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Обычная версия сайта
07
Апрель

Assets Evaluation and Investment Analyses

2023/2024
Учебный год
ENG
Обучение ведется на английском языке
4
Кредиты
Статус:
Курс обязательный
Когда читается:
4-й курс, 2 модуль

Преподаватели

Course Syllabus

Abstract

The course aims at understanding of basics of investment process. The students will learn - the principles of investment analysis - methods of calculation of different investment indices - models of formation of portfolio of investments - principles of selection of sources of investments.
Learning Objectives

Learning Objectives

  • To provide students with theoretical knowledge in the field of investment, investment activity at the level of the main groups of investors and the investment mechanism in various forms of its implementation as a basis for the subsequent study of specialization disciplines.
  • In course how industries and companies can be analyzed in a competitive framework will be explained. Further, how corporations can be valued using models based upon projections of earnings and cash flows will be explained. We look “dividend discount models” as well as “free cash flow” models, where future cash flows and enterprise value are modeled on more explicit assumptions about firms’ “value drivers”. We also describe and calculate alternative measures of residual earnings and discuss the use of “residual income” models, including the widely used EVA™ model. Finally, how various valuation techniques can be put to work in merger, acquisition, restructuring or divesture situations will be showed. Topics include valuation techniques and their application, capital markets and cost of capital; and project appraisal methods and their application.
Expected Learning Outcomes

Expected Learning Outcomes

  • Be able to build a model of financial management, based on a system covering all aspects of the activities of a modern company with the release levels and planning horizon (e.g. using KPI)
  • Gain knowledge and skills in order to make management decisions in this area
  • Know and be able to use special terminology of financial strategic management
  • To know the essence of the economic, organizational and social changes that occur in domestic companies with a shift of emphasis from production to marketing principles of planning and management
  • Be able to build a model of financial management, based on a system covering all aspects of the activities of a modern company with the release levels and planning horizon (e.g. using KPI)
  • Gain knowledge and skills in order to make management decisions in this area
  • Explore the possibilities of software for creating and using the valuation;
  • Know and be able to use special terminology of financial strategic management.
  • Know the patterns of functioning of a modern economy at the macro and micro levels
  • To know the essence of the economic, organizational and social changes that occur in domestic companies with a shift of emphasis from production to marketing principles of planning and management
Course Contents

Course Contents

  • Topic 1. Corporation and the investment process. Corporate investment management system
  • Topic 2. Designing cash flows of an investment project
  • Topic 3. Analysis of the effectiveness of capital investments
  • Topic 4. Investment projects and methods of financing them
  • Topic 5. Evaluation of projects with unequal deadlines.
  • Topic 6. The method of real options when evaluating investment projects
  • Topics 7. Evaluation of the project in conditions of uncertainty and risk
  • Topic 8. Framework for Corporate Valuation
  • Topic 9. Value Creation Company
  • Topic 10. Practice in companies valuation
Assessment Elements

Assessment Elements

  • non-blocking In class activities
    Active participation in discussions, problem solving, preparation of supplementary materials, participation in discussions at lectures and seminars
  • non-blocking Midterm
    Written individual work, including solving tests and problems on the passed materials. Control work is conducted in close book format
  • non-blocking Group work (home work)
    Var.1: 1) propose a business idea to create a new product 2) Description of the company's investment activities: investment potential, main projects being implemented, main areas of investment, sources of investment financing. Key results of ongoing projects. Outline the specifics of the company's investment activities 3) Description of the selected investment project. The purpose of the project, the timing of the project, the main sources of funding. Creation of a calculation model: income, expenses. The choice of the discount rate and its justification. Calculation of project efficiency: key parameters of the assessment. Identifying project risks and developing a risk management policy Provided 2 files: a presentation describing the company's investment policy and the main results of the project Calculation file with a full description of all financial indicators and project results You can also provide a description of the entire job with a project report in a separate document Var.2) A company can be selected as a valuation object The assignment involves justification of the object of valuation, selection of valuation approaches, structured calculation, reasonable conclusions, development of a strategy to increase the value of the selected object. Which companies are of interest: large business, companies in mergers/acquisitions, international business or assets - large, promising for valuation. The calculation file contains a comprehensive calculation of all valuation items, valuation assumptions may be included. The description can be made in the form of a descriptive document, which provides justification of the object of valuation, approaches used, results obtained and recommendations. The description file may be in the form of a presentation, including the rationale for the valuation and the main conclusions. In the conclusion it is necessary to compare the obtained results with the calculations of the company's value proposed on the DIFAN website.
  • non-blocking Exam
    It is conducted in the form of a defence of the project in front of the commission, involves answering questions and comments on the project
Interim Assessment

Interim Assessment

  • 2023/2024 2nd module
    0.25 * Group work (home work) + 0.4 * Midterm + 0.1 * In class activities + 0.25 * Exam
Bibliography

Bibliography

Recommended Core Bibliography

  • Corporate finance: theory and practice, Damodaran, A., 2001
  • Investment valuation : tools and techniques for determining the value of any asset, Damodaran, A., 2012
  • Valuation: measuring and managing the value of companies, Copeland, T., 2000
  • Инвестиционные рычаги максимизации стоимости компании. Практика российских предприятий, Теплова, Т.В., 2007

Recommended Additional Bibliography

  • Инвестиции : учебник для бакалавров, Теплова Т.В., 2012
  • Корпоративные финансы: перспективы и реальность. Управление стоимостью компании: Сборник статей, , 2006