32244 - CORPORATE VALUATION

Conoscenze e abilità da conseguire

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.

Contenuti

Theoretical framework

Approaches and methods of valuation

Discounted Cash Flow (DCF) method: typical procedures

Estimating cash flows

Estimating the cost of capital

Estimating the growth rate

Relative valuation: theoretical framework and practical issues

ERASMUS STUDENTS: we suggest to attend this course only if you are a master student or if you have already attended a course of Corporate Finance. The course of Corporate Valuation can be considered an advanced course of Corporate Finance.

Testi/Bibliografia

- Lecture slides and notes. Slides will be available on the platform “virtuale.unibo.it”.

Damodaran on Valuation: Security Analysis for Investment and Corporate Finance, Second Edition. Chapters: 1, 2, 4, 5, 7, 8 and 9.

Principles of Corporate Finance, R. Brealey, S. Myers and F. Allen, 2019.

Chapter: 19

Metodi didattici

The program of the course will be presented in-depth in class. Theoretical and practical lessons will be provided. Practical lessons (n.2) will be based on the resolution of exercises and on the presentation of corporate case studies.

Modalità di verifica e valutazione dell'apprendimento

Valuation is based on a written exam through the EOL platform (on line exam).

The exam is composed of 9 Multiple Choice Questions and 1 exercise. The exam lasts 50 minutes. The Corporate Valuation module belongs to the integrated course “Corporate Valuation, Mergers and Acquisitions” whose final mark will be the weighted average of the mark obtained in “Corporate Valuation” module (2/3) and the mark obtained in “Mergers and Acquisitions” module” (1/3).

The correct answer to a Multiple Choice Question gives 2 points. There is no penalty for the wrong answer and there is only one correct answer. The resolution of the exercise gives up to 10 points. The final mark, expressed in the thirties, will be calculated as (Mark/28*31).

Graduation grid of marks:

- 18-23: sufficient preparation and analytical skills on a limited number of topics covered in the course.

- 24-27: adequate preparation and analytical skills but with some limitations; good operational skills, even if not particularly articulated.

- 28-30: very good knowledge of many topics covered in the course; good operational and critical skills.

- 30L: excellent and exhaustive knowledge of the topics covered in the course; critical analysis and connection skills.

Students are not allowed to use notes or books.

The exam text provides the list of the most important formulas necessary to answer to Multiple Choice Questions and to solve the exercise.

The course will be taught during the first semester. While the first two calls will be set during the winter period (January-February), the third and the fourth call will be set in June and in September respectively.

PLEASE NOTE: The assessment methods indicated may change based on the evolution of the health emergency.

Strumenti a supporto della didattica

The teaching tools are the projector and the blackboard for exercises.

Orario di ricevimento

Consulta il sito web di Barbara Petracci