VALUATION OF ENTERPRISES - BMEGT35M109

The aim of the course is to offer an introduction into basic approaches and methods of business valuation. Key chal-lenges and limitations of each method will also be presented. Participants may gain an understanding of both the income- (cash flow-) based, multiple-based and asset-based approaches. They will review the process and rules of financial analysis and planning, as well those of estimating the cost of capital. We also cover unique challenges of special valuation tasks and the application of discounts and premiums. The aim of the course is to make the students able to solve daily valuation tasks using the knowledge gained.

1. the aims and the toolset of business valuation,
2. the methods of financial statement analysis and prediction,
3. the cost of capital estimation techniques,
4. the unique challenges of the different valuation tasks,
5. the process and critical steps of business valuation.

1. plan, organise, and perform her(his) study process on her (his) own,
2. find and review the relevant literature of the subject,
3. use a critical approach and filter the information available,
4. identify connections among financial and valuation models,
5. perform calculations needed to a support decision making.

1. is open to review and adapt innovations of finance,
2. co-operates with his fellow students and instructors during the learning process,
3. eager to extend her (his) knowledge,
4. takes profit of the opportunities offered by the IT equipment and tools.

1. is open to accept well-based critics,
2. co-operates with her (his) fellow students when solving tasks,
3. is able to take decisions on her (his) own,
4. can make well-based judgements during her (his) decision process,
5. has a good overview of the importance of her (his) responsibility and can estimate the consequences of her(his) decisions.

Lectures, written and oral communication, use of IT tools and techniques, optional tasks alone and in groups. Students are required to bring along and use their own laptop equipped with Microsoft Office (version 2013 or later) during the classes.

• Koller, Tim – Goedhart, Marc – Wessels, David (2020): Valuation: Measuring and Managing the Value of Companies (Wiley Finance) 7th Edition, Wiley
• Damodaran, Aswath (2012): Investment Valuation: Tools and Techniques for Determining the Value of Any Asset, 3rd Edition, Wiley
• Damodaran, Aswath (2018): Dark Side of Valuation, The: Valuing Young, Distressed, and Complex Busi-nesses: Valuing Young, Distressed, and Complex Businesses 3rd Edition, Pearson FT Press
• Pratt, Shannon P. (2008): Valuing a Business: The Analysis and Appraisal of Closely Held Companies (McGraw-Hill Library of Investment and Finance), 5th Edition, McGraw-Hill Education

Assessment of the learning outcomes described under 2.2. is based on two written mid-term tests.

Based on two written mid-term tests

• written: 100

The written test can be retaken once for free of charge

Consulted with the Faculty Student Representative Committee, approved by the Vice Dean for Education, valid from: 10.10.2022.

Subject includes the topics detailed in the course syllabus to ensure learning outcomes listed under 2.2. can be achieved. Timing of the topics will be arranged by the calendar or other circumstances in each semester.