Business Valuation Methods 2600-DSFRdz/w3rogMWP
1. Definitions of value and factors contributing to its creation, value drivers.
2. Normative acts, universal principles, and functions of valuation.
3. Sources of information for valuation purposes (accounting, market, etc.).
4. Classification of valuation methods (introduction).
5. Asset-based valuation methods - types of methods, advantages and disadvantages, scope of application. Net asset value method (book value method), adjusted net asset method, replacement cost method, liquidation value method.
6. Discounted Cash Flow (DCF) method. Estimation of cash flows achievable for different stakeholder groups. Estimation of the cost of capital. Estimating discounted cash flows and residual value (RV).
7. Market comparison methods (application of multiplier methods). Valuation of equity (E), valuation of a company (EV).
8. Mixed methods of company valuation. Rationale for application.
9. Evaluation of the usefulness of various valuation methods. Critical analysis.
Type of course
Mode
Learning outcomes
Upon completion of the course, the student will have achieved the following:
In terms of knowledge:
• Possesses and understands advanced-level terminology related to financial management in enterprises within the field of economics and finance, as well as in complementary disciplines (management and quality sciences, legal sciences); (S1_W01)
• Knows and understands advanced-level principles, procedures, and practices of accounting in economic organizations (S1_W02)
• Understands in an advanced manner technological, social, political, legal, economic, and ecological processes and phenomena, and their impact on accounting in economic organizations. (S1_W05)
In terms of skills:
• Capable of applying the theory from the discipline of economics and finance, as well as complementary disciplines (management and quality sciences, legal sciences), to identify, diagnose, and solve problems related to accounting in economic organizations, making appropriate choices of sources and adapting existing methods. (S_U01)
• Can correctly interpret technological, social, political, legal, economic, and ecological processes and phenomena and their impact on accounting in economic organizations, using proper source selection. (S1_U02)
• Able to independently and collaboratively prepare analyses, diagnoses, and reports concerning accounting in economic organizations and effectively present them, including in English, using information and communication tools (S1_U03)
• Has the ability to plan and organize personal and team work. (S1_U04)
• Possesses the capacity for self-learning and enhancing acquired qualifications (S1_U05)
In terms of attitudes:
• Ready to evaluate and critically approach situations and phenomena related to accounting in economic organizations (S1_K01)
• Prepared to adhere to professional ethical standards in accounting within economic organizations (S1_K02).
Assessment criteria
Written final exam (with required attachment of calculations for numerical answers) – in a stationary form - 100%, i.e., 100 points.
Bibliography
Basic literature:
• Panfil M., Szablewski A. (eds.) Wycena przedsiębiorstwa . Od teorii do praktyki., Wydawnictwo Poltext, Warszawa 2011.
Supplementary literature:
• Szablewski A., Tuzimek R. (eds.) Wycena i zarządzanie wartością firmy. Poltext, Warszawa 2008
• Szczepankowski P., Wycena i zarządzanie wartością przedsiębiorstwa, Wydawnictwo Naukowe PWN, Warszawa 2007.
• Damodaran A. Damodaran on Valuation: Security Analysis for Investment and Corporate Finance, John Wiley & Sons, Hoboken 2016.
• Selected articles from „Journal of Applied Corporate Finance”, “McKinsey on Finance”.
Additional information
Additional information (registration calendar, class conductors, localization and schedules of classes), might be available in the USOSweb system: