154-0927/01 – Financial and real assets valuation (OFRA)
| Gurantor department | Department of Finance | Credits | 10 |
| Subject guarantor | prof. Dr. Ing. Dana Dluhošová | Subject version guarantor | prof. Dr. Ing. Dana Dluhošová |
| Study level | postgraduate | Requirement | Choice-compulsory type B |
| Year | | Semester | winter + summer |
| | Study language | Czech |
| Year of introduction | 2019/2020 | Year of cancellation | |
| Intended for the faculties | EKF | Intended for study types | Doctoral |
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
Occurrence in study plans
Occurrence in special blocks
Assessment of instruction
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