CORPFIN 2502 - Business Valuation

The purpose of this course is to present the fundamental principles of securities and business valuations. Participants in the course will learn how to derive the intrinsic value of equity and create arbitrage opportunities for bonds. Students will also learn how to estimate a company's growth rates and decompose its return on equity multiple. The course covers the following valuation models: the capital asset pricing model and its variants (such as the Fama-French three-factor model and the Carhart four-factor model), discounted cash flow models, and relative valuation models that utilise price and enterprise value multiples. Furthermore, the course explores the following topics on bond valuation: spot and forward rate calculations using bootstrapping, the term structure of interest rates, and arbitrage opportunities arising from the simultaneous trading of multiple bonds.