Base Knowledge
Financial Statement Analysis and Financial Mathematics.
Teaching Methodologies
After a theoretical framework of the subjects, students will have the opportunity to consolidate the knowledge learned by solving a set of pedagogical exercises.
Learning Results
The main objectives of this course are:
1. To provide students with a set of basic legal knowledge that informs this type of financial instrument (shares).
2. To introduce a fundamental set of current rules and procedures regarding the functioning of equity markets.
3. To introduce two of the main methodologies for calculating the intrinsic value of a share.
By the end of this course, students should have acquired the following skills:
1. Recognize the main legal and financial characteristics of the financial instrument under consideration.
2. Understand the role of the different types of oprators in the equity markets.
3. Have learned the main operating rules of the markets where this security is traded.
4. Know how to apply two of the methodologies most frequently used by equity research teams to calculate the fundamental value of a share.
Program
1. INTRODUCTION
1.1 Concept of share
1.2 Classification of shares according to their form of representation and their form of transferability
1.3 Shares with and without par value
1.4 Share issue premium, discounts and share premiums
1.5 Reduction of share capital
1.6 Own shares
1.7 Types of shares and nature of the issuance of shares
2. FUNCTIONING OF THE SPOT MARKET
2.1 Framework
2.2 Structure of the secondary market
2.3 Trading on the spot market
2.4 Personal income taxation
2.5 Shares events (detachment of rights and renomalization)
3. EVALUATION OF SHARES THROUGH DISCOUNTED FREE CASH FLOW METHODS AND MARKET MULTIPLES
3.1 Valuation of shares using discounted free cash flow models
3.2 Limitations, critical imputs and sensitivity analysis
3.3 Valuation of shares using market multiples
3.4 Limitations
Curricular Unit Teachers
Artur Jorge Peixoto Conceição Vilares MorgadoInternship(s)
NAO
Bibliography
Main bibliography:
- Damodaran, A. (2006), Damodaran on Valuation – Security Analysis for Investment and Corporate Finance, 2nd Edition, JohnWiley & Sons.
- Pacheco, L., Lobão, J., Madaleno, M., Soares, V. e F. Tavares (2024), Avaliação de Empresas, 2.ª Edição, Edições Sílabo.
- Euronext Cash Market Trading Manual.
- Código dos Valores Mobiliários (versão atualizada, após as alterações decorrentes da Lei n.º 99-A/2021, de 31 de dezembro, publicada no Diário da República n.º 253/2021, 1º Suplemento, Série I).
Complementary bibliography:
- Neves, J. C. (2002), Avaliação de Empresas e Negócios, Mcgraw-Hill-Portugal.
- Palepu, K.; Healy, P.; Peek, E. (2016), Business Analysis and Valuation: IFRS edition, 4th Edition. CENGAGE Learning.
- Serens, M. (2022), Código das Sociedades Comerciais, Edições Almedina.