FN668 FINANCE & RISK MANAGEMENT INDIVIDUAL COURSEWORK 2021
Required:
From the perspective of an advisor to an existing investor in a small number of shares in Persimmon plc, you are required to provide share valuation estimates for Persimmon as at the end of November 2021.
Your valuations should firstly be informed by an evaluation of the recent financial performance of Persimmon, undertaken from the perspective of the investor. You should use relevant financial ratios, appropriately referenced, from secondary sources to undertake this evaluation. The ratios should be included within an appendix to the report, but your evaluation and discussion of these should be presented in the main text and should identify the key aspects that will help to inform your valuations.
Your share valuations should include the use of any two of the following methods:
– Net Assets
– Dividends
– Cash flows
– P:E ratio
You may calculate more than one valuation for each method. You should clearly and fully explain any assumptions made within your valuations. In addition, you should provide a critical evaluation of each equity valuation method used in terms of theoretical soundness and practicality.
Your detailed workings for the valuations should be clearly laid out within an excel spreadsheet in the appendices, but there should be sufficient detail within the main report to show the assumptions that each valuation is based upon.
Your conclusion should be based upon your analysis and you should advise the investor whether they should continue to hold the shares, sell the shares, or buy more. The recommendation should be supported by a brief discussion that explains the reasons for your advice.
Module Learning outcomes being assessed:
LO1: Analyse the processes involved in planning and managing the financial resources of organisations to ensure that value is maintained and increased.
LO3: Evaluate, understand and apply sophisticated financial techniques to real world problems of resourcing and investment.
Marks will be awarded for the student’s ability to:
– demonstrate a comprehensive understanding of valuation methods and evaluate the practical application of those methods
– apply appropriate valuation techniques to a real company and perform relevant calculations based on, and informed by, information gathered and selected
– present evidence of wide reading and a clear appreciation of the value and limitations of the methods used
– present a clear and well-structured report, written in an academic style, properly referenced and with a well compiled list of references included
On page 5 of this assessment brief you will find detailed assessment criteria which demonstrates how the marks will be allocated and the feedback organised.
You are also referred to the Undergraduate grading criteria which can be found in your Course Handbook, and on My Studies in the ‘Assessment and marks’ folder.
Assignment Guidance and Support:
Formative Tasks
There will be a lecture and seminar to cover valuation methods (week beginning 11th October, see the Module Roadmap). Within these sessions we will go through the assessment brief and undertake some formative valuation tasks.
Consultation
In addition, consultation sessions to support the assignment will be offered by the teaching team on request and during Enrichment Week.
