Discounted Cash Flow Valuation
Valuation Using Multiples
Residual Income Valuation
Sensitivity Analysis and Simulation
Decision Trees and Real Options
Capital Market Theory (recommended)
In class the following teaching methods are used:
Interactive development of main results
Discussions of major economic implications
Analysis of spread sheet based applications
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)
Option Pricing Theory
Event Study Metodology
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
Ruback, R. S., 2002. Capital cash flows: a simple approach to valuing risky cash flows. Financial Management 31, p. 85-103.