Business Valuation Methods 2600-DSFRdz/w3fpMWP

After completing the course:

In terms of knowledge, the student:

• Understand the methodology of business valuation, including the principles of cash flow forecasting, cost of capital estimation, and terminal value identification. (S1_W01)

• Demonstrate knowledge of income-based methods (DCF – FCFF, FCFE, DDM), asset-based methods (NAV, replacement cost, liquidation value), and market-based methods (multiples such as EV/EBITDA, P/E, P/BV). (S1_W02)

• Possess an advanced understanding of economic theories and models (e.g., time value of money, risk and return) related to business valuation. (S1_W01)

• Be familiar with the legal and regulatory frameworks governing valuations (e.g., IFRS, International Valuation Standards, National Valuation Standards). (S1_W05)

• Understand the impact of macroeconomic factors (inflation, interest rates, country risk) and industry-specific factors (industry life cycle, sectoral regulations, technological innovation) on valuation processes. (S1_W05)

In terms of skills, the student:

• is able to prepare and apply financial projections necessary for business valuation, including FCFF, FCFE, and DDM-based approaches. (S1_U01)
• is able to develop projected income statements, balance sheets, and cash flow statements for valuation purposes. (S1_U01)
• is able to calculate the cost of equity (CAPM, Fama–French three-factor model) and the weighted average cost of capital (WACC). (S1_U01)
• is able to conduct a DCF valuation, calculate terminal value (Gordon growth model or exit multiple), and estimate enterprise value. (S1_U01)
• is able to apply market-based valuation methods, select appropriate peer groups, and interpret resulting multiples. (S1_U01)
• is able to build an Excel-based valuation model using financial formulas, scenario analysis, and sensitivity tables. (S1_U01)

• can accurately interpret technological, social, political, legal, economic, and ecological processes and their impact on business valuation (S1_U02)

• is able to prepare a comprehensive valuation report including assumptions, results, and recommendations for management or investors. (S1_U03)
• can plan and organize both individual and team work in the process of preparing a valuation. (S1_U04)
• Demonstrate the ability for self-directed learning and continuous professional development. (S1_U05)

In terms of attitudes the student::

• Is prepared to critically analyze and question the results of a valuation (e.g., discrepancies between methods, overly optimistic forecasts). (S1_K01)

• Is prepared to adhere to professional ethical standards in the field of business valuation. (S1_K02)

• Understands the social responsibility of valuation (e.g., in restructuring, takeovers, or legal proceedings). (S1_K02)

The learning assessment will be based on:
1. A written final exam (multiple-choice questions and 2 problem-solving tasks).
2. A team project (3-4 students).
The weight of each assessment component will be as follows:
• Final exam – 80%
• Group project – 20%

1. Koller, T., Goedhart, M., Wessels, D. and McKinsey & Company Inc. (2025) Valuation: Measuring and Managing the Value of Companies. Hoboken, NJ: Wiley.
2. Aswath Damodaran (2016), Damodaran on Valuation: Security Analysis for Investment and Corporate Finance, John Wiley & Sons,
3. Panfil Marek, Szablewski Andrzej red. (2011), Wycena przedsiębiorstwa . Od teorii do praktyki., Wydawnictwo Poltext,
4. Szablewski Andrzej., Tuzimek Rafał. (2008), Wycena i zarządzanie wartością firmy. Poltext, Warszawa
5. Szczepankowski Piotr (2007), Wycena i zarządzanie wartością przedsiębiorstwa, Wydawnictwo Naukowe PWN, Warszawa
6. Międzynarodowe standardy Wyceny
7. Krajowe standardy Wyceny Specjalistycznej