AEM 4280 - Valuation of Capital Investment

Spring. 4 credits. Letter grades only (no audit).

Prerequisite: AEM 2200, AEM 2240 or equivalent.

D.T. Ng.

Focuses on the analysis of financial information-particularly firms’ financial reports-for making decisions to invest in businesses. The primary focus is on equity (share) valuation, with some attention given to credit analysis. Examines various valuation models in detail and applies them in cases and projects involving listed companies. Topics include models of shareholder value, discounted cash flow approaches to valuation, the analysis of profitability, growth, and valuation generation in a firm, forecasting earnings and cash flows, proforma analysis for strategy and planning, analysis of risk, and the determination of price/earnings and market-to-book ratios.