Learning Results
• To introduce students to the various approaches of business valuation and methods for determination of the
relevant inputs for evaluation.
• Provide the students with knowledge on key business valuation models.
• To introduce students to the fundamental concepts on corporate restructuring, corporate governance and
corporate control.
Program
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. Dividend-discount 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.
Internship(s)
NAO
Bibliography
• Copeland, T. E., Weston, J. F., and Shastri, K. (2004). Financial Theory and Corporate Policy. 4th edition, Addison-
Wesley, Reading, MA.
• Damodaran, A. (2006), Damodaran on Valuation: Security Analysis for Investment and Corporate Finance, 2nd
Edition, John Wiley & Sons, New York, NY.
• Neves, J. C. (2002), Avaliação de Empresas e Negócios, McGraw-Hill, Lisboa.
• Rappaport, A. (1997), Creating Shareholder Value: The New Standard for Business Performance, 2nd edition, Free
Press, New York, NY.