BUSINESS VALUATION AND FINANCIAL PLANNING

SECS-P/07 - 9 CFU - 2° semestre

Docente titolare dell'insegnamento

DAVIDE RIZZOTTI

Obiettivi formativi

This is a class about valuation, not about instruments, markets or investing. It is about valuing small businesses and big ones, simple businesses and complex ones, young firms and those in distress. It is about valuation in all its many forms and I hope that by the end of this class, you can value just about anything that has a value and price just about everything else.

Prerequisiti richiesti

E' indispensabile la conoscenza dell'Inglese, del bilancio d’esercizio, degli indici di bilancio, dei fondamenti di finanza aziendale, delle tecniche di attualizzazione e capitalizzazione e della statistica.

Frequenza lezioni

Indispensabile!

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

- A. Damodaran, “Investment Valuation: Tools and Techniques for Determining the Value of Any Asset, 3rd ed., Wiley (University edition);
- Materiale distribuito dal Docente durante le lezioni.

Altro materiale didattico

https://sites.google.com/site/rizzottivaluation1415/

Programmazione del corso

	*	Argomenti	Riferimenti testi
1	*	Course presentation. Introduction to Valuation	Text 1: chapter 1
2	*	Valuation: how much detail? Valuation approaches	Text 1: chapter 2
3	*	DCF: valutation choices. DCF: the consistency principles	Text 2
4	*	Dividend, FCFE and FCFF models	Text 1: chapter 13; Text 1: chapter 14
5	*	Inputs for valuation: the risk-free rate	Text 1: chapter 7
6	*	Equity risk premiums. Bottom-up beta: the approach	Text 1: chapter 7
7	*	Cost of debt. Debt ratios	Text 2
8	*	Cost of capital. Earnings and cash flows	Text 1: chapter 8; Text 1: chapter 10
9	*	More on cash flows	Text 2
10	*	Fundamental growth rates	Text 1: chapter 11
11	*	Terminal value: approaches and constraints	Text 1: chapter 12
12	*	Dealing with cross holdings and other assets	Text 1: chapter 16
13		Complexity	Text 2
14	*	Management options	Text 1: chapter 16
15	*	Macro effects on valuation	Text 2
16	*	The Dark Side of Valuation: valuing young, startup companies	Text 1: chapter 23
17	*	The Dark Side of Valuation: valuing mature companies in transition, declining and distressed companies	Text 2
18	*	The Dark Side of Valuation: valuing emerging market companies	Text 2
19	*	The Dark Side of Valuation: valuing financial service companies and cyclical & commodities companies	Text 2
20	*	Pricing vs. Valuation	Text 2
21	*	Relative valuation	Text 1: chapter 17
22	*	Deconstructing multiples. Equity side and asset side multiples.	Text 1: chapter 18; Text 1: chapter 19
23	*	Analyzing multiples	Text 1: chapter 18; Text 1: chapter 19; Text 1: chapter 20
24	*	Finding comparables	Text 2
25	*	Market regressions. Choosing the right multiple	Text 2
26	*	Relative vs. Intrinsic valuation. Private business valuation	Text 1: chapter 24
27	*	Value enhancement vs. Price enhancement. The drivers of value. The expected value of control	Text 2
28	*	Equity valuation Project
29	*	Stock screening Project
30		Course closing

* Conoscenze minime irrinunciabili per il superamento dell'esame.

N.B. La conoscenza degli argomenti contrassegnati con l'asterisco è condizione necessaria ma non sufficiente per il superamento dell'esame. Rispondere in maniera sufficiente o anche più che sufficiente alle domande su tali argomenti non assicura, pertanto, il superamento dell'esame.

Verifica dell'apprendimento

MODALITÀ DI VERIFICA DELL'APPRENDIMENTO

Grades will be assigned on the basis of the results of two projects, an interim exam (written) and a final exam (oral).

PROVE IN ITINERE

The interim exam will be a written exam consisting in resolving problems regarding the intrinsic valuation of a company.

ESEMPI DI DOMANDE E/O ESERCIZI FREQUENTI

Questions and exercise will resemble those reported on the slides used during the course.

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