NICMAR University, Pune
CORPORATE VALUATION AND L T P C
ACF 651
INVESTMENT BANKING 2 0 0 2
Ver.1, 2022 Programme: Integrated MBA Total credit hours: 2*14 = 28
Course Objective: This course develops student understanding of corporate valuation and
investment banking. It will also cover different approaches of valuation and business segments
of investment banking. Furthermore, the course develops the core fundamentals of business
valuation by making use of financial modeling with excel.
Course Outcomes (CO): The students will be able to.
1 Explain the conceptual framework of Valuation.
2 Analyse different valuation approaches.
3 Compare different valuation methods.
4 Evaluate the value of a company/firm.
5 Examine the different business segments of Investment Banking.
Course Leader: Dr. K T Vigneswara Rao
Pre-requisites: Corporate Finance/Financial Management
Lab/ Practical/Software/Site Visit, details: N/A
Course Contents:
Course Description: This course is designed to impart fundamental valuation Credit
concepts, methods, and abilities with this as the primary learning outcome. It Hours %
covers a variety of corporate valuation techniques and takes a case-based
approach to help students to apply concepts into practical frameworks for valuing
businesses. This course also provides insights of different business segments of
Investment banking.
UNIT I: Introduction to Valuation 14%
Introduction- Nature and Scope – Types of values- Objectives – Need and
Importance of Valuation- Financial Statements – Income statement (IS)- Balance
Sheet (BS), Cash flow statement (CFS) – Financial Statement Analysis (with
valuation perspective) – Principles and techniques of Valuation – Errors and
Misconceptions of Valuation.
UNIT II: Approaches to Valuation 43%
Approaches to Valuation – Valuation Drivers-Balance Sheet Approach - Income
approach- DCF Approach – Issues in DCF Valuation- Estimating Discount Rates:
WACC Calculation -Forecasting Cash Flows -Estimating Terminal Values -FCFE
Model -.DCF-FCFF Models – Relative valuation - Market Multiples - Adjusted
Present Value Method (APV) - Contingent Valuation Methods -Real Options
Valuation method - Economic Value Added (EVA) and Market Value Added
(MVA) method of Valuation-Excel Exercises on Company Valuation.
UNIT III: Investment Banking 43%
Introduction to Investment Banking (IB)- Global Industry structure- Business
Portfolio of Investment banks -The IB Customer and Investment Banking- The IB
Business of Equities-Management of Public Issues-IPOs-Rights Issues- Public
Issue of Debt/Fixed Income Securities -Private Placement of Debt and Equity
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NICMAR University, Pune
Securities - Corporate Advisory Services- The Business of Mergers and
Acquisitions- Wealth Management- SEBI Regulatory framework of IB.
Pedagogy for Course Delivery:
Learning outcomes include developing students’ knowledge with respect to theoretical aspects,
exercises and company valuation. Accordingly, pedagogy for course delivery includes theoretical
lectures, conceptual framework of valuation supported by industry relevant case studies.
Financial modelling exercises are included to provide experiential learning of valuation and
investment banking. Student assignments would include individual and group case analysis
submissions with focus on presentations.
Reading List:
Required:
T1. Damodaran, A. (2016). Damodaran on Valuation: Security Analysis for Investment and
Corporate Finance. John Wiley & Sons.
T2. Subramanyam, P. G. (2005). Investment Banking: An odyssey in high finance. Tata McGraw-Hill.
Recommended:
R1. Fernández, F. L., Fernández, P., Fernandez, P., & López, P. F. (2002). Valuation methods and
shareholder value creation. Academic Press.
R2. Liaw, K. T. (2011). The business of investment banking: A comprehensive overview.
Theory Assessment:
End Term
Continuous Assessment/Internal Assessment (40%)
Examination
Assignment/
Components Case Study Quiz/ Test Field Work
Presentation
Weightage (%) 20% 20% 20% 0 60%
PSO-CO mapping
Programme Specific
PSO1 PSO2 PSO3 PSO4 PSO5
outcomes
CO1,
CO3, CO4,
Course Outcome mapping CO2,
CO5
CO5
Unit mapping I, III II, III
GC PC GEPE AEC MNG
Course Category
√
Workshop Seminar Project MOOC
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NICMAR University, Pune
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