Valuation of Companies and Cash Flow Generating Assets (N1591)

15 credits, Level 6

Autumn teaching

This module offers a comprehensive exploration of company valuation techniques, equipping you with practical skills to analyse and assess businesses in today's dynamic market. It focuses on three primary approaches:

• intrinsic value (DCF, DEP, APV)
• relative value (multiples)
• contingent value (decision trees, real options).

A primary emphasis is placed on Discounted Cash Flow (DCF) analysis, which involves estimating a company’s future cash flows and discounting them to their present value.

The module also highlights the importance of selecting accurate data and understanding model limitations to enhance valuation accuracy.

You will delve into analysing a company’s operating environment, value drivers and the challenges associated with valuation in practice. Through case studies and practical exercises, you will develop a step-by-step Excel-based valuation model.

The module's learning objectives are directly applicable to various corporate roles, including private equity, consulting, corporate finance, equity analysis, mergers and acquisitions, and IPOs. By completing this module, you will gain the skills and knowledge necessary to contribute effectively to these fields.

 

Contact hours and workload

This module is approximately 150 hours of work. This breaks down into about 31 hours of contact time and about 119 hours of independent study. The University may make minor variations to the contact hours for operational reasons, including timetabling requirements.

We regularly review our modules to incorporate student feedback, staff expertise, as well as the latest research and teaching methodology. We’re planning to run these modules in the academic year 2024/25. However, there may be changes to these modules in response to feedback, staff availability, student demand or updates to our curriculum.

We’ll make sure to let you know of any material changes to modules at the earliest opportunity.