| Code |
14056
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| Year |
1
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| Semester |
S2
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| ECTS Credits |
6
|
| Workload |
OT(15H)/TP(30H)
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| Scientific area |
Management
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|
Entry requirements |
Basic accounting knowledge
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|
Mode of delivery |
The classes of this unit are theoretical and practical, and face-to-face.
|
|
Work placements |
n.a
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|
Learning outcomes |
The course Business Valuation aims to develop advanced competencies in company valuation, enabling students to understand, analyse, and apply the main valuation models used in professional practice and academic research. By the end of the course, students should be able to: (i) understand the fundamentals of value creation and its key determinants; (ii) apply valuation methodologies based on discounted cash flows (DCF); (iii) use market multiple models, comparable transactions, and dividend-based valuation models, recognising their advantages, limitations, and necessary adjustments; (iv) analyse the impact of risk, growth, cost of capital, and capital structure on firm value; and (v) critically interpret valuation results by integrating financial theory, empirical evidence, and different institutional contexts.
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Syllabus |
1. Fundamental Principles of Valuation
– Concept of value, risk, and return
– Value creation and key value drivers
2. Valuation Using Multiples and Comparables
– Market multiple valuation
– Comparable transactions valuation
– Dividend-based valuation models
3. Discounted Cash Flow (DCF) Valuation
– Cash flow projections
– Terminal value
– Sensitivity analysis
4. Cost of Capital and Capital Structure
– Cost of equity and cost of debt
– Weighted Average Cost of Capital (WACC)
– Capital structure and valuation implications
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Main Bibliography |
• Myers, R., Myers, S., & Allen, F. (2019). Principles of corporate finance. McGraw-Hill.
• Neves, J. C. (2002). Avaliação de empresas e negócios. McGraw-Hill.
• Damodaran, A. (2022). Applied corporate finance (5th ed.). Wiley.
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Language |
Portuguese. Tutorial support is available in English.
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