Corporate Valuation: What Is a Company Worth?

"We got to actually experience buying and selling stocks through the virtual stock exchange game."

                                                                                               - Jenny Lee, 2009

"Lectures were very fast-paced and informative and challenging, but the professor's and TA's would always make it entertaining."

                                                          - from a 2009 student course evaluation

Course Description

Corporate valuation is the process of determining the worth of a firm. In order to evaluate new projects, consider mergers and acquisitions, or make strategic decisions, the financial analyst must understand the factors that drive corporate value. This course introduces the basic techniques used to measure the worth of the company and its investments. Since public companies are valued in the context of the broader stock market, it will be necessary to examine both internal and external factors that determine prices in the context of the global economy.

Participants assume the role of financial analysts and learn the mechanics of market valuation as they manage their own portfolios of stocks in a session-long stock market simulation game. Concepts introduced in the lectures are incorporated into the simulation game as students learn to interpret accounting statements and understand investment theory and strategy. Participants revise their portfolios as macroeconomic and political factors emerge.

Each analyst is expected to prepare a final project evaluating a company of their choice from the multiple perspectives introduced in class.

Participants are encouraged, but not required, to bring laptops for this class.

Instructor(s)