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.
- Equity Valuation
- Debt Valuation
Course learning outcomes
- Critically analyse publicly available information on financial market and company data used in valuation models based on in practice methodology.
- Conduct valuation techniques using forecasting and discount models based on in practice methodology.
- Conduct multiples analysis and relative valuation using real-world data based on in practice methodology.
- Demonstrate knowledge of foundational fixed income security characteristics, term structure of interest rate theories, and risk exposure in financial markets.
- Demonstrate an understanding of duration and convexity and implications for trading strategies in financial markets.
Degree list
The following degrees include this course