30257 - CORPORATE VALUATION
Course taught in English
Lezioni della classe erogate in presenza
Knowledge of basic financial accounting and basic corporate finance is encouraged.
The course aims at providing students with the conceptual and theoretical framework surrounding valuation issues and the practical tools to address such topics in real-life situations. The main methodologies of corporate valuation are analyzed and the approaches commonly used by practitioners (financial analysts, investment and merchant banks, consulting firms) are critically discussed. Examples focus on corporate valuation issues using DCF, stock market and deal multiples completed by industry-specific as well as case-specific valuation techniques.
- Introduction: users and uses of valuation; general approaches and specific methods;
- Financial analysis and cash flows for valuation;
- Business planning and financial modeling;
- Discounted cash flows valuation models. The link between value, leverage and growth;
- The weighted average cost of capital;
- Multiples valuation. Theoretical determinants and market estimates;
- Scenario analysis and Monte Carlo simulations;
- Valuation issues in mergers & acquisitions;
- Valuation issues in rights issues;
- Climate issues in finance.
At the end of the course student will have learned the conceptual and theoretical framework surrounding valuation issues and the practical tools to address such topics in real-life situations. Course participants will benefit from:
- The analytical application on how to prepare and interpret discounted cash flow (DCF) analysis in a variety of contexts.
- Knowledge and comprehension on how to prepare a comparable valuation analysis.
- Understanding how to apply the above analysis and comparison of the outcomes of these analytical approaches.
- Identify the most appropriate methods and approaches to a valuation, based on its final purpose.
- Apply the different company valuation methods consistently and make reliable assumptions.
- Choose the most suitable database as well as determine which key features should be adopted in the implementation of the identified methods.
- Prepare a valuation memorandum compliant to international valuation standards.
- Face-to-face lectures
- Guest speaker's talks (in class or in distance)
- Exercises (exercises, database, software etc.)
- Case studies /Incidents (traditional, online)
- Group assignments
The course will be mainly 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 in different business scenarios (major investment banks directors, CFOs from industrial corporations, etc). Last, the course will include a group project leading to a full valuation with a presentation 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 the result of a Final Written Exam and an Assignment score:
- Final Written Exam: from 0 to 25 points;
- Assignment: from 0 to 6 points.
This course will be based on the following textbooks and materials:
- Handouts and files uploaded on Blackboard;
- Corporate Valuation: Measuring the Value of Companies in Turbulent Times; by M. Massari, G. Gianfrate, L. Zanetti, Wiley, 2016;
- Corporate Valuation Workbook; by A. Ghezzi & L. Zanetti, Egea, 2020.