Dr. P.V. Viswanath



Economics/Finance on the Web
Student Interest

  Courses / FIN 340/  

FIN 340: Valuation of the Firm
Course Outline and TimeTable


Spring 2008


Class Meeting Week and Days


Projects and other Deadlines

Meeting 1
January 28

Introduction and Overview of Firm Valuation (Slides)

Read Damodaran, Chapter 4

Meeting 2
February 4

Introduction to Using Bloomberg
Firm Valuation (Continuation) and Porter Analysis (Slides)

Choose firms

Meeting 3
February 11

Equity Risk and Expected Return (Slides; Excel file on diversification);
Estimating Hurdle Rates for Firms (Using the CAPM; Slides)

Read Damodaran, Chapters 7, 8
Do Problems from Chapter 4

Meeting 4
February 25

Estimating Cost of Capital (Excel file on Beta Computation)

Porter Analysis due Feb. 18
Problems from Chapter 4 to be turned in
Industry and Competitive Analysis ready
Do Problems from Chapter 7

Meeting 5
March 3

Presentation of Porter Analyses

Compute Cost of equity capital, cost of debt capital and WACC
Do Problems from Chapter 8

Meeting 6
March 10


Exam based on Chapters 4, 7 and 8

Meeting 7
March 24

Presentation of WACC computations

Meeting 8
March 31

Earnings to Cashflow

Damodaran, Chapters 9 and 10

Meeting 9
April 7

Adjustment of Operating Cashflows and R&D

Meeting 10
April 14

Presentation of Cashflow estimations
Estimating Growth Rates and Terminal Values

Damodaran, Chapters 11 and 12

Meeting 11
April 21 (no class; Passover)

Time to work on Final Equity Research Report submission

Meeting 11
April 28
Different Valuation models -- DDM, FCFE and FCFF Damodaran, Chapter 14

Meeting 12
May 5

Multiples Valuation Damodaran, Chapters 18, 19 and 20
Meeting 13
May 12
Final Exam Exam based on Chapters 9-12, 14, 18-20

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