Entry requirements

The course is offered to students participating in an exchange program, to students of regular programs as well as a separate course during the fourth year. Prerequisite is 60 points (90 ECTS) in Business Administration. It is strongly recommended that the student has knowledge corresponding to advanced financial accounting (Redovisning) and consolidated financial statements (Koncernredovisning).

Aims

The aim of the course is to provide an understanding of how financial statements, together with other quantitative and qualitative judgments, can be used for valuation of companies.

Content

The course is designed so that the major part of the work is performed as a term paper project in which the students make comprehensive fundamental valuations of companies.

In the process of performing their valuations of companies special evaluation problems arise and are discussed. Another important part of the valuation process is the making of forecasts. The forecasts are made based on historical time-series and cross-sectional financial analysis infused with strategic analysis.

Based on the forecasts the companies' values are estimated using several different valuation models such as the dividend valuation model, the free cash flow valuation model and the residual income valuation model. The students are required to show that the estimated value for each firm is independent of the valuation models.

A press release is issued at the end of the course. It is based on the results of the company valuation reports and makes sell and buy recommendations.

Instruction

The course is taught in English. The in-class teaching consists of lectures, seminars, and tutoring.

Assessment

To pass the course the students have to take active part in the seminars and successfully complete the term project. The student?s grade depends on the participation in the seminar and on the term paper?s grade. Moreover all remaining tasks must be completed and handed in at least within four weeks after the end of the course otherwise this part of the examination has to be redone the following semester , provided there is space in the course.