Corporate Valuation & Financial Statement Analysis (MASTER)

Students will learn and understand advantages, disadvantages, usefulness and limitations of various models used in corporate valuation and financial analysis (discounted cash flows model, relative valuation, contingent claims valuation, residual income models, etc.). They will also know how to use the models in practice.

Introduction into valuation and financial analysis
Discounted Cash Flow (DCF) valuation
Dividend-Discount Model
Free Cash Flow Model
Estimating Cash Flows
Estimating Discount Rates
Estimating Growth
Probabilistic approaches to valuation
Relative valuation (use of multiples)
The residual income model (RIM)
Abnormal earnings growth model (AEG)
The value of operations and the value of financing decisions;
Valuing corporate control, private companies, M&As, financial institutions, companies in financial distress
Special topics in Valuation
Properties of financial analysts' forecasts and earnings management.
Professional standards (IVS)
Behavioral aspects