Valuation: Measuring & Managing the Value of Companies

Sample Valuation Course: Lecture Notes and Readings

Professor David Wessels, the Wharton School of the University of Pennsylvania

Section	Week	Topic	Reading	Case
Frameworks for Valuation	1	Fundamentals of Value Creation 1. Fundamentals of Measuring and Managing Value	Ch 2
	2	Analyzing Key Value Drivers
		2. Return on Invested Capital	Ch 4
		3. Revenue Growth	Ch 5
	3	Frameworks for Valuation		Case Due: Who are Henkel and Reckitt Benckiser?
		4. Enterprise DCF and Economic Profit Models	Ch 6, pages 101-119
		5. Adjusted Present Value	Ch 6, pages 119-129
Analyzing Historical Performance	4	Reorganizing the Financial Statements 6. Reorganizing the Financial Statements	Ch 7
	5	Analyzing Performance 7. Analyzing Performance and Competitive Position	Ch 8
	6	Advanced Financial Analysis		Case Due: Reorganizing the Financials
		8. Taxes	Ch 25
		9. Pensions, Leases and Other Obligations	Ch 27
Building the Valuation Model	7	Forecasting Performance		Case Due: Competitive Benchmarking
		10. The Explicit Forecast Period	Ch 9
		11. Continuing Value	Ch 10
	8	The Weighted Average Cost of Capital
		12. The Cost of Equity	Ch 11, pages 231-257
		13. The Cost of Debt	Ch 11, pages 257-266
	9	Putting the Model to Work
		14. From Enterprise to Equity Value	Ch 12
		15. Calculating and Interpreting Results	Ch 13
Alternative Methods of Valuation	10	Alternatives to DCF 16. Multiples	Ch 14	Case Due: The Cost of Capital
	11	17. Real Options	Ch 32	Case Due: Final Valuation