Valuation and Creating Sustainable Value

A Comprehensive Course by IIMBx

Course Description

Welcome to the exciting world of valuation and creating sustainable value! This comprehensive course, offered by IIMBx, delves deep into the fascinating realm of company valuation and value creation. Have you ever wondered how companies like Microsoft, Facebook, and Apple achieve such astronomical market values? Or why some companies are acquired for billions of dollars? This course will unlock the mysteries behind these financial phenomena and equip you with the knowledge and skills to understand and apply various valuation techniques.

What Students Will Learn

  • Different techniques of valuation
  • Practical application of valuation methods to real companies
  • Fundamental concepts, myths, and factors underlying valuation
  • Identification of key value drivers
  • The role of different value drivers in creating company value
  • Understanding of the concept of value and its importance
  • Valuation models such as Dividend Discount Model, DCF Model, and Multiples-based Valuation
  • Application of value drivers for creating sustainable value

Prerequisites

  • Basic knowledge of financial accounting concepts
  • It is recommended to watch the Financial Accounting and Analysis (AC105x) course if you have no prior experience

Course Content

  • Introduction to the concept of value and valuation
  • Importance of valuation in various business scenarios
  • Financial statements and accounting ratios
  • Time Value of Money
  • Valuation framework
  • Dividend Discount Model
  • Discounted Cash Flow Method of Valuation
  • Enterprise value and equity value calculation
  • Valuation using multiples
  • Basics of start-up valuation
  • Drivers for creating sustainable value
  • Strategy and its role in value creation
  • Operational efficiency and value creation
  • Managing human capital for value creation
  • Strategic investing and financing decisions
  • Capital budgeting techniques
  • Concept of leverage
  • Corporate governance and its role in value creation

Target Audience

This course is designed for graduate students and working professionals who want to gain a deep understanding of valuation and value creation. It is ideal for those interested in finance, business management, investments, entrepreneurship, and mergers and acquisitions.

Real-World Applications

  • Evaluating investment opportunities
  • Making informed decisions in mergers and acquisitions
  • Assessing company performance and potential
  • Developing strategies for value creation in businesses
  • Understanding market trends and company valuations
  • Enhancing entrepreneurial skills for start-up valuation
  • Improving decision-making in corporate finance roles
  • Analyzing and interpreting financial information for various stakeholders

Course Syllabus

Week 1: Introduction to Value
  • Concept of value & valuation
  • Importance of valuation
  • Financial statements and accounting ratios
  • Time Value of Money
  • Framework of valuation
  • Dividend Discount Model
Week 2: Methods of Valuation
  • Discounted Cash Flow Method of Valuation
  • Enterprise value and equity value calculation
  • Application to real-life companies
  • Expert insights
Week 3: Methods of Valuation (continued)
  • Valuation using multiples
  • Calculation of different multiples
  • Application of multiples to value firms
  • Basics of start-up valuation
  • Introduction to creating sustainable value
Week 4: Drivers for Creating Sustainable Value
  • Strategy and its role in value creation
  • Operational efficiency for value creation
  • Managing human capital for value creation
  • Expert insights
Week 5: Drivers for Creating Sustainable Value (continued)
  • Strategic investing and financing decisions
  • Capital budgeting techniques
  • Concept of leverage
  • Corporate governance and its role in creating value

This course offers a perfect blend of theoretical knowledge and practical application, making it an invaluable resource for anyone looking to enhance their understanding of valuation and value creation in the business world.