154-0927/01 – Financial and real assets valuation (OFRA)

Gurantor departmentDepartment of FinanceCredits10
Subject guarantorprof. Dr. Ing. Dana DluhošováSubject version guarantorprof. Dr. Ing. Dana Dluhošová
Study levelpostgraduateRequirementChoice-compulsory type B
YearSemesterwinter + summer
Study languageCzech
Year of introduction2019/2020Year of cancellation
Intended for the facultiesEKFIntended for study typesDoctoral
Instruction secured by
LoginNameTuitorTeacher giving lectures
DLU30 prof. Dr. Ing. Dana Dluhošová
KRE330 doc. Ing. Aleš Kresta, Ph.D.
Extent of instruction for forms of study
Form of studyWay of compl.Extent
Full-time Examination 28+0
Part-time Examination 28+0

Subject aims expressed by acquired skills and competences

The course is aimed at deepening and expanding knowledge in the framework of valuation of financial and real assets of companies and institutions. The aim of the course is to apply and compare advanced valuation approaches in the process of asset valuation.

Teaching methods

Lectures
Individual consultations

Summary

Compulsory literature:

HITCHNER, J. H. Financial Valuation: Applications and Models. 3rd ed. Wiley, 2011. DAMODARAN, A.: Investment valuation: and Techniques for Determining the Value of Any Asset. John Wiley & Sons, Inc., 2012. KOLLER, T., GOETHARD, M., WESSELS, D.: Valuation: Measuring and Managing the Value of Companies. 5th ed. Wiley. 2010.

Recommended literature:

BREALY, R. A., MYERS, S. C. Teorie a praxe firemních financí. Praha: Computer Press, 2000. COPELAND, T., KOLLER, T., MURRIN, J. Stanovení hodnoty firem. Praha: Victoria Publishing, 1994. DLUHOŠOVÁ, D. et al. (2014). Financial Management and Decision-making of a Company. Analysis, Investing, Valuation, Sensitivity, Risk, Flexibility. SAEI, vol. 28. Ostrava: VŠB-TU Ostrava.

Way of continuous check of knowledge in the course of semester

oral examination

E-learning

Other requirements

There are no other requirements on student.

Prerequisities

Subject has no prerequisities.

Co-requisities

Subject has no co-requisities.

Subject syllabus:

1. General principles of decision making and the role of valuation within it. General assumptions of valuation. (nature of a value, standards of value, purposes of valuation, date of valuation, valuation under risk and flexibility conditions) 2. Business valuation procedure, financial performance forecasting, financial plan creation. (brief characteristics of individual parts of the valuation process, nonoperating assets issues, revenues projection, principles of financial plan creation including risk incorporating) 3. Overview and comparison of basic valuation approaches. (link and nature of income, assets‐based and market valuation approaches) 4. Cost of capital in valuation. (expected vs required rate of return, difference between spot and forward rates in valuation, estimation of cost of capital, iteration approach for estimation of market weights in WACC, influence of capital structure on cost of capital) 5. Formal derivation of income methods. (basic valuation formula for discrete and continuous compounding, derivation (using limits) of the present value of perpetuity, formula for calculation of the present value of perpetuity with the absolute rate of growth) 6. Characteristics and comparison of income approaches. (DCF entity method, DCF equity method, DDM, DCF_APV method, method of capitalized earnings, EVA method) 7. Multi‐stages methods. Terminal value estimation options. (utilization of multi‐stages methods, Gordon growth model, key value driver formula (including derivation and economic interpretation)) 8. Assets‐based approaches and combined approaches of valuation. (book value method, substantial value method, liquidation value method, assumptions and types of combined methods) 9. Market approach of valuation and relative valuation. (valuation of publicly traded companies, multi‐factors Fama‐French models, relative valuation using multiples) 10. Mergers and acquisitions (M&A). (explanation and types of M&A, value of synergy, sources of synergy value)

Conditions for subject completion

Part-time form (validity from: 2019/2020 Winter semester)
Task nameType of taskMax. number of points
(act. for subtasks)
Min. number of points
Examination Examination  
Mandatory attendence parzicipation:

Show history

Occurrence in study plans

Academic yearProgrammeField of studySpec.ZaměřeníFormStudy language Tut. centreYearWSType of duty
2020/2021 (P0412D050003) Finance P Czech Ostrava Choice-compulsory type B study plan
2020/2021 (P0412D050003) Finance K Czech Ostrava Choice-compulsory type B study plan
2019/2020 (P0412D050003) Finance P Czech Ostrava Choice-compulsory type B study plan
2019/2020 (P0412D050003) Finance K Czech Ostrava Choice-compulsory type B study plan

Occurrence in special blocks

Block nameAcademic yearForm of studyStudy language YearWSType of blockBlock owner