Students

AFIN8038 – Business Valuation

2026 – Session 1, In person-scheduled-weekday, North Ryde

General Information

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Unit convenor and teaching staff Unit convenor and teaching staff Senior Lecturer
Grace Lepone
grace.lepone@mq.edu.au
544 4ER
by appointment
Credit points Credit points
10
Prerequisites Prerequisites
(Admission to MActPrac or MFin) or ACCG6011 or AFIN6013 or AFIN6012 or ACST6003 or ACCG6003
Corequisites Corequisites
Co-badged status Co-badged status
Unit description Unit description

This unit develops students' abilities to conduct equity valuation for investment purposes. This advanced module introduces the techniques used by equity financial analysts to measure the worth of a company and its investments. Students assume the role of a financial analyst and learn the mechanics of financial valuation by: performing industry and financial analysis, measuring accounting quality, estimating discount rates, forecasting cash flows, and ultimately issuing a buy/hold/sell recommendation on the firm based on the estimated target price.

Important Academic Dates

Information about important academic dates including deadlines for withdrawing from units are available at https://www.mq.edu.au/study/calendar-of-dates

Learning Outcomes

On successful completion of this unit, you will be able to:

  • ULO1: Explain the principles and theory behind each valuation technique. 
  • ULO2: Evaluate various business valuation techniques and select and apply the most appropriate technique to real world valuation problems.
  • ULO3: Working collectively in a group to value the equity of a company and make recommendations. 

General Assessment Information

Late Submission Penalties

If you submit your assessment late, 5% of the total possible marks will be deducted for each day (including weekends), up to 7 days. Submissions more than 7 days late will receive a mark of 0.

Example 1 (out of 100):

If you score 85/100 but submit 20 hours late, you will lose 5 marks and receive 80/100.

Example 2 (out of 30):

If you score 27/30 but submit 20 hours late, you will lose 1.5 marks and receive 25.5/30.

Extensions

Automatic short extension: Some assessments are eligible for automatic short extension. You can only apply for an automatic short extension before the due date.

Special Consideration: If you need more time due to serious issues and for any assessments that are not eligible for Short Extension, you must apply for Special Consideration. Need help? Review the Special Consideration page for further details.

Assessment Tasks

Name Weighting Hurdle Due Groupwork/Individual Short Extension AI Approach
Formal examination: Test 20% Yes Week 5 Individual No Observed
Professional practice: Applied business valuation 40% No Week 12 Individual and Group No Open AI
Formal examination 40% No Exam Period Individual No Observed

Formal examination: Test

Assessment Type 1: Examination
Indicative Time on Task 2: 15 hours
Due: Week 5
Weighting: 20%
Groupwork/Individual: Individual
Short extension 3: No
AI Approach: Observed
This is a hurdle assessment task (see assessment policy for more information on hurdle assessment tasks)

The purpose of this assessment is for you to demonstrate your understanding and knowledge of key topics from the unit.

You will participate in a formal test. Feedback on your performance will help you assess your progress through the unit content.

Deliverable(s): Test Individual assessment
On successful completion you will be able to:
  • Explain the principles and theory behind each valuation technique. 
  • Evaluate various business valuation techniques and select and apply the most appropriate technique to real world valuation problems.

Professional practice: Applied business valuation

Assessment Type 1: Professional task
Indicative Time on Task 2: 25 hours
Due: Week 12
Weighting: 40%
Groupwork/Individual: Individual and Group
Short extension 3: No
AI Approach: Open AI

The purpose of this assessment is for you to work with peers to deepen your professional understanding of business valuation.

You will work collaboratively to produce a business valuation report in line with industry expectations. Based on your group's business valuation report and individual analysis, you will make a final recommendation.

Skills in focus:

  • Digital skills
  • Discipline knowledge
  • Collaboration and communication
  • Critical thinking and problem solving
  • Work readiness

Deliverable(s): 30% group business report [max 2,500 words] and 10% individual report [max 1,000 words] Individual and group assessment
On successful completion you will be able to:
  • Explain the principles and theory behind each valuation technique. 
  • Evaluate various business valuation techniques and select and apply the most appropriate technique to real world valuation problems.
  • Working collectively in a group to value the equity of a company and make recommendations. 

Formal examination

Assessment Type 1: Examination
Indicative Time on Task 2: 20 hours
Due: Exam Period
Weighting: 40%
Groupwork/Individual: Individual
Short extension 3: No
AI Approach: Observed

The purpose of this assessment is for you to demonstrate the expertise you have gained in this unit.

You will participate in a 2-hour exam held during the University Examination period. Important information about the exam will be made available on the unit iLearn page. You should also review the MQ Exams website for general tips: 

Deliverable(s): Formal exam Individual assessment
On successful completion you will be able to:
  • Explain the principles and theory behind each valuation technique. 
  • Evaluate various business valuation techniques and select and apply the most appropriate technique to real world valuation problems.

1 If you need help with your assignment, please contact:

  • the academic teaching staff in your unit for guidance in understanding or completing this type of assessment
  • Academic Success for academic skills support.

2 Indicative time-on-task is an estimate of the time required for completion of the assessment task and is subject to individual variation.

3 An automatic short extension is available for some assessments. Apply through the Service Connect Portal.

Delivery and Resources

UNIT READINGS

See weekly readings list

PRESCRIBED TEXT

"Damodaran on Valuation" Second Edition by Aswath Damodaran. ISBN: 978-0471751212.

RECOMMENDED TEXT

Additional references may be added during the semester. 

Unit Schedule

Week 1 | Introduction, Sources of Information, and Industry Analysis

Week 2 | Financial Reporting and Analysis

Week 3 | Market Valuation: Relative Valuation Techniques (PART 1)

Week 4 | Market Valuation: Relative Valuation Techniques (PART 2)

Week 5 | In Class Quiz

Week 6 | DCF - Quality of Financial Statement

Week 7 | DCF - Advanced Estimation of Discount Rates

Week 8 | DCF - Estimating Cash Flows (I)

Week 9 | DCF - Estimating Cash Flows (II)

Week 10 | DCF - Growth Rate

Week 11 | DCF - Terminal Value

Week 12 | A Practitioner's Approach to Valuing Firms/ESG Issues

Week 13 | Revision and Information for Final Exam

 

Policies and Procedures

Macquarie University policies and procedures are accessible from Policy Central (https://policies.mq.edu.au). Students should be aware of the following policies in particular with regard to Learning and Teaching:

Students seeking more policy resources can visit Student Policies (https://students.mq.edu.au/support/study/policies). It is your one-stop-shop for the key policies you need to know about throughout your undergraduate student journey.

To find other policies relating to Teaching and Learning, visit Policy Central (https://policies.mq.edu.au) and use the search tool.

Student Code of Conduct

Macquarie University students have a responsibility to be familiar with the Student Code of Conduct: https://students.mq.edu.au/admin/other-resources/student-conduct

Results

Results published on platform other than eStudent, (eg. iLearn, Coursera etc.) or released directly by your Unit Convenor, are not confirmed as they are subject to final approval by the University. Once approved, final results will be sent to your student email address and will be made available in eStudent. For more information visit connect.mq.edu.au or if you are a Global MBA student contact globalmba.support@mq.edu.au

Academic Integrity

At Macquarie, we believe academic integrity – honesty, respect, trust, responsibility, fairness and courage – is at the core of learning, teaching and research. We recognise that meeting the expectations required to complete your assessments can be challenging. So, we offer you a range of resources and services to help you reach your potential, including free online writing and maths support, academic skills development and wellbeing consultations.

Student Support

Macquarie University provides a range of support services for students. For details, visit http://students.mq.edu.au/support/

Academic Success

Academic Success provides resources to develop your English language proficiency, academic writing, and communication skills.

The Library provides online and face to face support to help you find and use relevant information resources. 

Student Services and Support

Macquarie University offers a range of Student Support Services including:

Student Enquiries

Got a question? Ask us via the Service Connect Portal, or contact Service Connect.

IT Help

For help with University computer systems and technology, visit http://www.mq.edu.au/about_us/offices_and_units/information_technology/help/. 

When using the University's IT, you must adhere to the Acceptable Use of IT Resources Policy. The policy applies to all who connect to the MQ network including students.

Unit information based on version 2026.04 of the Handbook