2024/2025
Business Valuation
Type:
Mago-Lego
Delivered by:
HSE Banking Institute
When:
4 module
Open to:
students of all HSE University campuses
Instructors:
Лебедева Надежда Юрьевна
Language:
English
ECTS credits:
3
Course Syllabus
Abstract
The course deals with theoretical and practical aspects of business valuation. Over the course, students will be provided with a deep understanding of the mechanism of valuation, various methods, their advantages, disadvantages and issues. We will discuss the links among a company’s public information, its financial reports, industry outlook and the value of the company. The course includes intense financial modeling activity. Students will prepare one full-blown equity valuation report underpinned by an Excel model, as well as several additional financial models for the most important methods.
Learning Objectives
- The goal of the course is to provide a comprehensive overview of the valuation theory and techniques by discussing and working on actual business valuations
Expected Learning Outcomes
- After the course, students will have necessary knowledge and skills to calculate the intrinsic value of a public or private company, as well as understand and analyze equity reports and vаlue estimates prepared by others.
Course Contents
- Introduction
- Return concepts
- Free cash flow valuation
- Market-based valuation
- Case study
- Industry and market analysis
- Private company valuation
Assessment Elements
- Valuation reportThe valuation report is a group assignment (group size: 5 students). Students will have to prepare a valuation of a company provided by the lecturer. The report includes: • Calculation of the applicable discount rate • DDM valuation based on industry average ratios • Free cash flow valuation • Relative valuation • Conclusion Each report should be accompanied by an Excel model. Student must explain and discuss their choice of methods, ratios and data.
- The final examThe final exam is a written test at the last class session; 2 hours. The exam consists of 2 parts.
Bibliography
Recommended Core Bibliography
- Aswath Damodaran. (2016). Damodaran on Valuation : Security Analysis for Investment and Corporate Finance. Wiley.
- Damodaran, A. (2015). Applied Corporate Finance (Vol. Fourth edition). Hoboken, New Jersey: Wiley. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=1639191
Recommended Additional Bibliography
- Damodaran, A. (2012). Investment Valuation : Tools and Techniques for Determining the Value of Any Asset, University Edition (Vol. 3rd ed). Hoboken, N.J.: Wiley. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=442925