103-006-IO1 Company Valuation
Study program: | International Finance (M.Sc.) |
Academic level and semester: | Master, 2nd semester |
ECTS credits/workload per semester: | 5 / 125 |
Contact hours per week/contact hours per semester: | 4 / 45 |
Type/Teaching method: | Lecture + Tutorial (mandatory) |
| Language of instruction: | English |
Frequency: | Summer semester |
Lecturer: | Prof. Dr. Dr. Dietmar Ernst |
Content: | In the class “Practice of Company Valuation” students forecast and value a DAX listed company. 1. Financial Analysis of a Dax Listed Company a. Analysis of the annual reports of the past five years b. Financial statement analysis of the annual reports with financial ratios 2. Financial Planning a. Application of the principles of financial modeling b. Set up of an integrated five year income statement and balance sheet plan 3. Calculation of the Cash Flows of a Dax Listed Company a. Operating free cash flows b. Cash flows to equity 4. Calculation of Cost of Capital of a Dax Listed Company a. Cost of equity b. Cost of debt c. Weighted average cost of capital 5. Valuation of a Dax Listed Company a. WACC approach b. Equity approach c. APV approach d. Periodic WACC |
Textbooks: | Ernst D., Häcker, J. (2017, editors): Financial Modeling - Business excellence in Financial Management, Corporate Finance, Portfolio Management and Derivatives, Basingstoke (England) and New York (US) |
Recommended for: | Undergraduates, graduates |
Prerequisites: | Background in Business/Economics, Finance and Accounting (intermediate level) |
Restrictions: | None |
Assessment: | Written exam |