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Course 2023-2024 a.y.

30257 - CORPORATE VALUATION

Department of Finance

Course taught in English



Go to class group/s: 31 - 32

BIEM (6 credits - I sem. - OP  |  SECS-P/09)
Course Director:
LAURA ZANETTI

Classes: 31 (I sem.) - 32 (I sem.)
Instructors:
Class 31: LAURA ZANETTI, Class 32: LAURA ZANETTI


Synchronous Blended: Lezioni erogate in modalità sincrona in aula (max 1 ora per credito online sincrona)

Suggested background knowledge

Knowledge of basic financial accounting and basic corporate finance is encouraged.


Mission & Content Summary
MISSION

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.

CONTENT SUMMARY
  • 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.

Intended Learning Outcomes (ILO)
KNOWLEDGE AND UNDERSTANDING
At the end of the course student will be able to...

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.
APPLYING KNOWLEDGE AND UNDERSTANDING
At the end of the course student will be able to...
  • 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.

Teaching methods
  • 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
DETAILS

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.


Assessment methods
  Continuous assessment Partial exams General exam
  • Written individual exam (traditional/online)
  •     x
  • Individual assignment (report, exercise, presentation, project work etc.)
  •     x
    ATTENDING STUDENTS
    • The assessment will combine the Attending Written Exam and the Group Assignment:
      • Attending Written Exam: awarding up to 25 points;
      • Group Assignment: awarding up to 8 points.
    • The Attending Written Exam will be structured as a combination of:
      • multiple choice questions, presented in order to test the ability to recognize basic knowledge and concepts regarding corporate valuation methods and corporate reorganisations;
      • practical exercises, aimed at testing the application of the analytical tools illustrated during the course;
      • short open-ended essay questions, presented in order to test the students’ ability to describe and critically analyse the key theoretical frameworks and applications in valuation.
    • The Group Assignment will be assessed taking into account the quality of the written deliverables prepared by the groups and the quality of an oral in-class presentation. The written deliverables will test the ability to read, analyze historical financial statements, retrieve data from financial databases, apply valuation methods and write a formal valuation report. The oral presentation will test the ability to deliver to an audience in an effective, concise and organized way the results of the valuation process and to reply to critical observations on the presentation.
    • Any student can be assessed as an Attending student, provided they can actively take part in the Group Assignment.
    • A student that does not participate in the Group Assignment will be awarded a zero score in it but they will still be able to sit the Attending Written Exam and gain its portion of the final mark (maximum grade 25/30).
    NOT ATTENDING STUDENTS
    • Students that are unable to actively take part in the Group Assignment will have the option be assessed as Non-Attending students. This option is open to:
      • Bocconi-home students engaged in an Exchange Program or in an internship during the classes period (for the sake of clarity, incoming Bocconi Exchange students are not elibigle, as they are able to attend the Course);
      • Students engaged in an internship during the classes period;
      • Repeat students from past Academic Years (“studenti in debito d’esame”).
    • Students that do not meet any of these requirements can only be assessed as attending students. The teachers will entertain exceptions to the rule for extraordinary situations (e.g. serious health issues) on a case-by-case basis. Additional details will be provided in the detailed class syllabus.
    • Please note that students meeting the requirements above are not forced to opt for the Non-Attending assessment. If they wish to choose the Attending structure they are welcome to do so, provided that they respect the Group Assignment rules, in particular provided that they contribute to the group’s work and they attend the in-class presentation.
    • The Assessment will be based on the Non-Attending Written Exam, worth 33 points, structured as a combination of:
      • multiple choice questions, presented in order to test the ability to recognize basic knowledge and concepts regarding corporate valuation methods and corporate reorganisations;
      • practical exercises, aimed at testing the application of the analytical tools illustrated during the course;
      • short open-ended essay questions, presented in order to test the students’ ability to describe and critically analyse the key theoretical frameworks and applications in valuation.

    Teaching materials
    ATTENDING STUDENTS

    The Attending Written exam 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, 2nd Edition; by A. Ghezzi & L. Zanetti, Egea, 2022.
    NOT ATTENDING STUDENTS

    The Non-Attending Written exam will be based on the following textbooks and materials:

    • Handouts and files uploaded on Blackboard, including papers for Non-Attending students study;
    • Corporate Valuation: Measuring the Value of Companies in Turbulent Times; by M. Massari, G. Gianfrate, L. Zanetti, Wiley, 2016;
    • Corporate Valuation Workbook, 2nd Edition; by A. Ghezzi & L. Zanetti, Egea, 2022.
    Last change 20/04/2023 13:37