Equity Valuation [ MGEST2168 ]

None (at the master level)

The goal of this course is to teach students the most
effective tools used to value equity and make investment
decisions.
Key topics include:
- Discounted Dividend Valuation
- Free Cash Flow Valuation
- Market-Based Valuation: Price and Enterprise Value
Multiples
- Residual Income Valuation
- Private Company Valuation

At the end of this course, students will be able to:
- select the most appropriate valuation method for a given
company by being able to identify its strengths and
weaknesses;
- analyze and restate the financial statements (including
the off-balance items) to extract the all the information
required to correctly value companies;
- calculate the value of a company in a spreadsheet by
indicating all the required intermediate steps;
- do in-depth homework by preparing several case studies
and by submitting answers to MCQs.

The contribution of this Teaching Unit to the development and command of the skills and learning outcomes of the programme(s) can be accessed at the end of this sheet, in the section entitled “Programmes/courses offering this Teaching Unit”.

- Written Exam (MCQs + computer-based applications)
- Homework (in-class participation, preparation of case
studies, etc.)
- Valuation Assignment (group of two students)

- Lectures based on readings
- Spreadsheet applications
- Case studies
- MCQs

PINTO et al. (2010), Equity Asset Valuation, 2nd Edition,
Wiley.