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ME2030 Finance, Corporate Valuation 6.0 credits

Finansiering, företagsvärdering

This course gives a broad knowledge of different models for valuing enterprises with focus on high technology companies. It also gives a deep knowledge in using the discounted free cash-flow model.

  • Educational level

    Second cycle

  • Academic level (A-D)

    C

  • Subject area

    Industrial Management

  • Grade scale

    A, B, C, D, E, FX, F

Course offerings

Spring 13 for programme students

Spring 14 for programme students

Learning outcomes

After passing the course the participants should be able to:

  • Choose the appropriate valuation model for the valuation to be conducted.
  • Collect and handle the data needed for the valuation.
  • Construct and use a free cash-flow based model for enterprise valuation.
  • On their own do a complete valuation of a high tech enterprise.
  • Present a valuation for the management of a company.
  • Identify and quantify the value creation of an enterprise.
  • Evaluate the most common stock-based compensation schemes.

Course main content

The course builds on lectures, guest lectures and a number of seminars and a project. The purpose of the lectures is to give a good knowledge of theories, how they can be applied and a practical guidance in how to set up a free cash-flow valuation model. The guest lectures will cover how the people in the industry are doing valuations.

The main areas covered during the course are:
- Discounted cash-flow models
- Models that build on multiples
- Stock option plans
- Shareholder value and private equity

Eligibility

Course ME2029 or ME2064 finished and passed.

Basic course in industrial management or similar. Exemption for those students in program CMATD, who have read the course MH1021 in autumn 2009 or 2010.

Prerequisites

ME2029 or ME2064 finished and passed.

Literature

Koller, T., Goedhart, M. & Wessels, D., Valuation, Measuring and Managing the Value of Companies, 4th edition, University edition, John Wiley & Sons, 2005.

Examination

  • SEM1 - Seminars, 3.0 credits, grade scale: P, F
  • TEN1 - Examination, 3.0 credits, grade scale: A, B, C, D, E, FX, F

Requirements for final grade

Written exam, Active participation in seminars, pass on assignments and project.

Offered by

ITM/Industrial Economics and Management

Contact

Tomas Sörensson, tomas.sorensson@indek.kth.se, +46 8 790 87 39

Examiner

Tomas Sörensson <tomassor@kth.se>

Supplementary information

Established Spring 2006 

Replaces 4D1161

Version

Course plan valid from: Autumn 11.
Examination information valid from: Autumn 07.