Dr. P.V. Viswanath
School of Business
Lubin School of Business
PLV and PNY
Department: Finance and Economics
Proposed Course Number:
Proposed Course Title:
Valuation of Firms: Theory and Practice
Proposed Number of Credits: 3
7. Catalog Description: This course deals with the valuation of corporate securities, primarily stocks. Students will learn about the techniques of investigating and valuing stocks. Most of the course will be devoted to the valuation of stocks based on fundamental analysis, paying attention to the macro-economy as well as to firm-specific issues such as industry characteristics, quality of accounting numbers, forecasting growth and using appropriate discounted cash flow and relative valuation models.
8. Objective and rationale for the course. The Lubin School currently has several courses, such as FIN 320, FIN 351 and ACC 360 that explain the accounting and financial concepts relevant to asset valuation. These courses also explain how these concepts would apply to actual firms. The present course would go one step further, by bringing all these principles together in the valuation of actual corporate securities, primarily stocks. Such a course gives the sort of hands-on experience that is crucial for students to, on the one hand, learn effectively, and, on the other, to convincingly present themselves as qualified candidates for jobs in finance fields, such as Mergers and Acquisitions, Stock Analysis, Portfolio Management and others.
Which students are expected to be served? Finance 320, which deals with
Corporate Financial Analysis, is a prerequisite for this course.
Hence, most of our students will be Finance majors.
However, we hope to attract specific non-finance majors as well,
such as Accounting students and Marketing students who are interested
in the marketing of financial services.
Other Lubin majors who can demonstrate the necessary competence
are welcomed as well.
How does this course relate to the department's total program?
course will become an additional finance elective; it will also be a course
that students following the corporate finance track would be expected
Are there courses elsewhere in the department, school or university,
which are similar to this proposed course?
12. Who is expected to teach this course and what will be the probable teaching method? Professors Viswanath will be teaching this course, to begin with. However, other finance faculty, such as Professor Kadiyala and Professor Ottoo, who is a CFA, can also teach the course. The teaching method is partly lectures. Students are also expected to make presentations. Significant amounts of learning are also expected to occur through Blackboard.
When will the course be first offered and what is the expected
frequency of future offerings? Fall 2007; one section per semester; the offering might
alternate between PLV and PNY, according to needs.
What are the texts, bibliography and related educational
material required for students in this course?
The primarily text will be Aswath Damodaran, Investment
Valuation, John Wiley and Sons, Second Edition, 2002.
Students will be expected to keep abreast of economic and financial
news by reading periodicals such as the Wall Street Journal, Investors
Business Daily and the Economist.
They will also extensively use programs such as StockVal and Bloomberg,
as well as Internet websites such as http://finance.yahoo.com
to research the stocks. Professor
Damodaran also maintains a website with up-to-date information, which
students will use. The text
is also supplemented by notes on Prof. Viswanath’s website.
textbooks: Aswath Damodaran, Investment Valuation, John
Wiley and Sons, Second Edition, 2002.
What are the topics to be covered in this course?
Tentative List of Topics to be Covered
is also envisaged that there will be guest speakers, mainly equity analysts,
who will be invited about a couple of times per semester.
Additional Course Requirements: Periodical reports
on relevant topics, as well as PowerPoint presentations of stock recommendations
(see proposed course calendar).
At least one exam, perhaps two -- a Midterm and Final
Cases/Group Assignments: Students will form groups and investigate a company selected in consultation with the instructor. They will be required to value the company, write a report on it and make a presentation to the class.
Additional Readings, Class Participation: Students will be expected to keep up with business news. Active student class participation will be important, both in class and on Blackboard.