COURSE SUMMARY
The lectures on CORPORATE VALUATION supplements the VT IM CF&CM lectures on the END-TO-END M&A PROCESS DESIGN.
The lectures will be in the upcoming summer term every Monday from 11:20 through 13:00 (room # W 1.03).
COURSE DESCRIPTION & METHODOLOGY
The understanding how companies create value, how they measure value creation and how they finance on equity and debt capital markets their investments to scale their business is the intellectual backbone of any market economy. This is also the essence of this lecture series. We will learn that companies create only value by investing capital they raise from investors on equity and debt capital markets to generate future cash flows at rates of return exceeding their specific risk adjusted cost of capital.
This is paramount to understand in the 2020s as equity capital markets, and here especially technology stocks, travelled fast north to elevated levels. So, what is the fair value bandwidth of such digital Business Designs and platform companies, like Google, Tesla, Uber, Airbnb or Netflix? A paramount question we will consistently address.
Lecture presentations will be released ahead of time. Lectures, articles, case studies and further readings as well as web references will be posted on Moodle.
As mandatory text books we will use:
- Feix, T. (2020). End-to-End M&A Process Design - Resilient Business Model Innovation. Wiesbaden: Springer Science.
- Feix, T. (2021). Valuing Digital Business Designs and Platform Companies - An Integrated Strategic and Financial Valuation Framework. Springer Science Global Book Series: The Future of Business & Science. Wiesbaden: Springer Science.
- Koller, T.; Goedhart, M.; Wessels, D. (2020). Valuation – Measuring and Managing the Value of Companies", 7th edition, 2020. NY: Wiley.
Additional text books, articles, case studies and web-literature will be used for specific lectures. You should also prepare yourself by regularly reading the Economist (weekly) and the Financial Times (daily).
COURSE REQUIREMENTS
Students are expected to carefully review the assigned reading materials before each session, diligently work on the assigned problems, questions, and cases, and to participate actively in class discussions. You should be prepared to spend some time to digest the material, as well as to work on the assignments and case studies. Timely submission of the assigned work is critical. Late submissions will not be accepted.
TIMING & TOPICS
Our flow of topics will be:
# 1 Introduction to Corporate Valuation
# 2 Alternative Valuation Approaches
# 3 Financial & Performance Diagnostics I
# 4 Financial & Performance Diagnostics II
# 5 Forecasting Performance and Cash Flows I: Planning Period
# 6 Forecasting Performance and Cash Flows II: Continuing Value
# 7 Corporate Finance and Cost of Capital: Levered & Unlevered
# 8 The Walk from Operating to Enterprise to Equity Value and Value per Share
# 9 Valuation Framing with Multiples
# 10 Case Study Training for Exam
- Dozent/in: Thorsten Feix