Course Code :


Title :
Business Valuation Theory and Application

Type/Status :


aaaaaaaaaaaa Aims :
This course module is designed to provide an insight on deriving the value of a business firm
Learning Outcome : aaaaaaaaaaaaaaaa
By the end of this course unit students should be able to:
  • identify different approaches in finance to ascertain the value of a business  and their limitations develop valuation models for real world business firms improve skills on writing investment reports

Course Content : Overview of valuation process. Discounted cash flow based valuation; Free cash flows to the firm, Free cash flows to equity, Adjusted Present Value. Income based valuation; Residual Income approach. Market based valuation; Price multiples.

Asset based valuation. Special concerns in valuing a financial firm. Introduction to valuing stock options. Introduction to investment report writing.

Method of Teaching & Learning:

Lectures, Presentations

Scheme of Evaluation:

Assignments, Presentations and End semester examination.

The weights given to each component of the evaluation method is announced at the commencement of the module.

Recommended Readings:

Hitchner, J. R. (2011). Financial Valuation (3 ed.). John Wiley & Sons Inc.

Holton, L., & Bates, J. (2009). BUsiness Valuation for Dummies (1 ed.).

Pinto, J. E., Henry, E., Robbinson, T. R., & Stowe, J. D. (2010). Equity Asset Valuation (2 ed.). Wiley.

Pratt, S. (2003). Business Valuation Body of Knowledge: Exam Review & Professional Reference (2 ed.). John Wiley & Sons Inc.

Pratt, S., & Niculita, A. V. (2007). Valuing a Business (5 ed.). McGraw-Hill.