What makes a business valuable? Who determines value? What are the key factors that make businesses valuable? In this course, we explore the different ways to value a business. We will apply foundational valuation and corporate finance concepts to real world examples in an effort to see what makes up an investment's price.
Learning Objectives
- Describe the factors affecting the value of a business
- Compare and contrast market value, investment value, bankruptcy value, and going concern value
- List the key differences between technical and fundamental analysis
- Calculate intrinsic value using discounted cash flow methods, such as the GGM and the H-Model
- Calculate intrinsic value using free cash flow
- Calculate the gains and losses to the buyer/seller in a merger/acquisition
- List key discounts when valuing privately held companies
Major Topics
- What does value mean?
- Technical vs. fundamental analysis
- Intrinsic value
- Other discounted cash flow models
- Assumptions in the Gordon Growth Model
- Valuations using free cash flows
- Residual income model
- Enterprise value
- Value in mergers and acquisitions
- Small business valuations and discounts
- Advanced valuation models
