Evaluation and shaping of enterprise value 2600-MSFRz2rkdiOKWP
1. Definitions of enterprise value. The essence and evolution of enterprise value management concepts - (SVC - Shareholder Value Creation) and (VBM - Value-Based Management).
2. Economic factors creating enterprise value. Financial factors in the creation and assessment of enterprise value (free cash flows, capital structure and cost, growth rate and its estimation based on historical data and fundamental analysis, sustainable growth rate).
3. Measuring the effectiveness of enterprise value management (accounting approach to measuring value created by the enterprise, value management efficiency measurement based on economic profit criterion, market measurement of value created by the enterprise, cash measurement of enterprise value management efficiency, added value for owners in assessing the effectiveness of value management strategies).
4. Selected value growth strategies (mergers, acquisitions, joint ventures, strategic alliances, share buybacks, leveraged buyouts).
5. Scope and methods of enterprise valuation (universal principles and functions of valuation, sources of information for valuation, classification of valuation methods).
6. Asset-based valuation methods of enterprise value - types of methods, advantages and disadvantages, scope of application.
7. Income-based valuation methods of enterprise - (discounted earnings method, discounted dividend method, discounted cash flow (DCF) method, adjusted present value (APV) method).
8. Market comparison methods (application of multiplier methods).
9. Real options theory in valuation and value management of the enterprise.
Type of course
Mode
Learning outcomes
After completing the course, the student:
In the scope of knowledge:
• "Knows and understands in depth the terminology related to the capital market and investment advisory within the field of management science and quality, as well as in supplementary disciplines (economics and finance, legal studies). (S5_W01)
• "Knows and understands in depth the principles, procedures, and practices concerning the capital market and investment advisory. (S5_W02)
• "Knows and understands in depth the theories and economic models related to the capital market and investment advisory. (S5_W03)
• "Knows and understands the complex technological, social, political, legal, economic, and ecological processes and phenomena, and their impact on the capital market and investment advisory (S5_W05)
In terms of skills: The graduate is capable of:
• Utilizing the theory of management science and quality, as well as complementary sciences (economics and finance, legal studies), to recognize, diagnose, and resolve problems associated with the capital market and investment advisory, employing the proper selection of sources and adapting existing or developing new methods. (S5_U01)
• Correctly interpreting complex technological, social, political, legal, economic, and ecological processes and phenomena, as well as their impact on the capital market and investment advisory, using an appropriate selection of sources. (S5_U02)
• Independently and collaboratively preparing analyses, diagnoses, and reports on complex and unusual problems related to the capital market and investment advisory, and effectively presenting them, including in English, using information and communication tools. (S5_U03)
• Possessing the ability for self-education, enhancing acquired qualifications, and supporting others in this regard. (S5_U05)
In terms of attitudes
• is ready to assess and critically approach complex situations and phenomena related to financial management in organizations, accounting, managing financial institutions, and strategies of financial institutions (S5_K01)
Assessment criteria
• Homework – Excel models - 20%, i.e., 20 points.
• Written final exam (with required attachment of calculations for numerical answers) – in a stationary form - 80%, i.e., 80 points.
Bibliography
Basic literature:
• Panfil M., Szablewski A.(eds.) Wycena przedsiębiorstwa, Od teorii do praktyki, Wydawnictwo Poltext, Warszawa 2011.
Supplementary literature:
• Zarzecki D. Metody wyceny przedsiębiorstwa, FRR, Warszawa 1999.
• Dudycz T. Zarządzanie wartością przedsiębiorstwa, PWE, Warszawa 2006.
• Koller T., Goedhart M., Wessels D. Valuation.. Measuring and Managing the Value of Companies, Wiley 2020.
• Selected articles from “McKinsey on Finance”, “Journal of Applied Corporate Finance”