estimation periods and processes you used for the cost of debt and the capital structure of the firm.
3.2. Calculation of cash flows to the firm and cash flows to equity using different assumptions. Discuss the different assumptions you make for each component of cash flow estimations and how you arrived at one or more cash flow estimates under different assumptions. Make sure you discuss the choice of adjustments and estimation processes you make for Research and Development, Leasing, Depreciation/Amortisation, Capital expenditures etc. if they are relevant for your firm.
3.2.1 If you are doing the valuation for the firm value this section is coming from your assignment in week 5. Make sure to calculate cash flows to the firm using different assumptions and to describe your choices.
3.2.2 If you are doing the valuation for equity his section is coming from your assignment in week 6. Again, make sure to calculate cash flows to equity using different assumptions and to describe your choice.
3.3. Calculation of future cash flows using different estimates of growth rates for cash flows. Describe and justify your choice in each case. You can estimate a range of growth rates or assume growth rates change as the firm life cycle develops.
3.3.1 First part of this section comes from your work in week 8 where you calculated different estimates of growth rates. Make sure you describe and justify your choices.
3.3.2 The second part of this section comes from your work in week 8 where you calculated different estimates of terminal value for the firm. Again, make sure to justify your choices
3.3.3 The third part of this section comes from your work in week 9 where you calculated the value of the firm and value of equity under different assumptions. This section will summarise and present the range of values you have calculated under different assumptions.
4. Calculation of the value of the firm relative to its international or home-country peers. (10%)
It is tough to find an exact replica of your firm or sometimes even define an industry. Discuss how you make and adjust your assumptions. This section comes from your work on week 10 and 11.
5. Discussions and Conclusions (15%)
You have calculated the value of the firm and the value of equity under different assumptions. Use week 12 to come up with a decision. It is usually helpful to present the different values you have calculated under different assumptions. One easy way of doing it is to present is to make a table and show for example how the value changes under different cost of capital assumptions or growth rate assumptions etc. This makes it easier to see the range of values from a minimum to a maximum. Once you have this then you can make a decision. You can compare your valuation to market valuations and arrive at a decision. Or you can state that this is the maximum you are willing to pay to acquire the company. Or this is the maximum you are willing to get to sell it etc. You know the company background and the industry and the economy. You can use all additional information you have about company prospects in making a decision. You can discuss the advantages and the disadvantages of the several approaches you used this valuation process. The key point is you need to make a decision. Make that decision. It is always hard to make a decision. But make it. Do you recommend buy? Do you recommend sell? Do you recommend hold? Make sure you make that decision.
References (5%)
Guidelines for Marking: This module is assessed 100% by coursework. The weekly preparations/seminars towards coursework will help save your time and get you well prepared for the final coursework. Yet, be aware, it is almost impossible to write a good coursework of 3000 words unless you work towards it week by week in your daily life and develop it with peer or lecturer feedback.
Guidelines for Coursework
The following steps should guide you through the coursework:
(1) Choose a listed company preferably with international operations among those listed in LSE or any other stock exchange. Make sure the company has financial statement and price data for at least five years. You can now start writing the company background section of your coursework. Describe why you are valuing this company and give a good analysis of the company background with reference to its past performance, industry, economy, business nature, cash holding, financial health, etc.
(2) Calculate the cost of equity and the weighted average cost of capital for firm valuation by using different assumptions. Make sure you discuss the choice of estimation periods and processes you used for the risk-free rate, market premium, beta, cost of equity, cost of debt and the capital structure of the firm.
(3) Calculate cash flows to the firm and cash flows to equity using different assumptions
(4) Calculate future cash flows using different estimates of growth rates for cash flows. Describe and justify your choice.
(5) Calculate the value of the firm relative to its home-country or international peers.
(6) Calculate the value of the firm and the value of equity under different assumptions.
Decide what the value of the company is and how you use this for decision making. Discuss the advantages and the disadvantages of the approach you had in this valuation process.
Good Format:
Make sure the coursework is presented in good format. Submit your coursework using word/pdf processor. Make sure you have read the coursework as a whole and this is what you want to submit. Use the spellcheck and grammar check options of word so that it is free of such errors. Assume you are submitting it to your boss or your client and you want to convince them that the value of your company is what you have decided it is. You are proposing your boss or client either to buy or sell or hold a company and these are extremely important decisions and your argument needs to be convincing to be implemented. The write up and presentation is to that effect.
Word Limit:
Overall, excluding title page, formulas, tables, etc. As a normal practice, please do not exceed 3000 words. This does not mean that you will lose points if you have 3001 or 2999 words, but it means this is the space you have to present your company valuation. Do not exceed it. Do not use space for redundant or general knowledge. Use the space to give details of your work and its implications to decision making.
Appendices:
Most of you may make excel calculations and most weeks, more than one calculation to the same effect. For example, you might have made three or four different calculations for risk free rate. I am aware that there is not enough space in 3000 words to include all of those. If that is the case put them in an appendix, number and name the appendix (example Appendix 1 Frisk Free Rate). In the text just give a brief summary of your assumptions and different risk-free rates you are using and make a note to me that says “See Appendix1” so that I can go there and see your calculations if necessary.
Cover Page:
Cover page should include the title of the coursework, usually indicating the name of your company and the name and student number of the student submitting the coursework.
References:
If you cite a paper give reference to it; for example (Muradoglu, 2001). It is all right to use quotations from authors; you need to give the quote; for example, “optimism is...” (Muradoglu, 2002; page 21) together with the reference and the page number. At the end include a references section as you see in the papers you have read and give all references you use there. Most students use the references section to give references to the sources they use for giving their companies background or the book they use in detailed calculations, or ideas or comments from the reading list.
D. Assurance of Learning measures: performance thresholds for assessment criteria
For UG: “significantly exceeds expectations” [outstanding/excellent] at equivalent of 70+, “exceeds expectations” [good] at equivalent of 60-69, “meets expectations” [average] at equivalent of 40-59; “does not meet expectations” [poor/outright fail] at equivalent of 39 or less.
The assessment of BUS331 is 100% coursework, which is an essay-/valuation-based assessment. There is only a submission deadline for the coursework, which has been indicated in the “Submission Deadline” session below. There is only one coursework to be submitted via QM Plus. There is no need to submit weekly seminar questions or assignments because the suggested solutions to seminar questions will be provided and carefully discussed during seminars. Please note that it is SBM policy to use Turnitin for all written work that is submitted by students. You are encouraged to view the SBM Turnitin policy which can be found here. Additional information on rubrics produced by The Associate Dean for Education and the Digital Learning Officer can be found with the Assurance of Learning material on SharePoint here.
Resit Assessment Instructions: Assessment instructions for resit assessments will be provided after the Subject Exam Board has met and confirms a failure in the module around June 2023. Students will be required to resit only the failed assessment component(s) where they have failed the module overall, i.e. failed the exam but passed the coursework component, therefore resit required only for the exam or if both the coursework and exam components have been failed, both components will require resitting. Resits are marked in the same way as the first sit attempt except the overall module mark is capped at 40.00 and you cannot achieve a higher module mark than that. All resits must be in the same format (e.g., coursework or take-home exam/assignment). In cases where an assessment cannot be replicated (e.g. a class presentation or group project) an alternative will be provided.
Module Support: [email protected] (It will deal with all School of Business and Management programmes, modules, timetabling, assessments/coursework, in-class tests, QM-Plus queries and any academic query relating to UG-Level 6 study)