Course - Valuation and Profitability Analysis - BOKO4030
Valuation and Profitability Analysis
About
About the course
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
Knowledge
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
Skills
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
Note: students who attend the Master's degree in Accounting and Auditing will have access to the deferred exam in August without needing a valid due date or fail, due to a possible need to achieve C-requirements in the course. These students must contact the department before the registration deadline of 9 July.
More info about re-sit examination, see: https://innsida.ntnu.no/wiki/-/wiki/Norsk/Utsatt+eksamen+-+kont
Permitted aids during the exam: Approved calculator according to NTNU's aid code B-D "specific simple calculator". Other calculator allowed in the course are: Casio FC-100V and Texas Instruments - BAII Plus. When the grade is improved, the opportunity to improve the individual sub-assessment is given.
New assessment if not passed, see supplementary rules at the Faculty of Economics.
In the case of a re-sit exam and the last exam after the course has been discontinued, the form of assessment may be changed to an oral exam
The course is only available to students admitted to a study programme under "special conditions".
Specific conditions
Admission to a programme of study is required:
Accounting and Auditing (MRR)
Economics (MSØK)
Economics (MSØK/5)
Economics and Business Administration (MSIVØK5)
Economics and Business Administration (ØAMSC)
Entrepreneurship (MENTRE)
Entrepreneurship (MSENTRE)
Financial Economics (MFINØK)
Industrial Economics and Technology Management (MTIØT)
Management of Technology (ØAMLT)
Recommended previous knowledge
30 ECTS in accounting and business analysis
Required previous knowledge
None
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 |
|---|---|---|
| BA411 | 7.5 sp | Spring 2015 |
Subject areas
- Economics and Administration
- Economics
Contact information
Examination
Examination
Ordinary examination - Autumn 2025
School exam
The specified room can be changed and the final location will be ready no later than 3 days before the exam. You can find your room location on Studentweb.