154-0322/04 – Valuation and Aquisitions (OA )
| Gurantor department | Department of Finance | Credits | 6 |
| Subject guarantor | prof. Dr. Ing. Dana Dluhošová | Subject version guarantor | prof. Dr. Ing. Dana Dluhošová |
| Study level | undergraduate or graduate | Requirement | Compulsory |
| Year | 1 | Semester | winter |
| | Study language | Czech |
| Year of introduction | 2019/2020 | Year of cancellation | |
| Intended for the faculties | EKF | Intended for study types | Follow-up Master |
Subject aims expressed by acquired skills and competences
This course focuses on deepening of basic knowledge about firm valuation obtained within bachelor study. The aim of the course is to learn students to apply advanced valuation approaches and methods in order to analyze the firm value.
Teaching methods
Lectures
Tutorials
Summary
The content of the course consists of theoretical basics of company valuation, valuation approaches and methods, mergers and acquisitions issues, including accounting and tax aspects.
Compulsory literature:
FABOZZI, F. J., MARKOWITZ, H. (2011). The Theory and Practice of Investment Management: Asset Allocation, Valuation, Portfolio Construction, and Strategies. New Jersey: J. Wiley.
HITCHNER, J. R. (2011). Financial Valuation: Applications and Models. 3rd ed. New Jersey: J. Wiley.
KOLLER, T., GOEDHART, M., WESSELS, D. (2010). Valuation: Measuring and Managing the Value of Companies. 5th ed. New Jersey: Wiley.
MCMILLAN, M. G. et al. (2011). Investments: Principles of Portfolio and Equity Analysis. 1st ed. New York: Wiley.
Recommended literature:
Additional study materials
Way of continuous check of knowledge in the course of semester
písemný zápočet nebo aktivní účast na CFA Institute Research Challenge a ústní zkouška v rámci které student obhajuje samostatně zpracovaný projekt na ocenění vybraného subjektu
E-learning
Other requirements
There are no other requirements on students.
Prerequisities
Subject has no prerequisities.
Co-requisities
Subject has no co-requisities.
Subject syllabus:
1.Explanation of Basic Concepts (Subject of Valuation, Standards of Value), Approaches to the Valuation, Overview of Valuation Methods.
2.Valuation Process and Description of Its Individual Parts.
3.Projecting Revenues Growth (Analysis of the External and Internal Potential, Factors, Sales Forecasting).
4.Financial Analysis for Valuation Purposes (Basic Indicators, Interpretation, Bankruptcy Models, Pyramidal Decomposition, Analysis of Deviation).
5.Cost of Capital in the Valuation Process (Possibilities of the Cost of Capital Estimation). Valuation of the Company under the Risk Conditions (Risk Adjusted Cost of Capital Method, Method of Certainty Equivalent).
6.Financial Plan Creation (Definition, Description of Financial Plan Process, Key Factors).
7.Assets-based Approach for Company Valuation.
8.Discounted Cash Flow (DCF) Approach (Basic Description of DCF Methods, One-stage and Two-stage Method).
9.Discounted Cash Flow (DCF) Approach (Derivation and Significance of Key Value Driver Formula, Basic Relationships within Key Value Driver Formula). Sensitivity Analysis within DCF Methods.
10.Capitalized Earnings Valuation Methods.
11.EVA Method for Valuation (Estimation of the EVA Indicator, Importance and Use of EVA, EVA within Company Valuation, Sensitivity Analysis).
12.Market Approach and Combined Methods for Valuation.
13.Valuation of the Companies with a Limited Perspective.
14.Mergers and Acquisitions - M&A (Definitions, Types of Mergers, Takeover Defence Tactics, Synergy Effect, Sources of Value Growth within M&A).
Conditions for subject completion
Occurrence in study plans
Occurrence in special blocks
Assessment of instruction