| School/Faculty/Institute | Faculty of Economics, Administrative and Social Sciences | |||||
| Course Code | FIN 434 | |||||
| Course Title in English | Company Valuation | |||||
| Course Title in Turkish | Şirket Değerlemesi | |||||
| Language of Instruction | EN | |||||
| Type of Course | Flipped Classroom | |||||
| Level of Course | Advanced | |||||
| Semester | Spring | |||||
| Contact Hours per Week |
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| Estimated Student Workload | 120 hours per semester | |||||
| Number of Credits | 5 ECTS | |||||
| Grading Mode | Standard Letter Grade | |||||
| Pre-requisites |
FIN 202 - Finance | FIN 204 - Corporate Finance |
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| Expected Prior Knowledge | None | |||||
| Co-requisites | None | |||||
| Registration Restrictions | Only Undergraduate Students | |||||
| Overall Educational Objective | To learn and understand the theory and contemporary corporate approaches to company valuation. | |||||
| Course Description | This course aims to provide an understanding of company valuation. Students are expected to gain a broad understanding of business, valuation, company valuation and the interconnectedness between business and company valuation. Students will learn how to identify valuation parameters and how to attempt to manage those critical valuation factors so that they can achieve successful valuation results. We explore the meaning and dimensions of valuation, valuation parameters, risk factors for achieving successful valuation results, international valuation standards and their relation with financial structure and economics of the business, learn key success factors for effective and successful valuation results. | |||||
| Course Description in Turkish | Derste her dönemin popüler finans konularından “şirket değerlemesi” kavramı üzerinde durulacaktır. Öğrenciler işletmeleri, değerleme kavramını, şirket değerleme süreçleri ile şirketin operasyonları ve faaliyetleri ile şirketin değeri arasındaki ilişkiyi, bu alandaki çağdaş uygulamaları ele alacaklardır. Ders sonucunda öğrenciler, bir işletmenin sürdürülebilir (kalıcı) olabilmesi için, özellikle şirket değeri konusunda yapması gerekenlerin ne olduğu konusunda detaylı bilgi ve yetkinlik sahibi olacaklardır. Öğrenciler, değerlemenin anlamı ve boyutları, şirket değerleme yöntemleri, şirket değerlemesindeki kritik karar faktörleri vb. kavramların tanımı, açılımları, işletmelerin finansal yapısı ve ekonomik yaklaşımları ile ilişkisi ve etkisi ile nasıl uygulanacağı konularında bilgi ve yetkinlik sahibi olacaklardır. |
Course Learning Outcomes and CompetencesUpon successful completion of the course, the learner is expected to be able to:1) identify the principles of business operations in the context of company valuation 2) recognize, identify and define critical decision factors in company valuation; 3) explain the basic methodologies and techniques in company valuation; 4) comprehend the link between company valuation, business operations, financial tables and cash flows 5) interpret information and numerical data to set up an effective company valuation model 6) identify critical thinking skills in preparing effective company valuation models. |
| Program Learning Outcomes/Course Learning Outcomes | 1 | 2 | 3 | 4 | 5 | 6 |
|---|---|---|---|---|---|---|
| 1) Thorough knowledge of the major concepts, theoretical perspectives, empirical findings, and historical trends in psychology. | ||||||
| 2) Understanding of and ability to apply essential research methods in psychology, including research design, data analysis, and data interpretation. | ||||||
| 3) Competence to use critical and creative thinking, skeptical inquiry and a scientific approach to solving problems related to behavior and mental processes. | ||||||
| 4) Understanding and ability to apply psychological principles, skills and values in personal, social, and organizational contexts. | ||||||
| 5) Ability to weigh evidence, to tolerate ambiguity, and to reflect other values that underpin psychology as a discipline. | ||||||
| 6) Internalization and dissemination of professional ethical standards. | ||||||
| 7) Demonstration of competence in information technologies, and the ability to use computer and other technologies for purposes related to the pursuit of knowledge in psychology and the broader social sciences. | ||||||
| 8) Skills to communicate the knowledge of psychological science effectively, in a variety of formats, in both Turkish and in English (in English, at least CEFR B2 level). | ||||||
| 9) Recognition, understanding, and respect for the complexity of sociocultural and international diversity. | ||||||
| 10) Recognition for the need for, and the skills to pursue, lifelong learning, inquiry, and self-improvement. | ||||||
| 11) Ability to formulate critical hypotheses based on psychological theory and literature, and design studies to test those hypotheses. | ||||||
| 12) Ability to acquire knowledge independently, and to plan one’s own learning. | ||||||
| 13) Demonstration of advanced competence in the clarity and composition of written work and presentations. |
| N None | S Supportive | H Highly Related |
| Program Outcomes and Competences | Level | Assessed by | |
| 1) | Thorough knowledge of the major concepts, theoretical perspectives, empirical findings, and historical trends in psychology. | N | |
| 2) | Understanding of and ability to apply essential research methods in psychology, including research design, data analysis, and data interpretation. | N | |
| 3) | Competence to use critical and creative thinking, skeptical inquiry and a scientific approach to solving problems related to behavior and mental processes. | H | Exam,HW,Participation |
| 4) | Understanding and ability to apply psychological principles, skills and values in personal, social, and organizational contexts. | N | |
| 5) | Ability to weigh evidence, to tolerate ambiguity, and to reflect other values that underpin psychology as a discipline. | N | |
| 6) | Internalization and dissemination of professional ethical standards. | N | |
| 7) | Demonstration of competence in information technologies, and the ability to use computer and other technologies for purposes related to the pursuit of knowledge in psychology and the broader social sciences. | N | |
| 8) | Skills to communicate the knowledge of psychological science effectively, in a variety of formats, in both Turkish and in English (in English, at least CEFR B2 level). | N | |
| 9) | Recognition, understanding, and respect for the complexity of sociocultural and international diversity. | S | Participation |
| 10) | Recognition for the need for, and the skills to pursue, lifelong learning, inquiry, and self-improvement. | S | HW,Participation |
| 11) | Ability to formulate critical hypotheses based on psychological theory and literature, and design studies to test those hypotheses. | N | |
| 12) | Ability to acquire knowledge independently, and to plan one’s own learning. | S | Exam,HW |
| 13) | Demonstration of advanced competence in the clarity and composition of written work and presentations. | H | Exam,HW |
| Prepared by and Date | MURAT DOĞU , January 2019 |
| Course Coordinator | MERVE ÖZ |
| Semester | Spring |
| Name of Instructor | Öğr. Gör. MURAT DOĞU |
| Week | Subject |
| 1) | Introduction to valuation |
| 2) | Approaches to valuation |
| 3) | Understanding financial tables |
| 4) | The basics of risk, riskless rates and risk premium |
| 5) | Estimating risk parameters and costs of financing |
| 6) | Measuring earnings |
| 7) | Midterm Exam |
| 8) | From earnings to cash flows |
| 9) | Estimating growth |
| 10) | Estimating terminal value |
| 11) | Free cash flow to equity discount models |
| 12) | Firm valuation and cost of capital |
| 13) | Earnings multiples and book value multiples |
| 14) | Revenue multiples and sector specific multiples |
| 15) | Final Examination Period |
| 16) | Final Examination Period |
| Required/Recommended Readings | 1. Aswath Damodaran, Investment Valuation, (2012), Wiley, 2. Sheridan Titman, John Martin, Valuation: The Art and Science of Corporate Investment Decision, 2013, Pearson. | ||||||||||||||||||
| Teaching Methods | Class presentations and interactive conversations. Students work independently and/or in teams. | ||||||||||||||||||
| Homework and Projects | Applicable | ||||||||||||||||||
| Laboratory Work | Not Applicable | ||||||||||||||||||
| Computer Use | Applicable | ||||||||||||||||||
| Other Activities | Not Applicable | ||||||||||||||||||
| Assessment Methods |
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| Course Administration |
mdogu@doganholding.com.tr |
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| Activity | No/Weeks | Hours | Calculation | ||||
| No/Weeks per Semester | Preparing for the Activity | Spent in the Activity Itself | Completing the Activity Requirements | ||||
| Course Hours | 14 | 2 | 3 | 1.5 | 91 | ||
| Midterm(s) | 1 | 16 | 2 | 18 | |||
| Final Examination | 1 | 16 | 2 | 18 | |||
| Total Workload | 127 | ||||||
| Total Workload/25 | 5.1 | ||||||
| ECTS | 5 | ||||||