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. Understand the range of decision making situations that require valuations, and how to develop an appropriate valuation  approach
  2. Apply appropriate valuation techniques, particularly DCF, multiples and real options models, to assess and value projects, business segments and companies
  3. Ability to critically assess a valuation, and assess the link between value, value drivers and underlying economics of a project or a business
  4. Understand how to assess the impact of risk on the value of a project or business, and how to respond to the presence of risk in the relevant decision making situation
  5. Able to develop and critically assess financial models used to support a valuation
  6. Demonstrate technical proficiency in the use of valuation models, be able to critically assess the merits and pitfalls of alternatives valuation approaches, and be able to apply appropriate valuations techniques to real world situations
  7. Understand the issues in estimating a cost of capital for business valuations and demonstrate proficiency in preparing an expert report for a company.

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: Financial modelling and forecasting tools
  6. Strategic flexibility and value
  7. Real options: Advanced valuation issues
  8. Special topics in valuation

Prerequisite units:

Lecturer:

Steve Bishop

Unit guide:

Advanced Valuation for Corporate Finance 2017  - The link will provide a list of guides for this unit. If the desired term/location is not listed, please view the latest one available.

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