Essentials of Corporate Valuation

This subject examines the key concepts and methodologies used in the valuation of corporations and other business interests including stand‐alone projects, joint ventures and private equity. Topics include: cashflow‐based approaches, multiples‐based approaches, forecasting cashflows and earnings, estimating discount rates, adjustments for leverage, adjustments for imputation, the valuation of franking credits, adjustments for flexibility, valuation by replication, valuation in the digital economy. There will be an extensive use of real‐world examples and cases throughout the course.

• 1Identify and explain the role of valuation in the economy;
• 2Understand and apply cashflow-based valuation methods;
• 3Understand and apply multiples-based valuation methods;
• 4Analyse and interpret discount rates and earnings multiples;
• 5Demonstrate and explain how to properly account for leverage and flexibility;
• 6Examine the impact of imputation on alternative valuation methods;
• 7Apply the principle of replication to value complex financial securities; and
• 8Critically evaluate the use of alternative valuation methods in the digital economy.