Equity Valuation

Teacher(s)

Petitjean Mikael; Suin Xavier;

Language

English

Prerequisites

None (at the master level)

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

Learning outcomes

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

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

Evaluation methods

- 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