Company Valuation

This five day module is available at Mannheim School of Business, Germany

The focus of the module is on alternative techniques to value companies and to apply these techniques to different real-world business situations. It covers standard techniques like the discounted cash flow (DCF) method and the residual income (respectively, EVA) model but also comparable valuation using multiples, which is commonly used in practical applications. This is a hands-on course and participants will learn how to implement these valuation methods using spreadsheet analysis to real-world cases. On the way participants will also analyse key concepts, like the cost of capital, the impact of taxes, and capital structure. Finally the module focuses on important application areas such as acquisitions and IPOs and discusses how company values are reflected in stock prices using event-study analysis.

Participants in this module will acquire the following skills:

Perform a company valuation from first principles using a range of techniques (DCF,residual income/EVA, ratio analysis)
Determine the cost of capital for listed and unlisted companies as well as for individual projects and divisions
Establish a connection between a company's strategy and its projected cash flows, analyse the connection between strategy and shareholder value.
Perform an event study and interpret the impact of corporate events on stock prices.
Understand and apply valuation techniques to initial public offerings, cross-border investments and acquisitions, and leasing contracts