154-0522/02 – Valuation and Acquisitions (VaA)

Gurantor departmentDepartment of FinanceCredits5
Subject guarantorprof. Dr. Ing. Zdeněk ZmeškalSubject version guarantorprof. Dr. Ing. Zdeněk Zmeškal
Study levelundergraduate or graduateRequirementCompulsory
Year1Semesterwinter
Study languageEnglish
Year of introduction2019/2020Year of cancellation
Intended for the facultiesEKFIntended for study typesFollow-up Master
Instruction secured by
LoginNameTuitorTeacher giving lectures
GUR022 Ing. Petr Gurný, Ph.D.
ZME40 prof. Dr. Ing. Zdeněk Zmeškal
Extent of instruction for forms of study
Form of studyWay of compl.Extent
Full-time Credit and Examination 2+1

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:

DLUHOŠOVÁ, Dana et al. Financial Management and Decision-making of a Company: Analysis, Investing, Valuation, Sensitivity, Risk, Flexibility. SAEI, vol. 28. Ostrava: VSB-Technical University of Ostrava, 2014. 258 p. ISBN 978-80-248-3619-5. HITCHNER, James R. Financial Valuation, Applications and Models. 3rd ed. New Jersey: John Wiley & Sons, 2011. 1320 p. ISBN 978-0470506875. KOLLER, T., M. GOEDHART a D. WESSELS. Valuation: Measuring and Managing the Value of Companies. 6th ed. New York: McKinsey & Company Inc., 2015. 848 p. ISBN 978-1118873700.ARZAC, E. R.: Valuation for mergers, buyouts and restructuring. J. Wiley, 2003. DAMODARAN, A.: Investment valuation:and Techniques for Determining the Value of Any Asset. John Wiley & Sons, Inc., 2012. MEITNER, M. The Market Approach to Comparable Company Valuation. Physica-Verlag, 2006. PRATT, S.P., NICULITA, A.V.: Valuing a Business: The Analysis and Appraisal of Closely Held Companies. 5th Ed. McGraw-Hill, 2007. PRATT, S.P:, GRABOWSKI, R.J.: Cost of Capital: Applications and Examples. 4th Ed. Wiley, 2010. RAWLEY, T.; GUP, B.E.: The Valuation Handbook: Valuation Techniques from Today's Top Practitioners. Wiley, 2009.

Recommended literature:

ARZAC, R. Enrique. Valuation For Mergers, Buyouts, And Restructuring. 2nd ed. New Jersey: John Wiley & Sons, 2007. 384 p. ISBN 978-8126524129. DAMODARAN, Aswath. Investment Valuation: Tools and Techniques for Determining the Value of any Asset. 3nd ed. New Jersey: John Wiley & Sons, 2012. 992 p. ISBN 978-1118130735. DAMODARAN, Aswath. Damodaran on Valuation: Security Analysis for Investment and Corporate Finance. 2nd ed. New Jersey: John Wiley & Sons, 2006. 696 p. ISBN 978-0471751212. REILLY, R., SCHWEIHS, R.: Valuing Intangible Assets. 1st Ed. McGraw-Hill, 1998.

Way of continuous check of knowledge in the course of semester

zápočet nebo aktivní účast na CFA Institute Research Challenge a ústní zkouška

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

Full-time form (validity from: 2019/2020 Winter semester)
Task nameType of taskMax. number of points
(act. for subtasks)
Min. number of points
Credit and Examination Credit and Examination 100 (100) 51
        Credit Credit 35 (35) 18
                Písemný zápočet Project 35  18
        Examination Examination 65 (65) 33
                Ústní zkouška Oral examination 65  33
Mandatory attendence parzicipation:

Show history

Occurrence in study plans

Academic yearProgrammeField of studySpec.ZaměřeníFormStudy language Tut. centreYearWSType of duty
2022/2023 (N0412A050005) Finance FRP P English Ostrava 1 Compulsory study plan
2021/2022 (N0412A050005) Finance FRP P English Ostrava 1 Compulsory study plan
2020/2021 (N0412A050005) Finance FRP P English Ostrava 1 Compulsory study plan
2019/2020 (N0412A050005) Finance FRP P English Ostrava 1 Compulsory study plan

Occurrence in special blocks

Block nameAcademic yearForm of studyStudy language YearWSType of blockBlock owner
Incoming students - MS 2022/2023 Full-time English Choice-compulsory 163 - International Office stu. block
Incoming students- MS 2021/2022 Full-time English Choice-compulsory 163 - International Office stu. block