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, utilise relative valuation techniques, 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.
- Equity Valuation
- Debt Valuation
Course learning outcomes
- Evaluate publicly available financial market and company data to assess company performance.
- Apply forecasting and discount models to conduct valuation techniques, estimating intrinsic value.
- Interpret and utilise relative valuation techniques using multiples analysis.
- Determine foundational characteristics of fixed-income securities to examine investment risk exposures.
- Calculate duration and convexity, examining the implications for trading strategies in financial markets.
Degree list
The following degrees include this course