–       What is investment analysis?

–       What is securities valuation?

–       The investment analysis and securities valuation process.

–       Why value securities?

–       How valuations are used in securities investment.

–       Applying investment analysis and securities valuation in the Bangladesh stock market.

–         Industry demand

–         Life cycle

–         Analysing industry competition

–         Industry risk

–         Michael Porter five forces: analysing industry competition

–         Based on student preparation using the model the chosen industry will be discussed and analysed

–         Process of business analysis

–         Strengths, weaknesses, opportunities and threats for this company

–         Market analysis

–         Analysing resources – governance, management, people, financial, intellectual property, ICT, marketing and sales,

–         Strategic approach of company

–         Ratio analysis

–         The tools of financial statement analysis

–         Identify and calculate ratios, describe their purpose and use in analysing an entity’s liquidity, solvency, profitability, management efficiency and stockholders investment ratios

–         Explain ratio interrelationships

–         Based on work completed by each student at home the ratio analysis of the chosen Bangladeshi company will be discussed in class

–         Estimating cash flows

–         Using a DCF model based on nominal and real financial projections

–         Adjusting the cash flow versus adjusting the discount rate to take risks into account (such as inflation, macroeconomic factors, political risks, regulatory risks, etc.)

–         Calculating a cost of capital for the company

–         Dividends, free cash flow, residual income in DCF models. When to use each particular measure in DCF valuation

–         Using the dividend discount model over various holding periods

–         Using the Gordon growth model: assumptions, limitations, use

–         Using P/E ratios: assumptions, limitations, use

–         Use return on equity: assumptions, limitations, use

–         Other securities valuation models: assumptions, limitations and use

–         Based on a selected Bangladeshi company the class will design an appropriate valuation model for a particular company in class

–         Completing the chosen valuation model

–         Calculating the intrinsic value of the chosen company

–          Using the intrinsic value in making an investment decision about a particular stock