Research in Security Valuation

Catalog description

This course focuses on the analysis and valuation of a firm's equity securities in the financial market using a fundamental analysis. Students will learn how to use different valuation techniques for different types of companies (e.g., companies in financial distress/bankruptcy, private companies, start-up companies with no earnings). The course integrates topics discussed in various finance courses to help students to develop their analytical ability to identify strategies that enhance value creation. The philosophical basis for this topical integration is that valuation of a firm's securities requires one to know not only the accounting issues involved in the preparation of financial statements and how to analyze financial statements, but also to understand the impact of monetary policy, the operation and regulation of financial markets on the value of the firm's equity securities. Moreover, because firm value depends on how well the company is managed, a good understanding of its operations in the global markets, its internal control and risk management strategy is also essential. Finally, because valuation is also based on quantitative models, knowledge of quantitative methods is paramount.