32244 - Corporate Valuation

Academic Year 2022/2023

  • Teaching Mode: Traditional lectures
  • Campus: Forli
  • Corso: Second cycle degree programme (LM) in Economics and management (cod. 9203)

    Also valid for Second cycle degree programme (LM) in Economics and management (cod. 9203)

Learning outcomes

The class investigates the nature of the variables determining the enterprise value and how they can be maximized. At the end of the course the student will be able to: - use the main corporate valuation methods, such as discounted cash flow and relative valuation, along with the estimation practices for computing their inputs; - critically apply these methods, as research evidence recommending specific valuation procedures depending on different corporate operations.

Course contents

The teaching program
Part I: An overview. Uncertainty treatment
Part II: Determination of flows and introduction to business planning
Part III: Financial structure, cost of capital, value
Part IV: DCF - insights
Part V: Relative valuation using multiples

The detailed program

1: Introduction to financial valuation
2: Estimating Cash Flows
3: Choosing the Valuation Perspective and Leverage
5: Estimating Cost of Capital
6: cash flow profiles and valuation procedure
7: The synthetic assessment procedure
8: The Analytical valuation Process
9: Valuation with multiples: theoretical aspects
10: Valuation with multiples: practical aspects
Closing of the course, questions and discussion

Readings/Bibliography

Aswath Damodaran, Dark Side of Valuation, The: Valuing Young, Distressed, and Complex Businesses, (2018).

Massari M., Zanetti L., “Valutazione: Fondamenti teorici e best practice nel settore industriale e finanziario”, McGraw Hill, 2008 (2010).

  • Additional teaching mateprofessor (available on the Faculty website).
    Borsa Italiana Valuation Guide:https://www.borsaitaliana.it/borsaitaliana/pubblicazioni/pubblicazioni/guidaallavalutazione.pdf
 

Teaching methods

1- Lectures by the professor explaining the contents of the course.

2- Excel lab to practice financial modeling

3- A dedicated tutor

Dott.ssa. Chiara Biguzzi: chiara.biguzzi5@unibo.it

 

Assessment methods

The evaluation process
Compulsory: Written exam: COMPANY FINANCIAL VALUATION
Optional: A practical case of company VALUATION.

You need to obtain at least 18/30 to be able to register the final score.

• <18 fail
• 18-23: fair
• 24-27: good
• 28-30: very good
• 30 e lode: excellent

Note: only 4 exams are allowed within the same academic year. overpassing the year without passing (18/30 at least) the course requires following again the course.

Teaching tools

1- Professor office hours

2- A dedicated tutor

Dott.ssa. Chiara Biguzzi: chiara.biguzzi5@unibo.it

3- Online comunications using virtuale, and MS-Teams

Office hours

See the website of Murad Harasheh