FINM1415 Introduction to Finance
Semester 2, 2024
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FINM1415: Individual Stock Valuation Report (20% of Total Grade)
Key Information
• Due Date: 4th October 2024, 14:00 (Brisbane Time)
• Attach a cover sheet as the first page of your work
• The individual assignment has a total marks of 100, which count towards 20% of your final total
grade.
• The individual report has two parts. Part A is a stock valuation report; Part B is a self-reflection
report.
Objective: This assignment aims to get you to experience analysis on a stock. You are asked to
conduct a stock evaluation using various financial models and recommend an investment to a
client. You also need to draw from your learning journey/experiences to complete a self-reflection
report.
Part A: Stock Valuation Report
Deliverable: The stock valuation report should have a maximum of 5 pages (excluding cover
sheet, spreadsheets, reference list, and appendix, and excluding the self-reflection report). You
should include all critical information in these five pages; your clients should not need to go
through either the excel spreadsheet or appendix to acquire necessary information.
You have the freedom to create the report in any style that you like. However, the report should
be presented professionally.
Submission instructions:
When you save your documents, name them as Tutorial Surname Given name.pdf
For example, if you are in Tutorial EX 1 and your name is “John Smith”, then save your
assignment as EX 1 Smith John.pdf
Use “Individual Blackboard Submission Link” to submit BOTH PDF documents and EXCEL
spreadsheet (if any). You do not need to combine PART A and PART B into a single document.
Blackboard allows you to submit multiple files under the same attempt.
Use “Individual Turnitin Submission Link” to submit ONLY WORD document for your PART A .
You can submit the document for an unlimited number of times. However, only the last version
will be marked. Instructions on how to use TurnItIn and Blackboard can be found here:
• Click here https://web.library.uq.edu.au/library-services/it/learnuq-blackboard-help/learnuq- assessment/turnitin-assignments/submit-your-turnitin-assignment to learn more on TurnItIn
Submission
• Click here https://web.library.uq.edu.au/library-services/it/learnuq-blackboard-help/learnuq- assessment/blackboard-assignments/assignment-submission-instructions to learn more on
Blackboard Submission
FINM1415 Introduction to Finance
Semester 2, 2024
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Preparation:
You have the flexibility to select a company (other than your assigned company for Week 6
presentation) which is in the same industry that you have presented in your team presentation.
Please select your company in your tutorial, and if you wish to change a company you must
email your tutor. Note that all companies are to be different across your group members. Please
refer to the excel files (i.e. "FINM1415 Assessment - List of Companies" and "ASX200 List of
Companies" on Blackboard for more information.
Where to source the data?
• Capital IQ provides a wealth of financial data about listed companies with an array of tools for
analysis, ideation, and efficiency. Please sign up for a login using your @student.uq.edu.au email
address at https://www.capitaliq.com/ciqdotnet/login.aspx.
Click on New User to register.
• DatAnalysis Premium provides access to Australian and New Zealand listed company
information. You can access this through the UQ library:
http://datanalysis.morningstar.com.au.ezproxy.library.uq.edu.au/
There is a FINM1415 Database.pdf file to help you use the databases on Blackboard. Any
further questions please ask your tutor.
FINM1415 Introduction to Finance
Semester 2, 2024
Page 3 of 6
Start of the Question
Assume “today” refers to the latest financial year results. For companies full year ended in
December use the financial year 2023. Note for the companies full year ended in June, many will
have reported financial year 2024, or will do shortly. No matter what the company, use the latest
actual financial year results as “today.”
Part 1: Fundamental Analysis (65 marks)
1. Include a short introduction about the company. (5 marks)
2. Carry out valuation using the Dividend Discount Model (DDM). Your analysis should address:
(a) The estimation on equity cost of capital. (5 marks)
(b) The estimation of growth rate clearly states how you measure growth rate. For example, what
variable would you use to estimate the growth rate? What is the time horizon of your choice?
What other qualitative factor may affect your estimation? (15 marks)
(c) Use inputs you specified in part (a) and part (b) to carry out a DDM valuation. What
recommendation would you make about investing in this stock? (10 marks)
3. Provide an assessment of the company using at least 3 value multiples. Interpret the multiples
and discuss the company’s relative position in the industry. What recommendation would you
make about investing in this stock today? (15 marks)
4. Compare your recommendation between using DDM and value multiples, do they give you the
same recommendation, why? If not, why would they differ from each other, and which valuation
approach would you recommend for your company? (5 marks)
5. Assume that the most recent announcement of the company indicates that they will increase
the dividend payout ratio by 10%. Discuss how would this affect your recommendation on this
stock. (10 marks)
Other assumptions that you may need:
• Assume the risk-free rate is 4.0%.
• Market portfolio return is 8.5%.
Part 2: SEAL Reflection - Situation, Effect, Action and Learning
(30 marks)
Self-reflection is the best way to develop your understanding of your own practice for future
improvement. The SEAL reflection method is a structure that guides you to think about your
journey in four aspects: Situation, Effect, Action and Learning.
As part of your journey in this course, we ask you to put down some notes by writing 1-2
sentences or a couple of keywords to reflect the challenges you have encountered. Now, upon
completing your individual report, use these notes as your benchmark to evaluate your journey.
Firstly, take some time to appreciate how much you have achieved, and then lets unfold those
challenges and think about what you have learnt. If you have not yet identified any challenges
with the tasks so far, there should also be a moment that you consider yourself come to a deeper
realization and understanding of the task.
FINM1415 Introduction to Finance
Semester 2, 2024
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Your reflection needs to be critical. You need to move beyond merely describing your learning
experience but to highlight, explain and analyse the changes in your understandings and
approaches resulting from the experience.
You may wish to discuss various aspects that reside with your personal experience:
• What you have learned about applying textbook knowledge to real-world situations. What are
the challenges of dealing with real-world analysis? Is there anything particular to the company of
your evaluation that you find challenging to address?
• What you have learned about working collaboratively in a team. How effective is your team
communication, and what would that look like if you worked in a firm. And how did you manage to
keep the productivity going despite your role in the team? Have you discovered your strength of
working in a team?
• The implications of what you have learned for your future professional practice - how would you
develop your professional capabilities, and how would you work on the areas you need further
development?
Use the attached template: “FINM1415 SEAL Reflection” to complete your self-reflection. This
document will be submitted to blackboard as PART B of the individual report.
Document formatting and presentation
(5 marks)
• Your document should be structured in a cogent and compelling sequence of ideas organised in
paragraphs. You should demonstrate a highly developed understanding of the requirements of
formal argumentative writing.
• Your expression is eloquent, with no lapses in grammar, spelling or sentence.
• Formats and professionalism: Document formatting and presentation is neat and professional.
References are properly included.
• Reference Style: You can use either the APA (7th edition) or UQ Harvard reference style. Both
styles can be accessed from https://guides.library.uq.edu.au/referencing
FINM1415 Introduction to Finance
Semester 2, 2024
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Part A Marking Criteria:
To complete this assignment, You need to submit a PDF document and an excel spreadsheet:
• The PDF document is the main document that will be marked. This document should include all
of your working and solutions.
– Support your argument with numerical analysis, where possible. Make sure you show the list of
inputs and state your assumptions clearly. Your marker should not need to go through your excel
spreadsheet to validate your figures.
Your work will be marked against:
∗ your ability to analyse information and make reasonable judgment on all inputs.
∗ your ability to apply correct formulas with accurate computation and all workings
clearly shown.
∗ your ability to use company’s figures in your analysis.
– For discussion, make sure you use your own words and reference the sources of your
information. Make sure you include a word count (where applicable).
To get a full mark, you need to demonstrate:
∗ your ability to fully address the questions.
∗ your ability to identify key issues and interrogate them within a relevant context.
∗ your ability to synthesise your own ideas with those of your researched sources in
developing arguments.
• The EXCEL spreadsheet should include the financial data that you used to carry out your
analysis. If you wish to use excel to do computation questions, you still need to show your
calculation in the PDF document to demonstrate your knowledge of using formulas. The Excel
spreadsheet serves a purpose for the marker to reconcile your answer with the provided data
and access your ability to collect relevant data. The workings in the excel spreadsheet will not be
marked.
FINM1415 Introduction to Finance
Semester 2, 2024
Page 6 of 6
Part B Marking Criteria on SEAL Reflection:
Basic Developing Expert
Situation The situation has been
described with either: little
information provided; or
irrelevant/superficial
information provided.
The key events / relevant
information regarding the
situation have been explained.
The key events / relevant information
regarding the situation have been
explained clearly and concisely.
Effect Little acknowledgement
that the situation impacted
the student.
The student has acknowledged
the impact that the situation has
had on them. Limited
consideration of why this situation
may have made them feel /react
this way.
The student has acknowledged the
impact of the situation on them and
has identified the personal and
professional consequences of the
situation. The student has considered
why this situation may have made
them feel / react this way.
Action Limited consideration of
why this situation may have
made them feel /react this
way.
The student provides some
description of the actions that
they took and describes the
outcome of those actions.
The student provides a full description
of the actions that they took, with a
clear explanation of why they took
those actions. The student clearly
describes the outcome of those
actions.
Learning The student has not been
able to identify some
capabilities and attributes
developed or
enhanced through this
situation.
The student has been able to
identify some capabilities and
attributes developed or enhanced
through this situation.
Student provides a thoughtful and
considered reflection on the learning
that they have gained through this
situation. Identification of particular
capabilities and attributes developed
or enhanced.
Have Questions?
• Check the Assessment Guidelines on Blackboard if you have questions about submitting the
assessment.
• Post your question on the Discussion board if you cannot find answers from the above sources.
This is the best way to keep the conversation efficient and transparent for other students.
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