AEM 4280 Valuation of Capital Investment
Spring. 3 credits. Prerequisites: AEM 1200 and 3240 or equivalents. D. T.-C. 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.