16MBAFM406 Corporate Valuation syllabus for MBA


Unit-1 Corporate valuation 8 hours

Corporate valuation-an Overview-Context of valuation-Approaches to Valuation-Features of the valuation process: Book value approach, Stock and debt approach, discounted cash flow approach, Relative valuation approach, option valuation approach-Features of the valuation process-Corporate valuation in practice.

Unit-2 Enterprise DCF Model 12 hours

Enterprise DCF Model-Analysing historical performance-Estimating the cost of Capital- Forecasting performance-Estimating the continuing value-Calculating and interpreting the results-Other DCF models: Equity DCF Model: Dividend discount model, free cash flow to Equity (FCFE) model-Adjusted present value model-Economic profit model-Applicability and Limitations of DCF analysis

Unit-3 Relative valuation 10 hours

Relative valuation-Steps involved in Relative valuation-Equity valuation multiples-Enterprise valuation multiples-Choice of multiple-Best practices using multiples-Assessment of relative valuation. Other Non DCF Approaches-Book Value approach-Stock and Debt approach-Strategic approach to valuation-Guidelines for corporate valuation

Unit-4 Advanced issues in valuation 8 hours

Advanced issues in valuation-Valuation of companies of different kinds-valuation in different contexts-Loose ends of valuation-Valuation of intangible assets: Patents, trademarks, copyrights and licenses; Franchises; Brands

Unit-5 Value Based Management 10 hours

Value Based Management- Methods and Key premises of VBM-Marakon approach-Alcar approach-Mckinsey approach-Stern Stewart approach-BCG approach-Lessons from the experiences of VBM adopters.

Unit-6 Case studies in Valuation 8 hours

Case studies in Valuation - Bharat Hotels company - Bharat Heavy Electricals Limited - Bhoruka Power Corporation Limited - Valuation in the Merger of ICICI with ICICI Bank - Sasken Communication Technologies - Valuation of Infosys Brand

(Question Paper: 50% Theory and 50% Problems)

 

Practical Component:

  • Obtain last three years’ balance sheet of any firm that has debt and equity and find out the free cash flow to the firm and free cash flow to the equity for the last three years. Also determine if there is any growth in the cash flows to the firm and to the equity holders. Find beta of the firm and compute cost of equity and WACC to finally find the value of the firm

Last Updated: Tuesday, January 24, 2023