Instructional goals
This course provides a structured and practice oriented introduction to business valuation, integrating theoretical foundations with real world applications. Students learn how to assess firm value using discounted cash flow (DCF) models, relative valuation, and transaction multiples. The course emphasizes analytical rigor, professional standards, and the ability to interpret valuation outcomes in strategic and financial contexts.
Prerequisites
• Introductory Corporate Finance
• Financial Accounting
• Basic Excel proficiency
Intended learning outcomes
By the end of the course, students will be able to:
• Understand the conceptual foundations of value and valuation approaches.
• Apply DCF techniques, including FCFF and FCFE models.
• Estimate discount rates using CAPM, WACC, and market data.
• Perform relative valuation using trading and transaction multiples.
• Analyze valuation outputs and communicate results effectively.
• Critically evaluate valuation assumptions and sensitivities.
Course Contents
Session 1 — Introduction to Valuation
Session 2 — Financial Statement Analysis for Valuation
Session 3 — Cash Flow Measurement (FCFF & FCFE)
Session 4 — Cost of Capital (WACC)
Session 5 — DCF Valuation (I)
Session 6 — DCF Valuation (II)
Session 7 — Relative Valuation (I)
Session 8 — Relative Valuation (II)
Session 9 — Valuation in M&A
Session 10 — Valuation of High Growth and Distressed Firms
Session 11 — Special Topics
Session 12 — Course Review & Exam Preparation
Reference Books
Required Readings
• A. Damodaran, Investment Valuation, University Edition: Tools and Techniques for Determining the Value of any Asset, John Wiley & Sons Inc, 2025
• Selected academic articles and case studies (provided on the course platform).
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Recommended Readings
• T. Koller, M.Goedhart, D.Wessels, Valuation: Measuring and Managing the Value of Companies, University Edition, John Wiley & Sons Inc, 2025
• R. J. Grabowski, S. P. Pratt Cost of Capital, Wiley, 2014________________________________________
Teaching Methods
• Lectures with theory and worked examples
• In class exercises and short cases
• Excel based valuation modelling
• Discussion of real world valuation cases and market data
Assessment Method
Final Written Exam (100%)
The exam evaluates theoretical understanding and practical application. It includes:
• Conceptual questions
• Short numerical exercises
• A mini valuation case
Thesis assignment criteria
Presentation of a thesis project consistent with the program. Full marks inthe final exam.
Week 1
Session 1 — Introduction to Valuation
• What is value? Intrinsic vs. relative valuation
• Overview of valuation methods
• Case discussion: Why valuations differ
Week 2
Session 2 — Financial Statement Analysis for Valuation
• Recasting financial statements
• Non recurring items and adjustments
• Working capital and invested capital
Week 3
Session 3 — Cash Flow Measurement (FCFF & FCFE)
• Operating vs. financing cash flows
• Calculating FCFF and FCFE
• Common modelling pitfalls
Week 4
Session 4 — Cost of Capital (WACC)
• CAPM, beta estimation, risk free rate, market premium
• Capital structure and WACC
• Practical estimation using market data
Week 5
Session 5 — DCF Valuation (I)
• Forecasting value drivers
• Terminal value (Gordon growth & exit multiples)
• Mid year convention
Week 6
Session 6 — DCF Valuation (II)
• Sensitivity analysis
• Scenario analysis
• Interpreting DCF results
Week 7
Session 7 — Relative Valuation (I)
• Trading multiples: EV/EBITDA, P/E, EV/Sales
• Peer group selection
• Adjustments and normalizations
Week 8
Session 8 — Relative Valuation (II)
• Transaction multiples
• Control premiums and synergies
• Market benchmarks
Week 9
Session 9 — Valuation in M&A
• Deal rationale and value creation
• Accretion/dilution analysis
• Synergy valuation
Week 10
Session 10 — Valuation of High Growth and Distressed Firms
• Start ups and early stage companies
• Negative cash flows and survival probabilities
• Distressed valuation frameworks
Week 11
Session 11 — Special Topics
• ESG and valuation
• Intangibles and intellectual capital
• Valuation in private equity
Week 12
Session 12 — Course Review & Exam Preparation
• Integrated valuation case
• Review of key concepts
• Exam practice questions