Course detail

Rating and Valuation

FP-FropKAcad. year: 2023/2024

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.

Entry knowledge

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

Rules for evaluation and completion of the course

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 40 points.

The exam is written and students may score 60 points on the exam. The content includes both theoretical questions and examples. To pass the exam, the student must score a minimum of 30 points. The maximum length of the exam is 80 minutes.

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


Control of results of independent work on assigned tasks.

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.

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.

Study aids

Not applicable.

Prerequisites and corequisites

Not applicable.

Basic literature

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

Recommended reading

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

eLearning

Classification of course in study plans

  • 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 hours, optionally

Teacher / Lecturer

eLearning