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Valuation (English)

Module name (EN): Valuation (English)
Degree programme: Industrial Engineering, Bachelor, ASPO 01.10.2013
Module code: WIBASc-525-625-W7
Hours per semester week / Teaching method: 1V+1U (2 hours per week)
ECTS credits: 3
Semester: 5
Mandatory course: no
Language of instruction:
Written exam

[updated 14.03.2018]
Applicability / Curricular relevance:
WIBASc-525-625-W7 Industrial Engineering, Bachelor, ASPO 01.10.2013, semester 5, optional course
30 class hours (= 22.5 clock hours) over a 15-week period.
The total student study time is 90 hours (equivalent to 3 ECTS credits).
There are therefore 67.5 hours available for class preparation and follow-up work and exam preparation.
Recommended prerequisites (modules):
Recommended as prerequisite for:
Module coordinator:
Prof. Dr. Andy Junker
Prof. Dr. Andy Junker

[updated 31.01.2020]
Learning outcomes:
After successfully completing this module, students will have learned about and understand the different reasons for a business valuation. They will be familiar with the relevant valuation methods and the derivation of a risk-adjusted discount rate (portfolio selection, CAPM, debt policy, Modigliani-Miller)
They will understand the importance of an integrated corporate planning (P&L, cash flow and balance sheet) as a prerequisite for business valuation.
Students will be able to analyze, estimate and apply the typical paramaters of a valuation (Beta, risk premium, cash flow).
Students will be familiar with the highlights of German valuation standards (IDW S1, RS 10).

[updated 13.09.2018]
Module content:
A.        Valuation as special case of capital budgeting
B.        Reasons for valuation
C.        Valuation methods
1.        Asset value
2.        Multiples
3.        Net present value
4.        DCF (Discounted Cashflow)
D.        Procedure
1.        Planning
i.        Analysis of the past
ii.        Validation of planning
2.        Non-operation assets
3.        Discount rate
iii.        Portfolio Selection / CAPM
iv.        Beta / Modigliani-Miller / Inflation
4.        Taxes
5.        Distinctions
E.        Impairment test (IFRS)
F.        Summary

[updated 13.09.2018]
Teaching methods/Media:
PowerPoint handout, case studies, Excel model

[updated 14.03.2018]
Recommended or required reading:
_        Brealey, R. / Myers, S. / Allen, F.: Principles of Corporate Finance, 10th edition, 2010
_        Copeland, Tom u.a.: Unternehmenswert; 3. Auflage, Campus Verlag, Frankfurt 2002
_        Damodaran, Aswath: Damodaran on Valuation; 2nd edition, John Wiley and Sons, New Jersey 2006
_        Drukarczyk, Jochen/Schüler, Andreas: Unternehmensbewertung; 6. Aufl., Vahlen, München 2009
_        Institut der Wirtschaftsprüfer: Grundsätze zur Durchführung von Unternehmensbewertungen (IDW Standard S1) i.d.F. vom 2.4.08.

[updated 14.03.2018]
[Tue Dec  7 04:03:31 CET 2021, CKEY=wwxva, BKEY=wi2, CID=WIBASc-525-625-W7, LANGUAGE=en, DATE=07.12.2021]