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Valuation (English)

Module name (EN):
Name of module in study programme. It should be precise and clear.
Valuation (English)
Degree programme:
Study Programme with validity of corresponding study regulations containing this module.
Industrial Engineering, Bachelor, ASPO 01.10.2013
Module code: WIBASc-525-625-W7
Hours per semester week / Teaching method:
The count of hours per week is a combination of lecture (V for German Vorlesung), exercise (U for Übung), practice (P) oder project (PA). For example a course of the form 2V+2U has 2 hours of lecture and 2 hours of exercise per week.
1V+1U (2 hours per week)
ECTS credits:
European Credit Transfer System. Points for successful completion of a course. Each ECTS point represents a workload of 30 hours.
Semester: 5
Mandatory course: no
Language of instruction:
Written exam

[updated 14.03.2018]
Applicability / Curricular relevance:
All study programs (with year of the version of study regulations) containing the course.

WIBASc-525-625-W7 Industrial Engineering, Bachelor, ASPO 01.10.2013 , semester 5, optional course
WIB21-WPM-W-400 (P450-0096) Industrial Engineering, Bachelor, ASPO 01.10.2021 , semester 5, optional course

Suitable for exchange students (learning agreement)
Workload of student for successfully completing the course. Each ECTS credit represents 30 working hours. These are the combined effort of face-to-face time, post-processing the subject of the lecture, exercises and preparation for the exam.

The total workload is distributed on the semester (01.04.-30.09. during the summer term, 01.10.-31.03. during the winter term).
30 class hours (= 22.5 clock hours) over a 15-week period.
The total student study time is 90 hours (equivalent to 3 ECTS credits).
There are therefore 67.5 hours available for class preparation and follow-up work and exam preparation.
Recommended prerequisites (modules):
Recommended as prerequisite for:
Module coordinator:
Prof. Dr. Andy Junker
Prof. Dr. Andy Junker

[updated 31.01.2020]
Learning outcomes:
After successfully completing this module, students will have learned about and understand the different reasons for a business valuation. They will be familiar with the relevant valuation methods and the derivation of a risk-adjusted discount rate (portfolio selection, CAPM, debt policy, Modigliani-Miller)
They will understand the importance of an integrated corporate planning (P&L, cash flow and balance sheet) as a prerequisite for business valuation.
Students will be able to analyze, estimate and apply the typical paramaters of a valuation (Beta, risk premium, cash flow).
Students will be familiar with the highlights of German valuation standards (IDW S1, RS 10).

[updated 13.09.2018]
Module content:
A.        Valuation as special case of capital budgeting
B.        Reasons for valuation
C.        Valuation methods
1.        Asset value
2.        Multiples
3.        Net present value
4.        DCF (Discounted Cashflow)
D.        Procedure
1.        Planning
i.        Analysis of the past
ii.        Validation of planning
2.        Non-operation assets
3.        Discount rate
iii.        Portfolio Selection / CAPM
iv.        Beta / Modigliani-Miller / Inflation
4.        Taxes
5.        Distinctions
E.        Impairment test (IFRS)
F.        Summary

[updated 13.09.2018]
Teaching methods/Media:
PowerPoint handout, case studies, Excel model

[updated 14.03.2018]
Recommended or required reading:
_        Brealey, R. / Myers, S. / Allen, F.: Principles of Corporate Finance, 10th edition, 2010
_        Copeland, Tom u.a.: Unternehmenswert; 3. Auflage, Campus Verlag, Frankfurt 2002
_        Damodaran, Aswath: Damodaran on Valuation; 2nd edition, John Wiley and Sons, New Jersey 2006
_        Drukarczyk, Jochen/Schüler, Andreas: Unternehmensbewertung; 6. Aufl., Vahlen, München 2009
_        Institut der Wirtschaftsprüfer: Grundsätze zur Durchführung von Unternehmensbewertungen (IDW Standard S1) i.d.F. vom 2.4.08.

[updated 14.03.2018]
[Thu Jun 13 10:13:08 CEST 2024, CKEY=wwxva, BKEY=wi2, CID=WIBASc-525-625-W7, LANGUAGE=en, DATE=13.06.2024]