course-details-portlet

BOKO4030

Valuation and Profitability Analysis

Choose study year
Credits 7.5
Level Second degree level
Course start Autumn 2024
Duration 1 semester
Language of instruction Norwegian
Location Trondheim
Examination arrangement School exam

About

About the course

Course content

  • Fundamental valuation
  • Valuation models
  • Cost of capital
  • Rearrangements of accounting information for investor oriented analyses
  • Forecasting and valuation
  • Profitability analyses
  • Sensitivity analyses
  • Tax and valuation

Learning outcome

Knowledge

The student will have knowledge of different methods for valuation, different cash flows and their application for valuation purposes, on consistency in using required rate of return for all types of businesses and on profitability concepts such as profitability, residual income and internal rate of return. The student will also have knowledge og valuation issues regarding Financial Reporting, including knowledge about the terms fair value and fair value and value in use, as well as insight on the significance of tax positions regarding required rate of return and valuation

Skills

The student will have skills in solving business problems, with emphasis on valuation, and with a critical look assess which methods that are appropriate in different situations.

General Competence

The student will have general competence in integrating and applying different fields of study such as financial theory and accounting with regard to valuation and profitability analyses of businesses.

Learning methods and activities

Lectures and exercises

Compulsory assignments

  • Skriftlig gruppebasert innlevering på inntil 3 studenter

Further on evaluation

Note: students who attend the Master's degree in Accounting and Auditing will have access to the deferred exam in August without needing a valid due date or fail, due to a possible need to achieve C-requirements in the course. These students must contact the department before the registration deadline of 9 July.

More info about re-sit examination, see: https://innsida.ntnu.no/wiki/-/wiki/Norsk/Utsatt+eksamen+-+kont

Permitted aids during the exam: Approved calculator according to NTNU's aid code B-D "specific simple calculator". Other calculator allowed in the course are: Casio FC-100V and Texas Instruments - BAII Plus. When the grade is improved, the opportunity to improve the individual sub-assessment is given.

New assessment if not passed, see supplementary rules at the Faculty of Economics. The course is only available to students admitted to a study programme under "special conditions".

Required previous knowledge

None

Course materials

Penman, S. H. Financial Statement Analysis and Security Valuation, McGraw Hill, latest edition. Notes and some articles.

Subject to changes. Final syllabus is stated at semester start

Credit reductions

Course code Reduction From
BA411 7.5 sp Spring 2015
This course has academic overlap with the course in the table above. If you take overlapping courses, you will receive a credit reduction in the course where you have the lowest grade. If the grades are the same, the reduction will be applied to the course completed most recently.

Subject areas

  • Economics and Administration
  • Economics

Contact information

Course coordinator

Department with academic responsibility

NTNU Business School