Bachelor
2022/2023
Valuation of the Company
Category 'Best Course for Career Development'
Category 'Best Course for Broadening Horizons and Diversity of Knowledge and Skills'
Type:
Elective course (Economics)
Area of studies:
Economics
Delivered by:
School of Finance
Where:
Faculty of Economic Sciences
When:
4 year, 1, 2 module
Mode of studies:
offline
Open to:
students of one campus
Instructors:
Пупшев Андрей Сергеевич,
Svetlana Grigorieva,
Nikita Pirogov,
Dmitry Poduhovich,
Irina Skvortsova
Language:
English
ECTS credits:
6
Contact hours:
56
Course Syllabus
Abstract
The course will introduce students to the most frequently used quantitative valuation techniques. The main topics covered include (1) discounted cash flow methods (2) relative valuation using multiples (3) asset-based approach. Particular attention is paid to evaluation of individual groups of assets under the net asset value method: financial assets, real estate, tangible real property, intangible assets. The focus of the course is on the evaluation of companies in emerging capital markets. Students will learn how to conduct firm valuation in terms of high levels of macroeconomic uncertainty, illiquid capital markets, and high levels of political risks. Participants are provided with the opportunity to work in small teams and value different groups of assets and firms in emerging capital markets. The course is taught in collaboration with B1 Group.
Learning Objectives
- to provide students with sufficient theoretical knowledge and practical experience to be able to value a company using three traditional approaches (income approach, market approach, asset-based approach)
Expected Learning Outcomes
- apply different valuation techniques such as Dividend-models, FCFF, FCFE, relative valuation and asset based valuation
- apply the primary methods to measure value of different groups of company assets
- identify and analyze a company’s value drivers and relate these drivers to the value enhancement process
- understand the features of corporate valuation in emerging capital markets
- understand the importance and apply the discounts and premiums in business valuation (control premium, discount for lack of control, discount for lack of marketability)
- understand the main steps of business valuation
Course Contents
- Introduction to Valuation
- Income approach: discounted cash flow methods, capitalization method
- Market approach: public company method, merger and acquisition method.
- Cost approach: overview, individual asset valuation procedures – intangible assets
- Cost approach: individual asset valuation procedures – real estate, machinery and equipment
Assessment Elements
- Class participation
- Team projectsThere will be two cases and one analytical task during the course
- Final examFinal exam is a set of theoretical and practical questions in the form of test (multiple choice), open questions and problems to be solved in-class in written form.
Interim Assessment
- 2022/2023 2nd module0.5 * Final exam + 0.14 * Class participation + 0.36 * Team projects
Bibliography
Recommended Core Bibliography
- Mard, M. J., Hyden, S. D., & Hitchner, J. R. (2007). Valuation for Financial Reporting : Fair Value Measurements and Reporting, Intangible Assets, Goodwill and Impairment (Vol. 2nd ed). Hoboken, N.J.: Wiley. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=218516
Recommended Additional Bibliography
- King, A. M. (2006). Fair Value for Financial Reporting : Meeting the New FASB Requirements. Hoboken, N.J.: Wiley. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=159616
- Pratt, S. P., & Niculita, A. V. (2008). Valuing a Business : The Analysis and Appraisal of Closely Held Companies (Vol. 5th ed). New York: McGraw-Hill Professional. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=219493