FIN 6540 - Equity Analysis

A detailed analysis of the investigation of equity securities as long-term investment media. Pricing of equities using both absolute and relative valuation models for security selection decisions. Absolute valuation models include dividend discount, free-cash flow to firm, free-cash flow to equity, and residual income models. Relative valuation models include price ratios and enterprise value multiples. Besides individual securities, fundamental analyses of peers, sectors and industries are highlighted to conclude with the best price estimate, and the analyst recommendations. Allocation of funds to build efficient equity portfolios, optimal portfolio allocation simulations, and portfolio performance evaluation will be covered. Use of computer modelling, and extraction of large datasets from the WRDS data framework and Bloomberg terminals will be necessary. Emphasis on the quantitative methods of equity analysis and consideration will be given to other mechanics, markets, institutions, and instruments important to the investment process.
Note: Open to graduate students only. Not open to students with credit earned in FIN 4530 or its equivalent.

Prerequisites/Corequisites: Prerequisite: FIN 6120

Credits: 3 hours

Restrictions: Enrollment in HCOB graduate business courses requires admission to the MBA or MSA program or the approval of the Director of Graduate Business Programs.