At the end of the course, the student should be able to:
– Critically describe the characteristics of standard valuation techniques
– Use Bloomberg analytics and extract data for determining the value of equity or companies
– Estimate the cost of the various sources of financing used by a firm
– Assess the sensitivity of value estimates to model assumptions
– Build a spreadsheet valuation model in Microsoft Excel and link it to real-time data from Bloomberg
– Breakdown complex organizational problems using the appropriate methodology
– Convey prowerful messages using contemporary presentation techniques
– Construct expert knowledge from cutting-edge information
– Employ state-of-the-art management techniques
– Formulate strategically-appropriate solutions to complex and unfamiliar challenges in their professional field
– Effectively apply in-depth specialized knowledge to take advantage of contemporary opportunities in their professional field
This course focuses on the typical tasks conducted by financial analysts in determining the value of financial assets (debt, equity or companies) and covers the techniques traditionnally applied in valuation. After an introduction to valuation techniques (discounted cash flows, relative valuation, and contingent claim methods) and to key concepts in valuation (discount rates and cash flows), the sensitivity of value estimates to the model assumptions is carefully examined. This course rests on Bloomberg/Thomson Reuters EIKON data and analytics and provides students with a solid background to value companies on the basis of professionnal financial data services. At the end of this course, students are expected to build their own valuation model in Microsoft Excel and apply it to an existing company.
