FIE437 Valuation (E)

• Topics

  The course covers advanced valuation techniques used for thorough modeling of a firm's value. The aim is to provide students with advanced knowledge and in-depth understanding of the concepts behind fundamental value, and the underlying assumptions in order to sensitively apply their existing theoretical understanding of valuation. It also addresses how AI tools can support valuation analysis and model development. The course will be relevant for students seeking a career in equity research, investment banking, management consulting, and larger corporations in Norway and internationally.

  The main course topics are:

  • Fundamentals of Value Creation (DCF)
  • Relative Valuation - the Link to Fundamental Value
  • Reorganizing Financial Statements
  • Analyzing Historical Performance
  • Forecasting Future Performance
  • Estimating Continuing Value
  • Calculating and Interpreting Results
  • Sensitivity and Scenario Analysis
  • Cost of Capital
  • Cost of Equity
  • Cost of Debt
  • Debt & Taxes
  • Minorities & Debt Equivalents
  • Getting to Price Per Share

• Learning outcome

  Upon course completion, the student can:

  Knowledge

  • Demonstrate advanced knowledge of the fundamental drivers of value.
  • Explain how analysis and forecasting are integrated in corporate valuation.
  • Demonstrate advanced knowledge of established valuation techniques.

  Skills

  • Apply the main valuation techniques to real companies in order to form a well‑reasoned assessment of a company’s fair value.
  • Implement valuation knowledge in practical settings.
  • Present and discuss complex corporate valuation issues in a professional and demanding context.
  • Analyze complex financial information.
  • Identify the information most relevant for valuation purposes.

  General Competence

  • Prepare and communicate clear, written valuation analyses and presentations of the fair value of a corporation or project to investors, top management, and boards of directors.
  • Demonstrate awareness of the level of effort and precision required to perform successfully in demanding roles such as equity research analyst, management consultant, or investment banker.

• Teaching

  The course combines lectures, case-based teaching, and class discussions. Lectures provide the theoretical foundations for advanced corporate valuation, while cases are used to apply the analytical frameworks to real companies. Guest lectures may be included to provide practical perspectives on valuation and related analytical work.

  Teaching is based on a textbook, lecture notes, and company cases.  As part of the course, students will work in groups on a company case and present their analysis during scheduled teaching hours.

• Recommended prerequisites

  It is recommended that students taking this course have completed a master-level course in Corporate Finance (FIE402) or equivalent courses at other institutions. Previous knowledge and experience on corporate finance and investment (including financial derivatives) may be helpful. The experience of using market data with computer software (e.g., spreadsheets and/or programming languages) is recommended, albeit not required.

• Required prerequisites

  None.

• Credit reduction due to overlap

  FIE437 is a continuation of FIE437A and FIE437B and students will not get credit for more than one of these courses. Additionally, FIE437 overlaps with BUS440X and ACC421X and can not be taken i combination with these courses.

• Compulsory Activity

  Students are required to participate in a group-based case assignment. Each group will present their analysis of a company case during scheduled teaching hours. The mandatory activity is assessed as approved / not approved.

  Previously approved compulsory activity (work requirement) is no longer valid.

• Assessment

  4-hour digital school exam.

• Grading Scale

  A - F.

• Computer tools

  No particular requirements.

• Literature

  Koller / Goedhart / Wessels ("The McKinsey Book"), Valuation, 7th Edition, McKinsey & Co (2020) - recommended but not required.

• Permitted Support Material

  Calculator

  One bilingual dictionary (Category I)

  All in accordance with Supplementary provisions to the Regulations for Full-time Study Programmes at the Norwegian School of Economics Ch.4 Permitted support material https://www.nhh.no/en/for-students/regulations/ and https://www.nhh.no/en/for-students/examinations/examination-support-materials/