Advanced Valuation for Corporate Finance (AFCP859)

This unit develops skills required in the assessment and valuation of projects, companies or divisions, and is designed for those with a role in business development, strategic planning or advising companies on financing, investment or restructuring decisions. Students will be equipped to address a wide range of valuation situations by being able to critically evaluate and apply the variety of valuation techniques used in practice. Building on the principles from Corporate Finance we consider in detail the assumptions and implementation issues involved in valuation models, recent developments in cost of capital estimation, valuation methodologies and real options. Valuation in an international context will also be considered. Considerable emphasis is placed on assessing the robustness of valuations and how to incorporate risk into valuation and decision making. The unit provides opportunities to develop financial modelling skills, and provides exposure to @Risk software (used for Monte Carlo simulation), and access to S&P Capital IQ.


Learning Outcomes:

  1. Analyse and explain the range of decision making situations that require valuations.
  2. Critically evaluate and develop valuation techniques and models for a range of business contexts.
  3. Assess risk issues and develop reasoned recommendations.
  4. Demonstrate critical reflection in applying valuation models to real world situations.
  5. Demonstrate skills in assessing cost of capital and report preparation.

Topics:

  1. Review of Valuation Framework
  2. Alternative Valuation Models
  3. Using the Valuation Models
  4. Risk and Valuation
  5. Preparing a Cost of Capital Recommendation
  6. Financial Modelling and Forecasting Tools
  7. Strategic Flexibility and Value
  8. Real Options: Advanced Valuation Issues
  9. Special Topics in Valuation

Prerequisite Units:

Lecturers:

Unit Guides:

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