FIRM VALUATION
Année du cours : 1 année(s)
Etablissement : IÉSEG School of Management
Langue : English
Formation(s) dans laquelle/lesquelles le cours apparait :
Période : S2
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)
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. 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).
