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Unit of Study

Fundamental Analysis for Equity Investment
UoS Code ACCT6003
Credit points 6
Offered Semester 1 and Semester 2
Prerequisites ACCT5001 and FINC5001
Corequisites
Prohibitions
Assumed Knowledge QBUS5001 or QBUS5002
Additional Information ACCT6003 assumes knowledge of basic statistics and econometrics that are covered in QBUS5001/5002. ACCT6003 requires the analysis of data, transformations, understanding of distributions, expectations, variance, regression analysis, data graphing.
Lectures 13x 2hr lectures, 6x 1hr workshops, 8x 1hr labs.
Assessment mid-semester exam (20%), equity investment (25%), trading (10%), final exam (45%)
Description This unit develops a framework of fundamental analysis for equity investment in publicly traded companies. The first part of the unit deals with the analysis of financial statement information, complemented with other sources of information such as business strategy, industry prospects and key macroeconomic effects. Emphasis is on the analysis of earnings quality and accounting-based valuation methods. The second part of the unit applies fundamental analysis in the appraisal of equity investment, and the effect of credit evaluation and risk analysis, as well as the valuation for takeovers. The unit also covers the impact on equity valuation from inherent behavioural patterns in informing investment decisions.