GRA 6220 Corporate Valuation
GRA 6220 Corporate Valuation
The main objective of the course Corporate Valuation is to provide students with the tools to carry out a business valuation using (mainly) residual income valuation techniques. The course combines accounting principles and investment principles to answer the question: How do I account for value so that I can challenge stock prices with some confidence?
The students will through the course acquire the necessary knowledge about valuation in order to write a credible valuation report based on accounting numbers. The students will be able to differentiate, compare and assess different valuation methods.
By the end of the course, students will be able to:
- understand and interpret dividends, cash-flows, earnings, and book values and will be able to use them for valuation purposes.
- prepare a thorough valuation including sensitivity analyses on the key assumptions.
- understand the factors determining the quality of accounting information.
- infer the market expectations about growth implicitly contained in the stock prices.
- demonstrate written communication skills with respect to the analysis of companies’ financial statement information from a valuation perspective.
By the end of the course, students will be able to critically evaluate the information available in the annual reports of corporations. Students will also be able to critically assess the quality of accounting numbers. They will further be able to understand the implications of poor accounting quality in financial statement analysis and valuation.
- Introduction to corporate valuation
- Overview over different valuation methods
- Residual income valuation models
- Valuation and active investing
- Assessment of earnings management
- The role of incentive-useful information for valuation
- Value relevance of accounting information
- Writing a valuation research report
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Please note that while attendance is not compulsory in all courses, it is the student’s own responsibility to obtain any information provided in class.
All parts of the assessment must be passed in order to get a grade in the course.
All courses in the Masters programme will assume that students have fulfilled the admission requirements for the programme. In addition, courses in second, third and/or fourth semester can have specific prerequisites and will assume that students have followed normal study progression. For double degree and exchange students, please note that equivalent courses are accepted.
Disclaimer
Deviations in teaching and exams may occur if external conditions or unforeseen events call for this.
6298 Financial Statement Analysis and Valuation or similar.
GRA 6225 Financial Statement Analysis).
| Assessments |
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Exam category: Submission Form of assessment: Written submission Weight: 30 Grouping: Group (1 - 3) Duration: 1 Week(s) Comment: Assignment (mid-term paper) Exam code: GRA 62201 Grading scale: ECTS Resit: Examination when next scheduled course |
Exam category: Submission Form of assessment: Written submission Invigilation Weight: 70 Grouping: Individual Support materials:
Duration: 3 Hour(s) Comment: Written examination under supervision. Exam code: GRA 62202 Grading scale: ECTS Resit: Examination when next scheduled course |
All exams must be passed to get a grade in this course.
A course of 1 ECTS credit corresponds to a workload of 26-30 hours. Therefore a course of 6 ECTS credits corresponds to a workload of at least 160 hours.