VALUATION OF ENTERPRISES - BMEGT35M109

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. Knows the aims and the toolset of business valuation, the methods of financial statement analysis and prediction, the cost of capital estimation techniques, the unique challenges of the different valuation tasks, the process and critical steps of business valuation.
2. Is familiar with the methodology of corporate finance and investment decisions, the methodology of analysing corporate investments and other investments, as well as the possibilities of financing and tax matters of companies. (EFMD-ILO connections: Finance - Knowledge (KKK) - T5 - ILO 1: Analytical thinking)
3. Possesses the skills of problem recognition, formulation, and resolution, as well as the modern, theoretically rigorous mathematical-statistical, econometric, and modelling methods of information collection and processing, and are also aware of their limitations. Is familiar with the planning and management regulations, as well as the professional and ethical standards, of the enterprise, economic organisation, and project. (EFMD-ILO connections: Finance - Knowledge (KKK) - T3 - ILO 5: Digital proficiency)

1. Is capable of plan, organise, and perform her(his) study process on her (his) own, find and review the relevant literature of the subject, use a critical approach and filter the information available, identify connections among financial and valuation models, perform calculations needed to a support decision making.
2. Is capable of preparing complex financial analyses. (EFMD-ILO connections: Finance - Skills (Specific competences of the educational programme) - SpecK1 - ILO 1: Analytical thinking)
3. Is able to provide high quality analysis, decision preparation and decision-making for companies. (EFMD-ILO connections: Finance - Skills (KKK) - K4 - ILO 1: Analytical thinking)
4. Following the acquisition of practical knowledge and experience, the student manages medium and large-sized enterprises and complex organisational units, performs comprehensive economic functions within an economic organisation, plans and directs complex management processes, and manages resources. Is capable of effective work in an international, multicultural environment. (EFMD-ILO connections: Finance - Skills (KKK) - K2 - ILO 4: Communication)

1. Is open to review and adapt innovations of finance, co-operates with his fellow students and instructors during the learning process, eager to extend her (his) knowledge, takes profit of the opportunities offered by the IT equipment and tools.
2. Demonstrates creativity and a proactive approach to identifying and solving problems in their work. (EFMD-ILO connections: Finance - Attitude (KKK) - A6 - ILO 5: Digital proficiency)
3. Is open to cooperation and participation in group work. (EFMD-ILO connections: Finance - Attitude (KKK) - A5 - ILO 6: Teamwork)

1. Is open to accept well-based critics, co-operates with her (his) fellow students when solving tasks, is able to take decisions on her (his) own, can make well-based judgements during her (his) decision process, has a good overview of the importance of her (his) responsibility and can estimate the consequences of her(his) decisions.
2. Independently selects and applies relevant problem-solving methods in areas of strategic and managerial importance to the organisation, and independently performs economic analysis, decision-support and advisory tasks. (EFMD-ILO connections: Finance - Autonomy and responsibility (KKK) - F1 - ILO 4: Communication)

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.

• Ajánlott / Recommended: (1) Koller, Tim – Goedhart, Marc – Wessels, David (2020): Valuation: Measuring and Managing the Value of Companies (Wiley Finance) 7th Edition, Wiley (2) Damodaran, Aswath (2012): Investment Valuation: Tools and Techniques for Determining the Value of Any Asset, 3rd Edition, Wiley (3) 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 (4) 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.

EFMD-ILO connections: -Online test: Formative check of financial concepts, models, regulatory knowledge and computation methods. (Finance ILO 1) Szakterminológia ismeretének ellenőrzése. (Finance ILO 4) -Classroom activity and case study: Use of ICT knowledge and softwares. (Finance ILO 5) Joint problem solving, joint decision making. (Finance ILO 6)

• 1. mid-term tests: 50
• 2. mid-term tests: 50
• Extra points for classroom activity: 10
• Total: 100

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The mid-term tests can be retaken jointly one time on the retake-week.

Consulted with the Faculty Student Representative Committee, approved by the Vice Dean for Education, valid from: 04.05.2026.

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.