AU kursuskatalog arkiv

5375: Corporate Valuation ( efterår 2010 - 10 ECTS )

Rammer for udbud

• Uddannelsessprog: engelsk
• Niveau:   COURSE LEVEL: Elective MSc project course  
• Semester/kvarter:  SEMESTER FOR WHICH THE COURSE DESCRIPTION APPLIES: Fall 2010  
• Timer per uge:   NUMBER OF HOURS PER WEEK: 2x2 (in total 48 hours)  
• Deltagerbegrænsning: RESTRICTIONS ON ADMISSION: Max 30 participants  
• Undervisningssted: Århus
• Hovedområde: Det Samfundsvidenskabelige Fakultet
• Udbud ID: 23385

Formål

LEARNING OBJECTIVES:

The students should be able to

• Describe a complete valuation of a listed company in a written project report including a historical financial analysis of the company`s annual reports, a strategic analysis of the company and a DCF- or RI-analysis to complete the valuation
• Formulate and apply classical DCF- and RI-analysis including estimation of the model parameters, and reflect on the assumptions behind the two models with a critical view
• Apply at least one other approach to the valuation, such as the use of multiples and peer groups for the company which is valuated, and/or a real option valuation, and/or an abnormal earnings growth approach
• Evaluate the results of the valuation in the project report at the oral examination including the literature used in the course.

Indhold

COURSE DESCRIPTION:

The course gives the students a competence to make a valuation of a company in the light of the more recent trends in Shareholder Value philosophy, corporate governance, real options, strategy and mergers & acquisitions.

The course combines the participants' prior knowledge of finance and investment theory, financial statement analysis and corporate strategy, and is therefore primarily suited for masters students in the final part of their study program.

The students have to write a project report on the valuation of preferably a listed company in groups of 2, and this report have to be handed in and approved by the lecturer after a presentation in class at the end of the course.

COURSE SUBJECT AREAS:

• 1. Introduction - basic principles in value creation
• 2. The specific procedure in corporate valuation
• a. Strategic analysis
• b. Financial statement analysis
• c. Valuation models (DCF, RI and others)
• d. Terminal values, real options and multiples
• e. The stock market and investors
• 3. Value creation - including mergers and disinvestments
• 4. Valuation of conglomerates
• 5. Valuation of innovative and venture companies
• 6. Conclusion - and project work advice

Faglige forudsætninger

REQUIRED COURSES (progression):

The following courses or similar courses are required :

3376: Financial markets and corporate strategy (3 ^rd year BA-course)

4105: Theories of the firm

5317: Advanced Financial Reporting

Underviser

LECTURER: Peter Ove Christensen

Undervisnings- og arbejdsform

TEACHING METHOD:

The first 8-9 weeks of the course are joint lectures including guest lectures with discussion of the literature and some cases with active student participation.

Next, the students have to work on the project report in groups of 2 on a self-selected company, primarily a Danish listed company, and this report have to be presented in class at the final weeks of the course.

Students should be prepared to put a considerable personal effort in the project assignment, and part of the literature is for self-study.

TEACHING LANGUAGE:  English

Litteratur

LITERATURE:

Penman, S. H.: Financial Statement Analysis and Security Valuation , McGraw-Hill, latest edition. All chapters

Christensen, P.O., and G. A. Feltham: Equity Valuation , forthcoming in Foundations and Trends in Accounting . All chapters

A collection of supplementary articles and notes will be handed out as the course proceeds.

(approx. 400 pages)

Bedømmelse

• Mdt. + mat., bedømt efter 7-skala med ekstern censur
5 xxxxx

FORM OF ASSESSMENT:

Individual oral exam of 20 minutes' duration based on the written project report and the course curriculum.

EXAMINATION AIDS ALLOWED: All - except any means of electronic communication including calculators, mobile phones and PCs.