Excellence in
Management
Education

Title
Advanced Valuation
Contacts hour per week
2.0
Quarter
Lecturer
Walker, Thomas
Similar courses
Language
Content
This course has the following structure:
  • Capital Budgeting
  • Discounted Cash Flow Valuation
  • Valuation Using Multiples
  • Residual Income Valuation
  • Sensitivity Analysis and Simulation
  • Event Studies
  • Decision Trees and Real Options
Prerequisites
Capital Market Theory (recommended)
Teaching methods
In class the following teaching methods are used:
  • Interactive development of main results
  • Discussions of major economic implications
  • Analysis of spread sheet based applications
Theories
This course applies the following theories:
  • Discounted Cash Flow (DCF) Valuation
  • Residual Income (RI) Valuation
  • Monte Carlo Simulation
  • Capital Asset Pricing Model (CAPM) and Arbitrage Pricing Theory (APT)
  • Risk-Neutral Valuation
  • Option Pricing Theory
  • Event Study Metodology
  • Valuation Multiples
Literature
Grinblatt, Mark and Titman, Sheridan (2002): "Financial markets and corporate strategy", 2nd ed. - internat. ed., Boston, McGraw-Hill.
Brealey, Richard A., Stewart C. Myers and Franklin Allen (2008): "Principles of Corporate Finance", 9th ed. - internat. ed., Boston, McGraw-Hill.
Kruschwitz, Lutz and Löffler, Andreas (2007): "Discounted cash flow: A Theory of the Valuation of Firms", Chichester, Wiley.
Berk, Jonathan B., and DeMarzo, Peter (2007): "Corporate Finance", internat. ed., Boston, Pearson Education
Further literature
Ruback, R. S., 2002. Capital cash flows: a simple approach to valuing risky cash flows. Financial Management 31, p. 85-103.
Method of examination
Exam 75%
Case studies 25%