SECS-P/07 - 9 CFU - 1° semestre

Docente titolare dell'insegnamento


Obiettivi formativi


The aim of the course is to provide students with both the conceptual framework of business valuation issues and the practical skills required in the job-market about investment decisions and consulting services. During the course the commonly used approaches are critically analyzed, particularly with respect to Discounted Cash Flow (DCF) and Relative valuations. At the end of the course students will acquire theoretical instruments to critically understand, interpret and apply modern techniques of business valuation and the relationship with financial markets’ behavior.

Applying Kowledge

The course has a very strong operative focus and students will learn how to prepare rigorous corporate valuation projects, compliant to international standards.

During the course, student will learn-by-doing:

At the end of the course, students will be able to apply both Discounted Cash Flow and Relative analyses, identifying the most appropriate approaches according to the final aim of the valuation.

Modalità di svolgimento dell'insegnamento

In Class Lessons.

In cases of on-line classes, all necessary changes will be introduced in order to comply with the planned program.

Prerequisiti richiesti

English. Financial Statement. Accounting Rules. Fundamentals of Corporate Finance. Present Value. Statistical Distribution.

Frequenza lezioni


Contenuti del corso

The valuation philosophy; Subjective Biases; Fundamentals: rates, returns, growth; Rates; Valuation approaches: intrinsic, relative and contingent; Business valuation in professional applications; Leasing; Project financing. Case studies.

Testi di riferimento

Text1: A. Damodaran, “Investment Valuation: Tools and Techniques for Determining the Value of Any Asset, 3rd ed., Wiley (University edition);

Text 2: Lecture Notes

Altro materiale didattico

Programmazione del corso

 ArgomentiRiferimenti testi
1Introduction to ValuationText 1. Ch. 1 
2Approaches to Valuation: Intrinsic and Relative ValuationText 1. Ch. 2 
3Understanding Financial StatementsText 1. Ch. 3 
4Basics of Intrinsic Valuation. Discounted Cash Flows Valuation.Text 2 
5Dividends and Free Cash Flows.Text 2 
6Estimating Discount Rates. Cost of Equity. CAPM.Text 2 
7Risk-Free Rates and Default Spread.Text 1. Ch. 7 
8Historical Equity Risk PremiumText 1. Ch. 7 
9Implied Equity Risk PremiumText 1. Ch. 7 
10Country Risk PremiumText 1. Ch. 7 
11Historical Market BetaText 1. Ch. 8 
12Bottom-Up BetaText 1. Ch. 8 
13Cost of Debt.Text 1. Ch. 8 
14Market Value of Equity. Market Value of Debt. WACC.Text 1. Ch. 8 
15Estimating Cash Flows. Adjusting Earnings.Text 1. Ch. 9 
16Estimating Cash Flows. Reinvestment Needs.Text 1. Ch. 10 
17Estimating Growth. Historical Growth Rates.Text 1. Ch. 11 
18Estimating Growth. Fundamental Growth Rates.Text 1. Ch. 11 
19Closure in Valuation. Estimating High-Growth Period and Growth Pattern.Text 1. Ch. 12 
20Closure in Valuation. Estimating Terminal Value. Stable Growth Rate.Text 1. Ch. 12 
21Estimating Equity Value per Share. The Value of Cash, Cross Holdings, Other Assets. Text 1. Ch. 16 
22Valuing Employee Options.Text 1. Ch. 16 
23Dividends Discount Model.Text 1. Ch. 13 
24Free Cash Flows to Equity Discount Model. Text 1. Ch. 14 
25Free Cash Flows to the Firm Model.Text 1. Ch. 15 
26Basics of Relative Valuation. Multiples.Text 1. Ch. 17 
27Equity Side and Asset Side Multiples.Text 1. Ch. 18,19 
28Analyzing MultiplesText 1. Ch. 18,19 
29Finding Comparables. Market regressions.Text 2 
30Valuing Private FirmsText 1. Ch. 24 

Verifica dell'apprendimento


Grades will be assigned on the basis of the results of one project, a written and an oral exam.

If necessary, the verification of learning will be carried out telematically.


Valuation approaches; terminal value; private company valuation; total beta; DCF valuation; relative valuation; price vs value.

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