| CAPITAL MARKETS AND FINANCE (ENGLISH, NON-THESIS) | |||||
| Master | TR-NQF-HE: Level 7 | QF-EHEA: Second Cycle | EQF-LLL: Level 7 | ||
| Course Code | Course Name | Semester | Theoretical | Practical | Credit | ECTS |
| FIN5235 | Fundamental Analysis | Fall | 3 | 0 | 3 | 7 |
| This catalog is for information purposes. Course status is determined by the relevant department at the beginning of semester. |
| Language of instruction: | English |
| Type of course: | Departmental Elective |
| Course Level: | |
| Mode of Delivery: | Face to face |
| Course Coordinator : | Prof. Dr. HAKKI ÖZTÜRK |
| Course Lecturer(s): |
Prof. Dr. MURAT AKBALIK |
| Recommended Optional Program Components: | None |
| Course Objectives: | The course is divided into two parts. The first part is an introduction to financial markets and basic valuation covering interest rates, time value of money, risk and return and discount factor. The first part also covers primary value concepts, like market value, book value and equity value versus firm value. The second part of the course begins with fundamental analysis and effective use of financial ratios covering balance sheet, income statement and financial ratios. The second part of the course also puts emphasis on CAPM. This course will also introduce the student to stock valuation models. Price/Earnings, Price/Book, Enterprise Value/EBITDA multiples in relative valuation will be analyzed. The main objective of this course is to study fundamental concepts of investment theory in financial markets and to analyze the financial statements of firms. While applying theory to practice, Bloomberg Terminals and Foreks will also be used |
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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. |
| 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 |
| Week | Subject | Related Preparation |
| 1) | Course Schedule, Expectations | |
| 2) | Introduction to Stock Markets and Basic Valuation | |
| 3) | Primary Value Concepts (Mcap, Equity Value versus Firm Value) | |
| 4) | Interest Rates, Time Value of Money, Present and Future Value, | |
| 5) | Concepts of Risk, Return and Discount Factor | |
| 6) | Financial Statements, Balance Sheet-Income Statement-Cash Flow Statement | |
| 7) | Use of Financial Ratios in Fundamental Analysis | |
| 8) | Mid Term | |
| 9) | Basic Information About Stock Splits, Capital Increase, Bonus Issues, Right Issues, Dividends, Pre-emptive Right. | |
| 10) | Capital Asset Pricing Model (CAPM) Risk Free Rate, Estimation of Beta, Risk Premium, Applications of CAPM | |
| 11) | An Overview of Firm Valuation Models: Asset Based Valuation, Income Based Valuation (Discounted Cash Flow Valuation) | |
| 12) | Relative Valuation (Market Based Valuation). More of the emphasis will be on Relative Valuation | |
| 13) | Relative Valuation: Price/Earnings, Price/Book, Enterprise Value/EBITDA Multiples | |
| 14) | Course Overview |
| Course Notes / Textbooks: | |
| References: | Investment Analysis and Portfolio Management by F.Reilly and K. Brown Investments by Zvi Bodie, Alex Kane, Alan J Marcus, 6th. Edition, McGraw-Hill Şirket Değerlemesinin Esasları: Teorik ve Pratik Yaklaşımlar by Hakkı Öztürk, Türkmen Kitabevi. |
| Semester Requirements | Number of Activities | Level of Contribution |
| Midterms | 1 | % 40 |
| Final | 1 | % 60 |
| Total | % 100 | |
| PERCENTAGE OF SEMESTER WORK | % 40 | |
| PERCENTAGE OF FINAL WORK | % 60 | |
| Total | % 100 | |
| 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 | |
| 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 |