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Establishment
Language of instruction
English
Teaching content
FINANCE
This course occurs in the following program(s)
IESEG Degree - Programme Grande École
- Crédits ECTS: 2.00
Training officer(s)
M.PETITJEAN
Stakeholder(s)
A.BURIETZ, Astrid SALZMANN
Présentation
Prerequisite
1. Introduction to Bloomberg or Eikon
2. Key concepts in corporate finance and financial markets (time value of money, NPV, IRR, stock and bond valuation, capital structure, cost of funding)
2. Key concepts in corporate finance and financial markets (time value of money, NPV, IRR, stock and bond valuation, capital structure, cost of funding)
Goal
At the end of this course, students will be able to:
1. use state-of-the-art techniques to value international companies with different cultures and values
2. make a clear investment decision explained in a financial analysis report written in English
3. quantify organizational challenges in terms of risk and growth using the appropriate methodology
4. estimate future free cash flows generated by the firm
5. estimate the sensitivity of the model to different assumptions
6. customize a valuation model in Microsoft Excel and link it to Eikon data
1. use state-of-the-art techniques to value international companies with different cultures and values
2. make a clear investment decision explained in a financial analysis report written in English
3. quantify organizational challenges in terms of risk and growth using the appropriate methodology
4. estimate future free cash flows generated by the firm
5. estimate the sensitivity of the model to different assumptions
6. customize a valuation model in Microsoft Excel and link it to Eikon data
Presentation
1. Introductory thoughts on valuation, analysis of the asset, overview of the main valuation techniques (relative valuation, discounted cash flow method; firm value vs equity value)
2. Market multiples
3. Estimating the enterprise value
4. Introducing earnings quality (due diligence for EBITDA)
3. Estimating the cost of capital: equity risk and cost of equity (detailed analysis and calculation of the CAPM components: risk-free rate; historical and implied equity risk premium; historical, fundamental and accounting beta), cost of debt and cost of preferred stock
4. FCFF and FCFE models, calculation of cash flows, building growth forecast.
5. Concluding remarks (sensitivity analysis; adjustments for country risk in valuations in emerging markets).
2. Market multiples
3. Estimating the enterprise value
4. Introducing earnings quality (due diligence for EBITDA)
3. Estimating the cost of capital: equity risk and cost of equity (detailed analysis and calculation of the CAPM components: risk-free rate; historical and implied equity risk premium; historical, fundamental and accounting beta), cost of debt and cost of preferred stock
4. FCFF and FCFE models, calculation of cash flows, building growth forecast.
5. Concluding remarks (sensitivity analysis; adjustments for country risk in valuations in emerging markets).
Modalités
Organization
| Type | Amount of time | Comment | |
|---|---|---|---|
| Présentiel | |||
| Cours interactif | 16,00 | ||
| Travail personnel | |||
| Group Project | 18,00 | ||
| Charge de travail personnel indicative | 9,00 | ||
| Autoformation | |||
| Lecture du manuel de référence | 2,00 | ||
| E-Learning | 5,00 | ||
| Overall student workload | 50,00 | ||
Evaluation
End-of-chapter questions and related MCQs will have to be answered before the end of the course. A company valuation assignement will have to be written and completed within the nex 4 weeks.
| Control type | Duration | Amount | Weighting |
|---|---|---|---|
| Autres | |||
| Projet Collectif | 0,00 | 0 | 70,00 |
| Contrôle continu | |||
| QCM | 0,00 | 0 | 30,00 |
| TOTAL | 100,00 | ||
Ressources
Bibliography
Damodaran, A (2012): Investment Valuation: Tools and Techniques for Determining the Value of Any Asset, John Wiley and Sons, Inc. -
• Wiley Study Guide for 2015 Level II CFA Exam, Volume 3, Study Sessions 10 to 12, John Wiley & Sons. -
• Titman, S. and Martin, J. D. (2007), Valuation: The Art and Science of Corporate Investment Decisions, Addison-Wesley -
• Koller, T., Goedhart, M. and Wessels, D. (2005), Valuation: Measuring and Managing the Value of Companies, John Wiley and Sons, Inc. -
• Pearl and Rosenbaum (2013), Investment Banking: Valuation, Leveraged Buyouts, and Mergers and Acquisitions, 2 nd Edition, Wiley. -
• Wiley Study Guide for 2015 Level II CFA Exam, Volume 3, Study Sessions 10 to 12, John Wiley & Sons. -
• Titman, S. and Martin, J. D. (2007), Valuation: The Art and Science of Corporate Investment Decisions, Addison-Wesley -
• Koller, T., Goedhart, M. and Wessels, D. (2005), Valuation: Measuring and Managing the Value of Companies, John Wiley and Sons, Inc. -
• Pearl and Rosenbaum (2013), Investment Banking: Valuation, Leveraged Buyouts, and Mergers and Acquisitions, 2 nd Edition, Wiley. -
Internet resources