Course detail

Rating and Valuation

FP-FropKAcad. year: 2022/2023

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

Language of instruction

Czech

Number of ECTS credits

6

Mode of study

Not applicable.

Guarantor

prof. Ing. Mária Režňáková, CSc.

Department

Institute of Finances (ÚF)

Learning outcomes of the course unit

Knowledge: Students can describe the procedures of 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 students can quantify value generators and determine a preliminary valuation of a business. They can recommend an appropriate method for determining the business value and in a simplified manner determine the value of a business. 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 business value 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- business value.

Prerequisites

A knowledge of methods of financial planning, models for determining the cost of capital.

Co-requisites

Not applicable.

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 evaluated in exercises based on presentations of partial results of a case study focused on determining the value of a business. The presentations can earn 30 points.

The exam is written and students may score 70 points on the exam. The content includes both theoretical questions and examples. To pass the exam, the student must score a minimum of 35 points. The maximum length of the exam is 100 minutes.

The final grade is the sum of the points from the practical and the written exam according to the ECTS rules.

Course curriculum

  • Investment and business ratings. Rating companies. Methodological procedures for determining ratings.
  • Methods for determining the value of a business. Valuation process.
  • Strategic analysis for business valuation.
  • Value drivers. A financial plan for business valuation.
  • Discount rate.
  • Continuing value.
  • Specific issues in determining the value of a business.
  • Others valuation methods

Work placements

Not applicable.

Aims

The main objective of the course is:
- to present students the importance of rating and its use, types of rating, the process of creating investment rating;
- to familiarize students with approaches to determining the value of a business;
- to lead students to learn the income methods of determining the value of a business.

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

Control of results of independent work on assigned tasks.

Recommended optional programme components

Not applicable.

Prerequisites and corequisites

Not applicable.

Basic literature

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
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
MAŘÍK, M. a kol. Metody oceňování podniku:proces ocenění,základní metody a postupy.2011, 494 s.. Praha: Ekopress, ISBN 978-8086929-67-5.
VINŠ, P. a LIŠKA, V. Rating. Praha: C.H.Beck, 2005. ISBN 80-7179-807-X.

Recommended reading

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.
ŠANTRŮČEK, J. Pohledávky, jejich cese a hodnota. 2. aktualizované vyd. Praha: Oeconomia, 2005. ISBN 80-245-0873-7

Elearning

eLearning: currently opened course

Classification of course in study plans

  • Programme MGR-KS Master's

    branch MGR-UFRP-KS-D , 2 year of study, summer semester, compulsory

  • Programme MGR-UFRP-KS Master's 2 year of study, summer semester, compulsory

Type of course unit

 

Guided consultation in combined form of studies

20 hod., optionally

Teacher / Lecturer

prof. Ing. Mária Režňáková, CSc.

Syllabus

24.2. Rating. Postup a metody určování hodnoty podniku. Strategická analýza

10.3. Provozně nutný majetek. Generátory hodnoty. Finanční plán a jeho vyhodnocení

24.3. Diskontní sazba. Pokračující hodnota. Prezentace upravených výkazů a finančního plánu.

30.3. Další výnosové metody a metody tržního porovnání. Prezentace výsledného ocenění.

Elearning

eLearning: currently opened course