Undergraduate Pre-requisite: QST FE323.- The objective of this course is to understand how companies are valued and provide a framework to approach valuation within any field of finance. Valuation is a critical tool and technique that is required across all sectors within the field of finance: corporate finance, venture capital, private equity, investment banking, and public equity investing. Yet, despite the differences in each of these areas, the approach to valuation is consistent across all disciplines. The guiding principle underlying this course is that value is created when a company earns a return on capital that exceeds its cost of capital. A company’s value is predominantly driven by two factors: the spread between its return on invested capital and cost of capital, and the company’s ability to generate unit growth. Business Valuation will provide the skills necessary to evaluate a company’s business model, analyze published financial statements, convert these financial statements into a model that forecasts its financial statements, assess its cost of capital, and most importantly how to use these inputs to determine its valuation.

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