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Regular version of the site
Master 2019/2020

Company and Business Evaluation

Type: Elective course (Financial Analyst)
Area of studies: Finance and Credit
Delivered by: HSE Banking Institute
When: 1 year, 4 module
Mode of studies: offline
Master’s programme: Financial Analyst
Language: English
ECTS credits: 3
Contact hours: 32

Course Syllabus

Abstract

The course deals with theoretical and practical aspects of business valuation. Over the course, students will be provided with a deep understanding of the mechanism of valuation, various methods, their advantages, disadvantages and issues. We will discuss the links among a company’s public information, its financial reports, industry outlook and the value of the company. The course includes intense financial modeling activity. Students will prepare one full-blown equity valuation report underpinned by an Excel model, as well as several additional financial models for the most important methods.
Learning Objectives

Learning Objectives

  • The course deals with theoretical and practical aspects of business valuation. Over the course, students will be provided with a deep understanding of the mechanism of valuation, various methods, their advantages, disadvantages and issues. We will discuss the links among a company’s public information, its financial reports, industry outlook and the value of the company. The course includes intense financial modeling activity. Students will prepare one full-blown equity valuation report underpinned by an Excel model, as well as several additional financial models for the most important methods.
Expected Learning Outcomes

Expected Learning Outcomes

  • After the course, students will have necessary knowledge and skills to calculate the intrinsic value of a public or private company, as well as understand and analyze equity reports and value estimates prepared by others.
Course Contents

Course Contents

  • 1) Introduction
  • 2) Return concepts
  • 3) Discounted dividend valuation
  • 4) Free cash flow valuation
  • 5) Market-based valuation
  • 6) Private company valuation
  • 7) Communicating valuation results
Assessment Elements

Assessment Elements

  • non-blocking Valuation report
  • non-blocking Final exam
    Exam is to be passed in written form. The platform for the exam is Moodle, edu.alt-invest.ru. Students have to enter the exam 5 minutes in advance. The platform may be tested earlier, as the students did their home assignments on it. Computer has to meet the following requirements: Internet access. To participate in the exam the student is obliged to: enter the system with his login and password, which were used during the course. During the exam the students are prohibited to: use outside help, discuss the tasks with each other. During the exam the students are allowed to: use any reference materials, use Excel for calculations. Short-term disconnection period is less than 10 minutes. Long-term disconnection period is more than 10 minutes. In case of long-term disconnection the student is prohibited to pass the exam. Exam retake procedure equals to the first try.
Interim Assessment

Interim Assessment

  • Interim assessment (4 module)
    0.3 * Final exam + 0.7 * Valuation report
Bibliography

Bibliography

Recommended Core Bibliography

  • Zahronyana, B. D., & Mahardika, D. P. K. (2019). Capital Adequacy Ratio, Non Performing Loan, Net Interest Margin, Biaya Operasional Pendapatan Operasional Dan Loan to Deposit Ratio Terhadap Financial Distress. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsbas&AN=edsbas.8927BF07
  • ZIMIN, N. E., KARZAEVA, N. N., ROKOTYANSKAYA, V. V., SEVASTYANOVA, E. V., & VOLODINA, N. G. (2018). Multiplicative Model of Return on Assets in Evaluation of Company’s Financial Security. Ad Alta: Journal of Interdisciplinary Research, 8(1), 17–24. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=asn&AN=130791007

Recommended Additional Bibliography

  • Yaremko, I. V., Plekan, M. V., Kantslir, I. A., & Andrejkiv, T. Y. (2018). Informational and financial instruments for evaluation and management of the company’s value. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsbas&AN=edsbas.89515258