Corporate Valuation Models

This one semester course consists of 45 hours of contact with the teacher (3 hours per week) and 62 hours of
autonomous work (total: 107 hours). The course is credited with 4 ECTS.
The course is structured in three parts. First, the theoretical foundations of each topic are presented. Second,
the students solve case studies to apply the theoretical background. Third, the students need to work on a
group assignment with oral presentation about one of the topics discussed in classes.
Final grades under a continuous assessment evaluation methodology will be based on three components:
1. Participation and attendance: 5%;
2. Group assignment: 35%;
3. Written test: 60%.
Students can also apply for a final exam (100% of the final grade) concerning all topics of syllabus.

Know how to value a company using different valuation methods

1. Introduction
1.1. Basic concepts for valuation.
1.2. Approaches to valuation.
1.3. Capital structure of firms.
2. Estimation of the relevant inputs for valuation
2.1. Estimation of cost of capital.
2.2. Estimation of cash flows.
2.3. Estimation of growth rates and terminal value.
3. Models of valuation
3.1. Adjusted patrimonial value model.
3.2. Dividenddiscount
models.
3.3. Free cash flow to equity models.
3.4. Free cash flow to the firm models.
3.5. Economic value added model.
3.6. Relative valuation models.
3.7. Special cases in valuation.
4. Valuation of investments in real assets
4.1. Traditional models for valuing investments in real assets.
4.2. Limitations of the traditional approach.
4.3. The real options methodology for valuing investments.
4.4. Real options valuation models.
4.5. Applications of option pricing theory for valuing firms.

NAO