Business Valuation

2020/2021

Учебный год

ENG

Обучение ведется на английском языке

4

Кредиты

Кто читает:

Департамент финансов

Статус:

Курс по выбору

Когда читается:

2-й курс, 1, 2 модуль

Преподаватель

Назарова Варвара Вадимовна

Course Syllabus

Abstract

The discipline “Business Evaluation” is a study program for Master students, which is based on the knowledge gained by students, from the following courses: “Management Accounting”, “Investment Analysis”, “Financial Management”, “Corporate Finance” “Mergers and Acquisitions”.

Learning Objectives

• In accordance with the stated purpose of the course, focus on the following learning objectives: • - 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); • - Explore the possibilities of software for creating and using the valuation; • - 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.

Expected Learning Outcomes

• 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

Course Contents

• Framework for Corporate Valuation
  • The concept and essence of valuation • Subjects and objects of valuation • Specificity of business as an object of evaluation • Valuation objectives and types of value • Factors affecting the value of business • Principles of business valuation • Approaches and methods used for business valuation • The evaluation process • Features of business valuation in the course of crisis management
• Discounted Cash Flow Models
  • The method of discounting cash flows • The method of capitalization of income (profit)
• Value Creation Company
  • Target settings and standards. • Corporate portfolio management. Study of cost factors. • Develop a strategy for creating value for business units. • Regulatory control of performance. • Forecasting of future cost: parameters, evaluation criteria, methodic shortcomings, evaluation of two-stage models • Determination of the duration and degree of detail of the forecast. Identification of strategic prospects for the company. • Development of scenarios. • Actual data as a guide for forecasting.
• The scheme valuation
  • Capital Cost Estimate: WACC model, criteria, parameter estimation • "Weighing" the market value. • Estimation of alternative costs. • Financing from own and borrowed capital.
• Evaluation of continuing value
  • Evaluation of the prolonged cost: parameters, evaluation criteria, methodological shortcomings, evaluation of two-stage models • Problems with interpretation of the extended cost. Extended value formulas. • Estimation of variables for calculating the extended value. • Non-standard methods for estimating the extended cost
• Methods of assessing and managing the cost of the company based on the concept of economic profit
  • Methods of valuation and management of company value, based on the concept of economic profit • The concept of cost management. Factors and cost indicators • The essence and application of the economic added value (EVA) • The essence and application of the share value-added ratio (SVA)
• Real options valuation
  • Entrepreneurial Opportunities as Real Options • The place of the real options method in the system of approaches and methods of business valuation • The main types of real options • Determining the price of a financial option • Application of the ROV-method in business valuation • Advantages and disadvantages of the optional method
• Comparative Valuation
  • General characteristic of the comparative approach • Basic principles of selection of analogical companies • Characteristics of price multipliers • Formation of the total value of the cost • The application of mathematical methods in the comparative approach • Use of income multipliers to assess loss-making and growing companies
• The cost approach to business valuation
  • Determination of the reasonable market value of the immovable property of the enterprise • Assessment of the market value of machinery and equipment • Valuation of intangible assets • Estimation of the market value of financial investments
• Practice in companies valuation
  • Principles of evaluation • Choice of methodology and method • Analysis of the current market structure • Choice of parameters, rates, period • Calculation. derivation of the final report at cost • Consideration of the possibility of applying the method • Practical example of calculation

Assessment Elements

• Exam
  Exam is carried out at the seminar. The text of the work and the rules for performing the work are sent to the corporate mail of each student. The period for performing the work is determined. The student has the opportunity to complete the test in the sent file or print the document, write the solution and send the scanned work. The time for performing the work is assigned before starting work. Work solutions must be laid out in a special folder created in the LMS, no later than the time suggested at the beginning of the test
• quiz
  Quiz is carried out at the seminar. The text of the work and the rules for performing the work are sent to the corporate mail of each student. The period for performing the work is determined. The student has the opportunity to complete the test in the sent file or print the document, write the solution and send the scanned work. The time for performing the work is assigned before starting work. Work solutions must be laid out in a special folder created in the LMS, no later than the time suggested at the beginning of the test
• class work
• homework

Interim Assessment

• Interim assessment (2 module)
  0.1 * class work + 0.5 * Exam + 0.2 * homework + 0.2 * quiz

Bibliography

Recommended Core Bibliography

• Copeland, T. E., Koller, T., & Murrin, J. (2000). Valuation : Measuring and Managing the Value of Companies (Vol. 3rd ed). New York: John Wiley & Sons, Inc. [US]. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=53431
• Damodaran, A. (2012). Investment Valuation : Tools and Techniques for Determining the Value of Any Asset, University Edition (Vol. 3rd ed). Hoboken, N.J.: Wiley. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=442925

Recommended Additional Bibliography

• Brealey, R. A., & Myers, S. C. (2012). Principles of corporate finance. Slovenia, Europe: Irwin. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsbas&AN=edsbas.BA880E76