Financial Valuation, Group B

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

• 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