Insegnamento a.a. 2026-2027

1)      Introduction and approaches to valuation

2)      Cost of capital

3)      Free cash flows and Financial modelling/Business planning

4)      DCF (analytical valuation + terminal value) with growth - theory and cases

5)      Effect of inflation on valuation

6)      Fundamental principles of relative valuation: multiples valuation - theory and cases

7)      Equity valuation: Dividend Discount Model (DDM) and other equity models – theory and cases

8)      Equity as an option (Merton) - theory and cases

9)      Sensitivity to Uncertainty in Valuation and Monte Carlo Analysis

10)  M&A theory and cases

11)  Return valuation for an equity fund: (Equity + LBO) – theory and cases

12)  Financing and Valuing Start ups

13)  Valuing equity in distressed firms

14)  Other special cases of valuation – theory and cases

• must have developed a clear theoretical perspective of all the issues about firm valuation
• must know the different application alternatives provided by literature and practice and must be able to choose the most suitable ones for the specific context that is proposed to them
• must be able to identify and define the most important hypotheses to be introduced in the valuation process
• must be able to apply all the different valuation techniques learned, correctly considering all the variables and parameters required, avoiding any application pitfall
• must be able to critically read a valuation report and the results contained therein, managing to identify the most important elements of potential distortion

• must have developed a clear theoretical perspective of all the issues about firm valuation
• must know the different application alternatives provided by literature and practice and must be able to choose the most suitable ones for the specific context that is proposed to them
• must be able to identify and define the most important hypotheses to be introduced in the valuation process
• must be able to apply all the different valuation techniques learned, correctly considering all the variables and parameters required, avoiding any application pitfall
• must be able to critically read a valuation report and the results contained therein, managing to identify the most important elements of potential distortion

• Lectures
• Guest speaker's talks (in class or in distance)
• Practical Exercises
• Individual works / Assignments
• Collaborative Works / Assignments

The course will be exclusively taught through frontal classes; in addition, we will dedicate a few sessions to practical exercises to training in applying valuation and modeling in Microsoft Excel.

A selected number of guest speakers will be invited, who will provide insights from their professional experience in valuation within different business scenarios.

The course will include a compulsory group project on a comprehensive valuation assignment, to be presented to the class. The team assignment will strengthen knowledge of the main databases available for valuation purposes as well as of the connections between business and financial skills.

The assessment will be based on a Final Written Exam and a Group Assignment. The Exam lasts 60 minutes and it will be structured as follows:

• 12 multiple choice questions, either based on theory or on quick calculations. Questions are worth 1,5 points and have only 1 correct answer out of 4 possible choices. No penalty is assigned to a wrong pick.
• 1 short theoretical essay question, worth 4 points
• 1 short problems, worth 4 points

The Exam will be held on campus. The interface for the essay questions and the short problems will be plain writing. No access to Microsoft Excel will be available.

The Assignment is compulsory and it will give up to 6 additional points (in order to reach a total mark of 32 points). It will be presented in class during the second part of the course.

The score will be valid for any exam session in the current Academic Year (i.e. up to and including the September 2027 exam).

The details of the Group Assignment will be published on the midterm break on Blackboard.

It is a closed-book test and no formula sheet is allowed.

Students are allowed a basic scientific calculator (i.e. no calculator that has an internal storage or that allows symbolic and NPV calculations).

For non-attending students, the exam will be oral. This because the written exam does not cover the additional material and has a lower overall weight.

• The exam will be based on lecture notes, slides, materials posted on Blackboard (unless specified otherwise) and on the textbook's chapters and problems reported in the detailed course content section of this program and on other guidelines on Blackboard.
• The required course textbook is: A. Damodaran, Investment Valuation, University Edition: Tools and Techniques for Determining the Value of any Asset 4th Edition, Wiley, 2025 (The chapters required will be analytically indicated on the syllabus of the course)

In addition to the program already indicated in the syllabus, non-attending students are required to study Part One: “Foundations of Value” from: Valuation, 7th edition, T. Koller, M. Goedhart, D. Wessels, McKinsey & Company, 2020, pages 3–173, including the related proofs presented in the textbook.