Corporate valuation-an Overview-Context of valuation-Approaches to Valuation-Features of thevaluation process: Book value approach, Stock and debt approach, discounted cash flowapproach, Relative valuation approach, option valuation approach-Features of the valuationprocess-Corporate valuation in practice.
Enterprise DCF Model-Analysing historical performance-Estimating the cost of Capital-Forecasting performance-Estimating the continuing value-Calculating and interpreting theresults-Other DCF models: Equity DCF Model: Dividend discount model, free cash flow toEquity (FCFE) model-Adjusted present value model-Economic profit model-Applicability andLimitations of DCF analysis
Relative valuation-Steps involved in Relative valuation-Equity valuation multiples-Enterprisevaluation multiples-Choice of multiple-Best practices using multiples-Assessment of relativevaluation.
Other Non DCF Approaches-Book Value approach-Stock and Debt approach-Strategic approachto valuation-Guidelines for corporate valuation
Advanced issues in valuation-Valuation of companies of different kinds-valuation in differentcontexts-Loose ends of valuation-Valuation of intangible assets: Patents, trademarks, copyrightsand licenses; Franchises; Brands
Value Based Management- Methods and Key premises of VBM-Marakon approach-Alcarapproach-Mckinsey approach-Stern Stewart approach-BCG approach-Lessons from theexperiences of VBM adopters.
Case studies in Valuation - Bharat Hotels company - Bharat Heavy Electricals Limited - BhorukaPower Corporation Limited - Valuation in the Merger of ICICI with ICICI Bank - SaskenCommunication Technologies - Valuation of Infosys BrandPractical Component:Obtain last three years’ balance sheet of any firm that has debt and equity and find out the freecash flow to the firm and free cash flow to the equity for the last three years. Also determine ifthere is any growth in the cash flows to the firm and to the equity holders. Find beta of the firmand compute cost of equity and WACC to finally find the value of the firm