| Course Unit Code | 154-0522/02 |
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| Number of ECTS Credits Allocated | 5 ECTS credits |
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| Type of Course Unit * | Choice-compulsory |
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| Level of Course Unit * | Second Cycle |
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| Year of Study * | |
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| Semester when the Course Unit is delivered | Winter Semester |
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| Mode of Delivery | Face-to-face |
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| Language of Instruction | English |
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| Prerequisites and Co-Requisites | Course succeeds to compulsory courses of previous semester |
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| Name of Lecturer(s) | Personal ID | Name |
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| ZME40 | prof. Dr. Ing. Zdeněk Zmeškal |
| GUR022 | Ing. Petr Gurný, Ph.D. |
| Summary |
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| The content of the course consists of theoretical basics of company valuation, valuation approaches and methods, mergers and acquisitions issues, including accounting and tax aspects. |
| Learning Outcomes of the Course Unit |
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| This course focuses on deepening of basic knowledge about firm valuation obtained within bachelor study. The aim of the course is to learn students to apply advanced valuation approaches and methods in order to analyze the firm value. |
| Course Contents |
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1. Explanation of Basic Concepts (Subject of Valuation, Standards of Value), Approaches to the Valuation, Overview of Valuation Methods.
2. Valuation Process and Description of Its Individual Parts.
3. Projecting Revenues Growth (Analysis of the External and Internal Potential, Factors, Sales Forecasting).
4. Financial Analysis for Valuation Purposes (Basic Indicators, Interpretation, Bankruptcy Models, Pyramidal Decomposition, Analysis of Deviation).
5. Cost of Capital in the Valuation Process (Possibilities of the Cost of Capital Estimation). Valuation of the Company under the Risk Conditions (Risk Adjusted Cost of Capital Method, Method of Certainty Equivalent).
6. Financial Plan Creation (Definition, Description of Financial Plan Process, Key Factors).
7. Assets-based Approach for Company Valuation.
8. Discounted Cash Flow (DCF) Approach (Basic Description of DCF Methods, One-stage and Two-stage Method).
9. Discounted Cash Flow (DCF) Approach (Derivation and Significance of Key Value Driver Formula, Basic Relationships within Key Value Driver Formula). Sensitivity Analysis within DCF Methods.
10. Capitalized Earnings Valuation Methods.
11. EVA Method for Valuation (Estimation of the EVA Indicator, Importance and Use of EVA, EVA within Company Valuation, Sensitivity Analysis).
12. Market Approach and Combined Methods for Valuation.
13. Valuation of the Companies with a Limited Perspective.
14. Mergers and Acquisitions - M&A (Definitions, Types of Mergers, Takeover Defence Tactics, Synergy Effect, Sources of Value Growth within M&A).
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| Recommended or Required Reading |
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| Required Reading: |
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DLUHOŠOVÁ, Dana et al. Financial Management and Decision-making of a Company: Analysis, Investing, Valuation, Sensitivity, Risk, Flexibility. SAEI, vol. 28. Ostrava: VSB-Technical University of Ostrava, 2014. 258 p. ISBN 978-80-248-3619-5.
HITCHNER, James R. Financial Valuation, Applications and Models. 3rd ed. New Jersey: John Wiley & Sons, 2011. 1320 p. ISBN 978-0470506875.
KOLLER, T., M. GOEDHART a D. WESSELS. Valuation: Measuring and Managing the Value of Companies. 6th ed. New York: McKinsey & Company Inc., 2015. 848 p. ISBN 978-1118873700.ARZAC, E. R.: Valuation for mergers, buyouts and restructuring. J. Wiley, 2003.
DAMODARAN, A.: Investment valuation:and Techniques for Determining the Value of Any Asset. John Wiley & Sons, Inc., 2012.
MEITNER, M. The Market Approach to Comparable Company Valuation. Physica-Verlag, 2006.
PRATT, S.P., NICULITA, A.V.: Valuing a Business: The Analysis and Appraisal of Closely Held Companies. 5th Ed. McGraw-Hill, 2007.
PRATT, S.P:, GRABOWSKI, R.J.: Cost of Capital: Applications and Examples. 4th Ed. Wiley, 2010.
RAWLEY, T.; GUP, B.E.: The Valuation Handbook: Valuation Techniques from Today's Top Practitioners. Wiley, 2009.
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DLUHOŠOVÁ, Dana et al. Financial Management and Decision-making of a Company: Analysis, Investing, Valuation, Sensitivity, Risk, Flexibility. SAEI, vol. 28. Ostrava: VSB-Technical University of Ostrava, 2014. 258 p. ISBN 978-80-248-3619-5.
HITCHNER, James R. Financial Valuation, Applications and Models. 3rd ed. New Jersey: John Wiley & Sons, 2011. 1320 p. ISBN 978-0470506875.
KOLLER, T., M. GOEDHART a D. WESSELS. Valuation: Measuring and Managing the Value of Companies. 6th ed. New York: McKinsey & Company Inc., 2015. 848 p. ISBN 978-1118873700.ARZAC, E. R.: Valuation for mergers, buyouts and restructuring. J. Wiley, 2003.
DAMODARAN, A.: Investment valuation:and Techniques for Determining the Value of Any Asset. John Wiley & Sons, Inc., 2012.
MEITNER, M. The Market Approach to Comparable Company Valuation. Physica-Verlag, 2006.
PRATT, S.P., NICULITA, A.V.: Valuing a Business: The Analysis and Appraisal of Closely Held Companies. 5th Ed. McGraw-Hill, 2007.
PRATT, S.P:, GRABOWSKI, R.J.: Cost of Capital: Applications and Examples. 4th Ed. Wiley, 2010.
RAWLEY, T.; GUP, B.E.: The Valuation Handbook: Valuation Techniques from Today's Top Practitioners. Wiley, 2009.
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| Recommended Reading: |
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ARZAC, R. Enrique. Valuation For Mergers, Buyouts, And Restructuring. 2nd ed. New Jersey: John Wiley & Sons, 2007. 384 p. ISBN 978-8126524129.
DAMODARAN, Aswath. Investment Valuation: Tools and Techniques for Determining the Value of any Asset. 3nd ed. New Jersey: John Wiley & Sons, 2012. 992 p. ISBN 978-1118130735.
DAMODARAN, Aswath. Damodaran on Valuation: Security Analysis for Investment and Corporate Finance. 2nd ed. New Jersey: John Wiley & Sons, 2006. 696 p. ISBN 978-0471751212.
REILLY, R., SCHWEIHS, R.: Valuing Intangible Assets. 1st Ed. McGraw-Hill, 1998.
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ARZAC, R. Enrique. Valuation For Mergers, Buyouts, And Restructuring. 2nd ed. New Jersey: John Wiley & Sons, 2007. 384 p. ISBN 978-8126524129.
DAMODARAN, Aswath. Investment Valuation: Tools and Techniques for Determining the Value of any Asset. 3nd ed. New Jersey: John Wiley & Sons, 2012. 992 p. ISBN 978-1118130735.
DAMODARAN, Aswath. Damodaran on Valuation: Security Analysis for Investment and Corporate Finance. 2nd ed. New Jersey: John Wiley & Sons, 2006. 696 p. ISBN 978-0471751212.
REILLY, R., SCHWEIHS, R.: Valuing Intangible Assets. 1st Ed. McGraw-Hill, 1998.
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| Planned learning activities and teaching methods |
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| Lectures, Tutorials |
| Assesment methods and criteria |
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| Tasks are not Defined |