Case briefing video coming soon
Apply Valuation
Read the full narration
You have now built the tools in Valuation. The next task is to apply them to the supplied fictional case. Start with the objective and constraints. Record your first decision and the evidence supporting it. Work the numbers using consistent definitions and units. Invite the strongest reasonable challenge. When new information arrives, keep your first record and explain what changes. Finish with a conditional conclusion: what you would do, why, what remains uncertain and what evidence would trigger a review. This is a teaching exercise with fictional information. The quality of your reasoning matters more than whether a simulated outcome later looks favourable.
Review valuation.
Twenty questions in four groups of five: foundations, calculation, interpretation and judgement. Attempt all questions in your notes, then open explanations. Aim for 16/20, revisit misunderstandings and retry. This website version is self-marked practice.
The valuation committee
Write 300–450 words recommending a next step for a hypothetical analysis of Harbour at £8. Use the relative, DCF and SOTP work. No real trade is required and there is no prescribed buy/sell answer.
- Reconcile equity market value and EV.
- Compare at least two methods with a common per-share basis.
- Explain the strongest contrary case and the limits of the sensitivity range.
- Prioritise two evidence gaps and state what would change your mind.
Original practice rubric · 15 marks
- Evidence and arithmetic (4 marks): Correct calculations, units, source trail and clearly stated assumptions.
- Analysis (4 marks): Explains business mechanisms and connects the statements or valuation drivers.
- Balanced judgement (4 marks): Addresses a credible alternative, weighs limitations and reaches a conditional conclusion.
- Communication and review (3 marks): A clear note with prioritised missing evidence and observable review triggers.
Indicative response after your own attempt
The current market cap is160 and EV180 under the simple bridge. Base DCF8.39 offers a small conditional gap, while its6.60–11.36 grid spans below and above price. Relative8.45–10.55 depends on peer quality; SOTP8.70–10.90 depends on division/corporate assumptions and is not breakup proceeds. A defensible analyst may defer pending customer and reinvestment evidence or state a conditional view. Explain weighting, shared forecast risks, terminal dependence and observable review triggers.
This is an On Judgement classroom rubric, not an official AQA mark scheme.
What comes next
Continue to Investing Judgement: build the investment case, then investigate the human side of decisions.