Equity Valuation

Teacher(s)

Petitjean Mikael; Suin Xavier;

Language

English

Main themes

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

Aims

At the end of this learning unit, the student is able to :
1	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.

Teaching methods

Due to the COVID-19 crisis, the information in this section is particularly likely to change.

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

Evaluation methods

Due to the COVID-19 crisis, the information in this section is particularly likely to change.

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

Bibliography

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

Faculty or entity

CLSM