CAPITAL MARKETS AND FINANCE (ENGLISH, NON-THESIS)
Master TR-NQF-HE: Level 7 QF-EHEA: Second Cycle EQF-LLL: Level 7

Course Introduction and Application Information

Course Code Course Name Semester Theoretical Practical Credit ECTS
FIN5235 Fundamental Analysis Spring 3 0 3 7
This catalog is for information purposes. Course status is determined by the relevant department at the beginning of semester.

Basic information

Language of instruction: English
Type of course: Departmental Elective
Course Level:
Mode of Delivery: Face to face
Course Coordinator : HANDE SAĞLAM
Course Lecturer(s): Prof. Dr. MURAT AKBALIK
Recommended Optional Program Components: None
Course Objectives: Use fundamental analysis to make investment decisions.
Analyze financial statements as part of the investment decision-making process.
Calculate different share values.
Describe the different fair value calculation methods.

Learning Outcomes

The students who have succeeded in this course;
During this course, participants will learn how to analyze corporate financial statements and forecast future corporate earnings, in order to determine the fair market value of company shares.

Course Content

The Importance of Fundamental Analysis in Investment Decision-making; The difference between fundamental and technical analysis; Basic procedures for fundamental analysis; Financial Statements: the Income Statement, Balance Sheet and Cash Flow Statement; The Different Share Values; The nominal value; The book value; The Different Methods of Calculating the Fair Value; The discounted cash flow method; The discounted distributions method; Using the relative weight for weighting the fair value; Comparing the fair value with the market value to make investment decisions

Weekly Detailed Course Contents

Week Subject Related Preparation
1) Introduction to Securities Analysis
1) Alternative Valuation Models - Cont.
2) Forecasting Financial Data
3) Cash and Free Cash Flow
4) Cash and Free Cash Flow (Cont.)
5) Pro Forma Financial Statements and Forecasting Financial Data
6) Pro Forma Financial Statements and Forecasting Financial Data - Cont.
7) Mid Term
8) Valuation – Adjusted Present Value
9) Valuation – Taxes
10) Alternative Valuation Models
11) Earnings per Share and Alternative Valuation Models
12) Credit Analysis
13) Compensatory Stock Options
14) Special Topics and Course Wrap-Up

Sources

Course Notes / Textbooks: Valuation - Measuring and Managing the Value of Companies, Koller, Goedhart and Wessels, 4th edition (the 3rd edition, where the authors are listed as Copeland, Koller, and Murrin)
References: Valuation - Measuring and Managing the Value of Companies, Koller, Goedhart and Wessels, 4th edition (the 3rd edition, where the authors are listed as Copeland, Koller, and Murrin)

Evaluation System

Semester Requirements Number of Activities Level of Contribution
Attendance 10 % 10
Homework Assignments 2 % 10
Midterms 1 % 30
Final 1 % 50
Total % 100
PERCENTAGE OF SEMESTER WORK % 50
PERCENTAGE OF FINAL WORK % 50
Total % 100

ECTS / Workload Table

Activities Number of Activities Workload
Course Hours 14 42
Application 14 84
Study Hours Out of Class 14 42
Homework Assignments 2 20
Midterms 1 6
Final 1 6
Total Workload 200

Contribution of Learning Outcomes to Programme Outcomes

No Effect 1 Lowest 2 Low 3 Average 4 High 5 Highest
           
Program Outcomes Level of Contribution
1) Identify complex problems and arguments and analyze those using the theoretical tools and quantitative methods of economics and finance. 4
2) Provides a strong conceptual understanding of finance, combined with an understanding of the workings of financial markets and institutions. 3
3) The program ensures an understanding of relationship between financial theory and its practices. 2