Valuation of Businesses - BMEGT35ML70

The aim of the course is to offer an introduction into basic approaches and methods of business valuation. Key challenges 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 student is familiar with 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. The student is able to plan, organise, and perform her(his) study process on her (his) own,
2. find and review the relevant literature of the subject,
3. perform calculations needed to a support decision making.
4. use a critical approach and filter the information available,
5. identify connections among financial and valuation models.

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

Lectures, written and oral communication, use of IT tools and techniques, optional tasks alone and in groups.

• Koller, Tim – Goedhart, Marc – Wessels, David (2020): Valuation: Measuring and Managing the Value of Companies (Wiley Finance) 7th Edition, Wiley
• 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
• 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 Businesses: Valuing Young, Distressed, and Complex Businesses 3rd Edition, Pearson FT Press

Assessment of the learning outcomes described under 2.2. is based on written exam.

written exam

• written exam: 100

according to TVSZ

according to TVSZ

Consulted with the Faculty Student Representative Committee, approved by the Vice Dean for Education, valid from: 04.11.2024.

Subject includes the topics detailed in the course syllabus to ensure learning outcomes listed under 2.2. can be achieved.