Course overview
The course explores the theory and practical application of deriving intrinsic value. Students will critically analyse real company data, estimate costs of capital, forecast using pro-forma, apply a cash flow model, and justify results. The course also explores the foundations of fixed income securities and their use in trading strategies. Students will reverse-engineer spot and forward rates using bootstrapping, examine, derive, and understand duration and convexity, and construct active bond trading strategies.
Course learning outcomes
- Conduct valuations based on the discounted cash flow method.
- Conduct a relative valuation for a company.
- Recognize conflicts of interest in valuation contexts
- Critically analyse publically available information about what is occurring in financial markets.
- Demonstrate a basic understanding of the fixed income securities market