Rating and Valuation
FP-FropKAcad. year: 2019/2020
The course focuses on the following topics:
• Rating and its legal treatment, trends in development
• Methods for determining the value of an enterprise
• Strategic analysis for the purpose of assessment of the value of the enterprise
• Identification of value generators
• Practical application of the revenue method for valuing enterprises
Learning outcomes of the course unit
Knowledge: Students can describe the regulation of ratings, procedures for determining the value of an enterprise as well as current problems associated with the use of ratings. They know the conditions for the use of methods for determining the value of an enterprise as well as their limits.
Skills: On the basis of strategic analyses, including financial analyses, students can quantify value generators and determine a preliminary valuation of an enterprise. They can recommend an appropriate method for determining the value of an enterprise and in a simplified manner determine the value of an enterprise. They are able to discuss the conditions for the applicability of the valuation determined.
Abilities: Students are able to apply methods leading to determining the value of an enterprise, determine the value of an enterprise, and also identify the factors that increase the value of an enterprise as well as those that threaten it. They are able to model the impacts of strategic decisions on the value of an enterprise.
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.
Recommended optional programme components
Recommended or required reading
MAŘÍKOVÁ, P. a MAŘÍK, M. Diskontní míra pro výnosové oceňování podniku. 1. vyd. Praha: VŠE a IOM, 2007. ISBN 978-80-245-1242-6
MAŘÍK, M. a kol. Metody oceňování podniku:proces ocenění,základní metody a postupy.2011, 494 s.. Praha: Ekopress, ISBN 978-8086929-67-5.
JUREČKA, J. Oceňování ochranné známky jako součásti nehmotného majetku. 2. přepr. vyd. Praha: VŠE a IOM, 2007. ISBN 978-80-245-1303-4
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
ŠANTRŮČEK, J. Pohledávky, jejich cese a hodnota. 2. aktualizované vyd. Praha: Oeconomia, 2005. ISBN 80-245-0873-7
VINŠ, P. a LIŠKA, V. Rating. Praha: C.H.Beck, 2005. ISBN 80-7179-807-X.
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.
DAMODARAN, A. Damodaran on valuation: security analysis for investment and corporate finance. 2 Ed. Hoboken: John Wiley & Sons. 2006. ISBN 0-471-75121-9
DAMODARAN, A. Investment valuation: tools and techniques for determining the value of any asset. 2 Ed. New York: John Wiley & Sons. 2002. ISBN 0471414883
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.
Planned learning activities and teaching methods
The course is focused on the explanation of the main principles and presentation of the decision problems as well solution of model situation.
Assesment methods and criteria linked to learning outcomes
Students will be assessed on the basis of an independent piece of work focussed on valuing an enterprise 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
• Investment and business ratings. Rating companies.
• Testing the predictive capacity of financial ratio indicators. Models for credit rating companies.
• Methodological procedures for determining ratings and the value of enterprises.
• Methods for determining the value of enterprises.
• Strategic analysis for the purpose of determining the value of an enterprise. A financial plan for the purpose of determining the value of an enterprise.
• Discount rate for the purposes of determining the value of an enterprise.
• Creating a proposed valuation of a specific enterprise in pairs. Procedure: strategic and financial analysis of the company. Analysis of value generators. Financial plan. Determination of discount rate. Proposing the enterprise value using the discounted cash flow method. The sensitivity of valuation to changes in value generators, discussion of the valuation.
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 determining the value of an enterprise. The course is also focussed on the strategic analysis of an enterprise, especially from the perspective of seeking bearers (generators) of value, on methods for creating financial plans and the creation of computer models and the application of methods for determining the value of an enterprise.
Specification of controlled education, way of implementation and compensation for absences
Control of results of independent work on assigned tasks.