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Course 2020-2021 a.y.

30257 - CORPORATE VALUATION

Department of Finance

Course taught in English


Go to class group/s: 31 - 32

BIEM (6 credits - I sem. - OP  |  SECS-P/09)
Course Director:
LAURA ZANETTI

Classes: 31 (I sem.) - 32 (I sem.)
Instructors:
Class 31: LAURA ZANETTI, Class 32: LAURA ZANETTI


Suggested background knowledge

Knowledge of basic financial accounting and basic corporate finance is encouraged.


Mission & Content Summary
MISSION

The course aims at providing students with the conceptual and theoretical framework surrounding valuation issues and the practical tools to address such topics in real-life situations. The main methodologies of corporate valuation are analyzed and the approaches commonly used by practitioners (financial analysts, investment and merchant banks, consulting firms) are critically discussed. Examples focus on corporate valuation issues using DCF, stock market and deal multiples completed by industry-specific as well as case-specific valuation techniques.

CONTENT SUMMARY
  • Introduction: users and uses of valuation; general approaches and specific methods;
  • Financial analysis and cash flows for valuation;
  • Business planning and financial modeling;
  • Discounted cash flows valuation models. The link between value, leverage and growth;
  • The weighted average cost of capital;
  • Multiples valuation. Theoretical determinants and market estimates;
  • Scenario analysis and Monte Carlo simulations;
  • Valuation issues in mergers & acquisitions;
  • Valuation issues in rights issues;
  • Climate issues in finance.

Intended Learning Outcomes (ILO)
KNOWLEDGE AND UNDERSTANDING
At the end of the course student will be able to...

At the end of the course student will have learned the conceptual and theoretical framework surrounding valuation issues and the practical tools to address such topics in real-life situations. Course participants will benefit from:

  • The analytical application on how to prepare and interpret discounted cash flow (DCF) analysis in a variety of contexts.
  • Knowledge and comprehension on how to prepare a comparable valuation analysis.
  • Understanding how to apply the above analysis and comparison of the outcomes of these analytical approaches.
APPLYING KNOWLEDGE AND UNDERSTANDING
At the end of the course student will be able to...
  • Identify the most appropriate methods and approaches to a valuation, based on its final purpose.
  • Apply the different company valuation methods consistently and make reliable assumptions.
  • Choose the most suitable database as well as determine which key features should be adopted in the implementation of the identified methods.
  • Prepare a valuation memorandum compliant to international valuation standards.

Teaching methods
  • Face-to-face lectures
  • Guest speaker's talks (in class or in distance)
  • Exercises (exercises, database, software etc.)
  • Case studies /Incidents (traditional, online)
  • Group assignments
DETAILS

The course will be mainly taught through frontal classes; in addition we will dedicate a few sessions to practical exercises to training in applying valuation and modeling in Microsoft Excel. A selected number of guest speakers will be invited, who will provide insights from their professional experience in valuation in different business scenarios (major investment banks directors, CFOs from industrial corporations, etc). Last, the course will include a group project leading to a full valuation with a presentation to the class. The team assignment will strengthen knowledge of the main databases available for valuation purposes as well as of the connections between business and financial skills.


Assessment methods
  Continuous assessment Partial exams General exam
  • Written individual exam (traditional/online)
  •     x
  • Individual assignment (report, exercise, presentation, project work etc.)
  •     x
    ATTENDING AND NOT ATTENDING STUDENTS

    The assessment will be the result of a Final Written Exam and an Assignment score:

    • Final Written Exam: from 0 to 25 points;
    • Assignment: from 0 to 6 points.

    Teaching materials
    ATTENDING AND NOT ATTENDING STUDENTS

    This course will be based on the following textbooks and materials:

    • Handouts and files uploaded on Blackboard;
    • Corporate Valuation: Measuring the Value of Companies in Turbulent Times; by M. Massari, G. Gianfrate, L. Zanetti, Wiley, 2016;
    • Corporate Valuation Workbook; by A. Ghezzi & L. Zanetti, Egea, 2020.
    Last change 17/08/2020 21:55