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An Integrated Approach towards Value Creation & Value Destruction ( which is to be avoided )
Practice in communication & defending an argument
A business analysis framework that helps tie together Strategy & Finance
Opportunity to coordinate Model Building with Decision Making
Practical Approaches to Profiting in Public Markets
Students should be able to integrate business sense with financial techniques. Accordingly, each class will
have a significant participation component. Debate will be encouraged, as the highest grades will be
awarded to well defended arguments, not correct answers.
Class Participation is important for a number of reasons. First, you learn a lot more through active
participation in a process. Second, Equity Analysis is learned through practice mistakes must be made,
and recommendation risk must be taken. Third, even the best analysts must learn to effectively sell ideas.
One Final Note: if I have done my job properly, many students will, in a few years, become better at
Securities Analysis than the Instructor. If you are fortunate enough to someday become this proficient, be
humble and continue to respect your colleagues. Wall Street is littered with egos we will spend time on
how to set your goals high but be respectful of the markets & its participants.
ATTENDANCE TAKEN EACH CLASS.
NO LAPTOPS OPEN. NO MOBILE PHONES if you want to use your mobile device, then please leave the
room. STUDENTS WITH DISABILITES: PLEASE INFORM ME OF HOW TO ASSIST.
Course Outline
Jan 26
Introduction. Model Building, Quarterly Forecasting, EDGAR. What Moves Stock Prices?
Introduction to Valuation using www.damodaran.com and all those tools.
Blackboard: Survey of Valuation Methods
NOTE: START READING FEB 23rd READINGS NOW
Feb 2
Enterprise Valuation & Cash Flow Analysis: EBITDA & Free Cash Flow
Feb 9
Enterprise Valuation & Cash Flow Analysis: Does Capital Structure Matter?
How to Slant your Valuation based on Cash Flows, Debt & Margins.
2 Blackboard: Dealing with Cash, Cross Holdings & NonOperating Assets; Leases
Debt & Value
Feb 16
Fri Feb 20
Feb 23
HW 1 Due
Valuation Models: Various Slants towards valuation and different modeling approaches.
6 Blackboard: Multiples in Valuation; Valuation with No Earnings, History and no
Comps; Valuing Companies with Intangible Assets; Valuing Young & Startups;
Valuing Declining & Distressed Firms; Valuing Cyclical & Commodity Firms
Mar 2
Mar 9
Mar 16
Mar 23
HW 2 Due
Mar 30
Acquisition Analysis
2 Blackboard: Acquisition Analysis; Value of Synergy
Apr 6
Apr 13
HW3 Due
Case Study: Evaluating & Valuing a Firm with Multiple Business Lines & Sum of the
Parts Analysis. Analyst Conference Call How Management Presents the Numbers
Apr 17
Portfolio Positioning
FRIDAY AFTERNOON: Holiday Makeup for Patriots Day on 20Apr
Apr 20
Apr 27
Shorting Stocks how is Short Selling Different than the Long Side ?
May 4
Grading Criteria
Participation
20%
Homeworks
35%
Final Project
45%
HW2:
Upgrade HW1
Grading more heavily weighted on the Investment Thesis
HW3:
I will pick a company & put Wall Street reports on the website you can comment on these & build
your reports using available data. Be sure to write a full report, including relevant appendices.
FINAL PROJECT:
Hand in Reports for 2 Companies
a) Your Original Company ( Update of HW1 & HW2 )
b) A New Company of Your Choice
OBJECTIVES
Upon successful completion
of this course, students
should be able to:
ASSESSMENTS
How the student will be
assessed on these
learning objectives:
Grading of Valuation
Section in Each Report;
Class Discussions
Detailed Written
Homeworks and Lengthy
Final Project
Detailed Lecture followed
by Sum of the Parts
Assignment; Class
Discussions
Class Discussions,
Detailed Written
Homeworks, Lengthy Final
Project
Detailed Written Reports
and Comprehensive Final
Project; Examples in Class
Discussions
Detailed Written Reports
and Comprehensive Final
Project
Detailed Written Reports
and Comprehensive Final
Project; Examples and
Class Discussions
Class Discussions