Corporate Valuation (2235.YR.001656.1)

General information

Type:	OBL	Curs:	1	Period:	S semester
ECTS Credits:	3 ECTS

Teaching Staff:

Group	Teacher	Department	Language
Year 1	Douglas John Cumming	Economía, Finanzas y Contabilidad	ENG

Lectures: 30%
Independent work: 70%

Whether it's managing a portfolio, preparing for an imminent merger or acquisition, or marvelling over the newest dollar figure attached to a tech wunderkind, valuation is the key to parsing and understanding the numbers. The course has been designed to train students seeking a deeper understanding of valuation by equipping them with the required toolkit to become analysts, financial officers, or portfolio managers.

Through a series of lectures, students will learn how to estimate the value of any business, small or large, private or public, in a developed or an emerging market. They will also be able to price businesses using earnings, book value, revenue, or other pricing multiples and comparables.

While all the lectures are accompanied by practical examples, some of the lectures will have a dedicated case part, where students will be asked to share their insights on a prepared case.

During this course, participants will:

- Gain the skills needed to estimate the value of any business, small or large, private or public, in a developed or an emerging market

- Learn to use earnings, book value, revenue, or other pricing multiples and comparables to price any business

- Grow their confidence with numbers and develop the storytelling skills you need to complement their numerical skills

1. Introduction to valuation Course introduction, syllabus, administrative introduction. Valuation: The Big Picture. Quick refresh on critical concepts around accounting, finance, and corporate finance, including practical examples ¿ Let¿s make sure we are all on the same page.

2. Discounted cash flow Estimating cash flows, discount rates, and all the pitfalls in between.

3. Relative Valuation The pricing imperative to relative valuation. The most-used multiple: PE ratio. Other earnings multiples. Book value multiple. Revenue multiples and mopping up.

4. The dark side of valuation Cleaning up the loose ends around distressed firms, young companies, growth & financial institutions.

5. Valuation & derivative markets Short history of derivative market development in the context of M&A; from conglomerate premium to conglomerate discount, valuation using option pricing models / real options

6. M&A Introduction into M&A, overall business & process, and some nitty-gritty details of the industry

7. Case Day

8. Valuation: Looking Back & Looking Forward & Looking side-ways

Sessions in this course have a strong focus on applied learning. This course is oriented to developing capabilities to understand financial concepts and applied them in the appropriate context. Lectures are oriented towards solving real valuation challenges.

Stylized cases/exercises are used as pedagogical instrument for theoretical presentation as well as exercises are available for students in order to practice some technical aspects.

Lectures will combine professor exposition and students' participation in class. Case pre-resolution will be needed.

Damodaran, A. Investment Valuation: Tools and Techniques for Determining the Value of Any Asset, 3rd Edition

Group	Teacher	Department
Year 1	Douglas John Cumming	Economía, Finanzas y Contabilidad