Business Valuation

Syllabus

SE FIN - 10: Business Valuation

UNIT-1

Overview of Valuation: What is Value; Differentiate Price and Value; Who Values Businesses; Purpose of a Valuation; Principles of Valuation; Definition of Standard of Value (Basis of Valuation), Fair Market Value, Fair Value, Investment Value, Intrinsic Value; Premise of Value- Going Concern, Liquidation; Valuation Process; Valuation Standards.                                                                                  (7+2)

UNIT-2

Income and Market Based Valuation Techniques: Discounted Cash Flow Analysis (DCF); Comparable Transactions Method; Comparable Market Multiples Method; Market Valuation; Free Cash Flow to Equity; Dividend Discount Model; Net Asset Valuation; Relative Valuation; Overview of Option Pricing Valuations (Numerical Aspect of the Methods should be Discussed).                                                 (6+3)

UNIT-3

Asset Based and Theoretical Valuation Models: Dividend Discount Model; Net Asset Valuation; Relative Valuation; Overview of Option Pricing Valuations (Numerical Aspect of the Methods should be Discussed).     (6+3)

UNIT-4

Advanced Issues in Valuation: Valuation of Tangible Assets; Valuation of Intangible Assets (Patents, Trademarks, Copyrights and Licenses; Franchises; Brands etc.).                  (7+2)

UNIT-5

Valuation During Mergers & Acquisitions: Merger and Acquisition Process, Regulatory Consideration, Due Diligence and Calculation of the Value of the Company, Criteria for Selection of Method.        (7+2)