Business and management studies

Valuation of Companies and Cash Flow Generating Assets

Module code: N1591
Level 6
15 credits in autumn teaching
Teaching method: Lecture, Seminar
Assessment modes: Unseen examination, Coursework

You explore the different methods of valuing businesses - looking at public companies and private firms. 

You analyse the fundamental drivers of value, and the main approaches, including:

  • discounted cash flows
  • multiples
  • real options. 

You focus on the discounted cash flow approach and discuss in detail how to estimate the necessary inputs, for example cash flows, discount rates and growth, and the importance of selecting the correct data to get accurate estimates. 

Module learning outcomes

  • Critically evaluate the fundamental drivers of value and the main valuation approaches.
  • Identify the inputs required by the various approaches, and be able to estimate them.
  • Distinguish among various types of situations/firms, and be able to select the most appropriate input data and valuation approach.
  • Demonstrate the ability to be able to implement the various approaches.