Professor
Crocker H. Liu
(212) 998-0353 Office
(212) 995-4233 FAX
Email: cliu@stern.nyu.edu
Valuation Analysis
EMBA Management
Texts:
Aswath Damodaran (AD), 1994,
Damodaran
on Valuation: Security Analysis for Investment and Corporate Finance,
John Wiley and Sons.
Tom Copeland, etal (TC),
1996 (with Disks), Valuation: Measuring and Managing the Value of Companies,
John Wiley and Sons.
Martin S. Fridson (MF), 1996,
Financial
Statement Analysis: A Practitioner's Guide, John Wiley and Sons.
Class Packets: 2
Lecture Handout Packets
Grading Policy: Each group representative
is responsible for using the various valuation techniques and applying
it to his or her ICS (industry corporate strategy) case project.
TOPIC SCHEDULE
|
Session(s)
|
Topic
|
Readings
|
|
1-2
|
Financial Planning
Models |
-
Understanding Financial Statements Ch. 5,
AD
-
Financial Statement Analysis (whole book),
MF
|
|
2-3
|
Relative Valuation Models |
-
Price-Earnings Ratio Ch. 10,
AD
-
Price-Book Value Ratios Ch.
11, AD
-
Price-Sales Ratios Ch. 12, AD
|
|
3-4
|
Absolute Valuation Models |
-
Introduction to Valuation Ch.
1, AD
-
Approaches to Valuation Ch.
2, AD
-
Overview and Conclusions Ch.
17, AD
-
Estimation of Discount Rates
Ch. 3, AD
-
Estimation of Cashflows Ch.
4, AD
-
Estimation of Growth Rates Ch.
5, AD
-
Dividend-Discount Models Ch.
6, AD
-
Free Cashflow to Equity Discount
Models Ch. 7, AD
-
Valuing a Firm-The Free Cashflow
to Firm Ch. 8, AD
|
|
4-5
|
Economic Value Added |
-
Frameworks for Valuation Ch.
5, TC
-
Analyzing Historical Performance
Ch. 6, TC
-
Estimating Continuing Value
Ch. 9, TC
|
|
5-6
|
Valuation Using Options |
-
Option Pricing Theory Ch. 17,
AD
-
Special Cases in DCF Valuation
Ch. 13, AD
-
Applications of Option Pricing
to Equity Valuation Ch. 18, AD
-
Using Option Pricing Methods
to Value Flexibility Ch. 15, TC
|
|
|
|