BOKO4030 - Valuation and Profitability Analysis


Examination arrangement

Examination arrangement: Home examination
Grade: Letters

Evaluation Weighting Duration Grade deviation Examination aids
Home examination 100/100 4 hours

Course content

  • Fundamental valuation
  • Valuation models
  • Cost of capital
  • Rearrangements of accounting information for investor oriented analyses
  • Forecasting and valuation
  • Profitability analyses
  • Sensitivity analyses
  • Tax and valuation

Learning outcome


The student will have knowledge of different methods for valuation, different cash flows and their application for valuation purposes, on consistency in using required rate of return for all types of businesses and on profitability concepts such as profitability, residual income and internal rate of return. The student will also have knowledge og valuation issues regarding Financial Reporting, including knowledge about the terms fair value and fair value and value in use, as well as insight on the significance of tax positions regarding required rate of return and valuation


The student will have skills in solving business problems, with emphasis on valuation, and with a critical look assess which methods that are appropriate in different situations.

General Competence

The student will have general competence in integrating and applying different fields of study such as financial theory and accounting with regard to valuation and profitability analyses of businesses.

Learning methods and activities

Lectures and exercises

Compulsory assignments

  • Skriftlig gruppebasert innlevering på inntil 3 studenter

Further on evaluation

Supporting material allowed on exams: Approved calculator regarding NTNUs support material code B-D "specific basic calculator". Other calculators that are allowed in the course are: Casio FC-100V and Texas Instruments - BAII Plus. New assessment if not passed, see supplementary rules at the Faculty of Economics and Management. Admission to study programme is required, see "special conditions".

Required previous knowledge


Course materials

Penman, S. H. Financial Statement Analysis and Security Valuation, McGraw Hill, latest edition. Notes and some articles.

Subject to changes. Final syllabus is stated at semester start

Credit reductions

Course code Reduction From To
BA411 7.5 01.08.2015
More on the course



Version: A
Credits:  7.5 SP
Study level: Second degree level


Term no.: 1
Teaching semester:  AUTUMN 2021

Language of instruction: Norwegian

Location: Trondheim

Subject area(s)
  • Economics and Administration
  • Economics
Contact information
Course coordinator: Lecturer(s):

Department with academic responsibility
NTNU Business School


Examination arrangement: Home examination

Term Status code Evaluation Weighting Examination aids Date Time Digital exam Room *
Autumn ORD Home examination 100/100 INSPERA
Room Building Number of candidates
  • * The location (room) for a written examination is published 3 days before examination date. If more than one room is listed, you will find your room at Studentweb.

For more information regarding registration for examination and examination procedures, see "Innsida - Exams"

More on examinations at NTNU