Financial Valuation - Financial Valuation - Group D1
Participation Prerequisites
Foundations of Finance (recommended)
Corporate Finance (recommended)
Financial Statements Analysis (recommended)
Course Content
The objective of this course is to provide students with an introduction to financial valuation. We will start by looking at some valuation basics. We will then talk about the most important determinants of firm value: cash flows, growth in cash flows, and the riskiness of cash flows. Finally, we will spend considerable time on various valuation approaches: fundamental valuation approaches (e.g., DCF-WACC, DDM) and relative valuation approaches (e.g., trading multiples). We will discuss strengths and weaknesses of the different valuation approaches and situations in which each valuation approach is most suitable.
There will be two case studies in which we are going to apply the different valuation approaches. Moreover, I plan to have a guest lecture from an industry expert.
Roadmap
1) Valuation Basics
2) Cash Flows
3) Cost of Capital
4) Fundamental Valuation
5) Relative Valuation
Intended Learning Outcomes and Competencies
- Get an overview of financial valuation
- Understand the drivers of firm value
- Know how to determine cash flows
- Know how to determine the cost of capital
- Understand and apply fundamental valuation approaches
- Understand and apply relative valuation approaches
- Identify strengths and weaknesses of different valuation approaches
- Know when to use which valuation approach
Instruction Type
Presence
Form of Examination
Written exam
Literature
- Damodaran, A., 2006, Damodaran on Valuation: Security Analysis for Investment and Corporate Finance, 2nd edition, Wiley.
- The textbook is available as eBook in the library.
Next events
| Lecture | We, 30.10.2024 | 15:30 Uhr | 18:45 Uhr | K-101 Hörsaal / Lecture Hall |
| Lecture | We, 06.11.2024 | 15:30 Uhr | 18:45 Uhr | K-101 Hörsaal / Lecture Hall |
| Lecture | Th, 14.11.2024 | 08:00 Uhr | 11:15 Uhr | K-101 Hörsaal / Lecture Hall |
| Lecture | Th, 21.11.2024 | 08:00 Uhr | 11:15 Uhr | H-001 Hörsaal / Lecture Hall |
| Lecture | We, 27.11.2024 | 15:30 Uhr | 18:45 Uhr | K-101 Hörsaal / Lecture Hall |
| Lecture | Th, 05.12.2024 | 08:00 Uhr | 11:15 Uhr | K-101 Hörsaal / Lecture Hall |
Lecturers
Indicative Student Workload
| Self-Study | 64 h |
| Contact Time | 24 h |
| Examination | 2 h |