NA_BsV Business Valuation

University of Finance and Administration
Summer 2023
Extent and Intensity
1/1/0. 3 credit(s). Recommended Type of Completion: z (credit). Other types of completion: zk (examination).
Teacher(s)
Ing. Roman Mentlík, Ph.D. (seminar tutor)
Guaranteed by
Ing. Roman Mentlík, Ph.D.
Department of Finance – Departments – University of Finance and Administration
Contact Person: Bc. Kamila Procházková
Timetable of Seminar Groups
NA_BsV/cECPH: each odd Monday 8:45–9:29 S23, each odd Monday 9:30–10:15 S23, each odd Monday 10:30–11:14 S23, each odd Monday 11:15–12:00 S23, except Mon 13. 3. ; and Mon 27. 3. 12:15–13:45 S23, Mon 24. 4. 12:15–13:45 S23, R. Mentlík
Prerequisites
-
Course Enrolment Limitations
The course is offered to students of any study field.
Course objectives
The aim of the subject is to understand the importance of the valuation of a company, its purpose - the valuation process – is to distinguish the concepts of price and value, to know the basic classification of methods and categories and the basic methods of valuation of a company.
Learning outcomes
It will emphasize the importance of strategic analysis of the valued enterprise, differentiate methods of assessment regarding perspective and financial health of the company; and explore the processes of elaboration of the financial plan of the valued enterprise. Attention will be paid to quantifying and specifying the risk, and therefore finding a risk-free rate of return. After completion, students should be able to produce a summary of a selected business.
Syllabus
  • 1. Enterprise. Company valuation. Principles of processing an expert opinion. Issue of purpose of the valuation 2. Overview of the Valuation Methods. The "going concern" principle 3.The economic nature of DCF (DCF entity and DCF Equity) valuation. Issues of free cash flow construction. Construction problems of discount factors. 4. Statistical aspects of DCF valuation. The issue of the design of variant payment flows. Differences of the valuation of shares and bonds by the DCF method. 5. Strategic analysis of the valued company. Evaluation of the financial health of the company 6. Estimation of the future market potential of an enterprise. Creating a financial plan and deducting deductible free cash flow 7.SWOT and PEST analysis and their use in the valuation. 8. The term risk. Typology of risks and their impacts on the value of the enterprise. Methods of designing risk premiums. Weighted capital costs 9.Time and risk design of required yields 10. Design of Free Cash Flows, EVA. Capitalized net income method 11. Property valuation methods. Market valuation methods using information from public markets 12. Summary methods of the valuation and synergy effect
Literature
    required literature
  • MERCER, Christopher, Z. and Travis W. HARMS. Business Valuation: An Integrated Theory. Wiley. 2020. 512 p. ISBN 978-1119583097.
  • CARUSO, Gregory, R. The Art of Business Valuation: Accurately Valuing a Small Business. Wiley. 2020. 432 p. ISBN 978-1119605997.
    recommended literature
  • 2¨STEWART, G Bennett. Best-Practice EVA : The Definitive Guide to Measuring and Maximizing Shareholder Value. Hoboken, New Jersey : John Wiley & Sons, Inc., 2013. (Wiley Finance Series). eBook. ISBN 9781118639382.
  • 1) HITCHNER, James R. Financial Valuation Workbook: Step by Step Exercises and Tests to Help You Master Financial Valuation. Fourth ed. New Jersey : John Wiley & Sons, Inc.,2017. eBook. ISBN 978111931252.
Teaching methods
lessons, case studies.
Assessment methods
Written test, seminar work, presentations
Language of instruction
English
Further comments (probably available only in Czech)
The course can also be completed outside the examination period.
Information on the extent and intensity of the course: 12 hodin KS/semestr.
The course is also listed under the following terms Summer 2020, Summer 2021, Summer 2022.
  • Enrolment Statistics (recent)
  • Permalink: https://is.vsfs.cz/course/vsfs/summer2023/NA_BsV