Module code: BUS331
Module organiser: Dr Ni Peng
This module identifies and explores challenges and issues facing global managers and corporate consultants as they operate in a global world requiring them to know what an asset is worth and what determines its value where ever the asset is around the world. The postulate for sound investing is that a manager does not pay more for an asset than it is worth. In a global world and under competition managers assessments of value must be backed up by reality which implies that the price we pay should relate to realistic estimates of cash flows and uncertainties faced by global managers.
Accordingly the module is arranged around:
- Estimating Discount Rates, Cash Flows and Growth Rates for Valuation purposes
- Differences between firm and equity valuation
- Real options corporate managers can come across and their valuation
- Valuing companies in distress
- Relative valuation
- Biases in Valuation their manifestation and reduction
- Imprecision and uncertainty in valuation.
- Payoffs to more versus less detail in valuation and cost of complexity
- Principle of parsimony and different approaches to valuation.
- Examination 60%
- Coursework 40%
- Damodaran on Valuation: security analysis for investment and corporate finance (second edition), Aswath Damodaran, Wiley Finance.
- Investment Valuation: tools and techniques for determining the value of any asset (university edition), Aswath Damodaran, Wiley Finance.