Course detail

Rating and Valuation

FP-FropPAcad. year: 2018/2019

The course focuses on the following topics:
• Rating and its legal treatment, trends in development
• Methods for valuation of a business.
• Strategic analysis for business valuation
• Identification of value drivers
• Practical application of the income capitalization approach

Learning outcomes of the course unit

Knowledge: Students can describe the regulation of ratings, procedures of business valuation as well as current problems associated with the use of ratings. They know the postulates for using of methods for estimation of the business value as well as their limits.
Skills: On the basis of strategic analyses, including financial analyses, students can quantify the most important value drivers. They can recommend an appropriate method for business valuation and in a simplified way to estimate the value of business. They are able to discuss the postulates for the applicability of every valuation method.
Abilities: Students are able to apply valuation methods, to work out the draft of business value, and also identify the factors that increase the value of a business as well as those that threaten it. They are able to model the impacts of strategic decisions on the business value.

Prerequisites

A knowledge of methods of financial planning, models for determining the cost of capital and time series analysis methods and their use in predicting future sales are required for the study of this course. A knowledge of work with MS Excel at a higher level and an ability to find relevant data are expected.

Co-requisites

Not applicable.

Recommended optional programme components

Not applicable.

Recommended or required reading

DAMODARAN, A. Damodaran on valuation: security analysis for investment and corporate finance. 2 Ed. Hoboken: John Wiley & Sons. 2006. ISBN 0-471-75121-9 (EN)
MAŘÍK, M. a kol. Metody oceňování podniku:proces ocenění,základní metody a postupy.2011, 494 s.. Praha: Ekopress, ISBN 978-8086929-67-5. (CS)
MAŘÍK, M. a kol. Metody oceňování podniku pro pokročilé: hlubší pohled na vybrané problémy. Praha: Ekopress, 2011. 548 s. ISBN 978-80-86929-80-4 (CS)
DAMODARAN, A. Investment valuation: tools and techniques for determining the value of any asset. 2 Ed. New York: John Wiley & Sons. 2002. ISBN 0471414883 (EN)
McKINSEY & COMPANY, KOLLER, T., GOEDHART, M., WESSELS, D. (2005) Measuring and Managing th Value of Companies. 4th Editon (University Edition). New Jersey: Wiley. 742 p. ISBN 978-0-471-70221-4. (EN)
JUREČKA, J. Oceňování ochranné známky jako součásti nehmotného majetku. 2. přepr. vyd. Praha: VŠE a IOM, 2007. ISBN 978-80-245-1303-4 (CS)
MAŘÍK, M. a kol. Metody oceňování podniku:proces ocenění,základní metody a postupy.2011, 494 s.. Praha: Ekopress, ISBN 978-8086929-67-5. (CS)
MAŘÍKOVÁ, P. a MAŘÍK, M. Diskontní míra pro výnosové oceňování podniku. 1. vyd. Praha: VŠE a IOM, 2007. ISBN 978-80-245-1242-6 (CS)
MAŘÍK, M. a MAŘÍKOVÁ, P. Moderní metody hodnocení výkonnosti a oceňování podniku. 2. přepr. a rozš. vyd., Praha: Ekopress. 492 s. ISBN 978-80-86929-32-3. (CS)
MAŘÍK, M. a kol. Metody oceňování podniku pro pokročilé: hlubší pohled na vybrané problémy. Praha: Ekopress, 2011. 548 s. ISBN 978-80-86929-80-4 (CS)
MAŘÍKOVÁ, P. a MAŘÍK, M. Diskontní míra pro výnosové oceňování podniku. 1. vyd. Praha: VŠE a IOM, 2007. ISBN 978-80-245-1242-6 (CS)
ŠANTRŮČEK, J. Pohledávky, jejich cese a hodnota. 2. aktualizované vyd. Praha: Oeconomia, 2005. ISBN 80-245-0873-7 (CS)
MAŘÍK, M. a MAŘÍKOVÁ, P. Moderní metody hodnocení výkonnosti a oceňování podniku. 2. přepr. a rozš. vyd., Praha: Ekopress. 492 s. ISBN 978-80-86929-32-3. (CS)
JUREČKA, J. Oceňování ochranné známky jako součásti nehmotného majetku. 2. přepr. vyd. Praha: VŠE a IOM, 2007. ISBN 978-80-245-1303-4 (CS)
ŠANTRŮČEK, J. Pohledávky, jejich cese a hodnota. 2. aktualizované vyd. Praha: Oeconomia, 2005. ISBN 80-245-0873-7 (CS)
VINŠ, P. a LIŠKA, V. Rating. Praha: C.H.Beck, 2005. ISBN 80-7179-807-X. (CS)

Planned learning activities and teaching methods

The course contains lectures that explain the basic principles, problems and methodology of the discipline. The seminars especially promote the practical knowledge of the subject presented in the lectures.

Assesment methods and criteria linked to learning outcomes

Students will be assessed on the basis of an independent piece of work focussed on valuation of a business and its defence, including verification of theoretical knowledge. In the resulting assessment of the course the assessment of the independent piece of work has a 70% share, in which work is acceptable that fulfils the requirements to a level of at least 50%.

Language of instruction

Czech

Work placements

Not applicable.

Course curriculum

Investment and business ratings. Credit Rating Agencies (CRA).
Testing the predictive capacity of financial ratio indicators. Scoring’s models of bankruptcy prediction.
Methodological procedures for ratings of a company estimation and business valuation.
Income capitalization approach to valuing the business.
Strategic analysis for the purpose of business valuation. A draft of financial plan
Discount rate for business valuation.
Assignment of business valuation of a specific entity in pairs:
• Strategic and financial analysis of the company.
• Analysis of value generators.
• Financial plan. Determination of discount rate.
• Draft of the business value (the discounted cash flow method).
• The sensitivity of valuation to changes in value drivers, discussion the results.

Aims

The main objective of the course is:
To present students with approaches to the creation of default models (scoring models), the importance of ratings and how they are regulated and the procedure for creating investment ratings.
To acquaint students with current procedures for business valuation. The course is also focused on the strategic analysis of a business, especially from the perspective of estimation of value drivers, on methods for developing financial plans and the creation of computer models and the application of methods for business value estimation.

Specification of controlled education, way of implementation and compensation for absences

Control of results of independent work on assigned tasks.

Classification of course in study plans

  • Programme MGR Master's

    branch MGR-UFRP , 2. year of study, summer semester, 6 credits, compulsory

Type of course unit

 

Lecture

20 hours, compulsory

Teacher / Lecturer

Exercise

20 hours, compulsory

Teacher / Lecturer

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