Notes de cours
Notes / Aantekeningen Value based management (EBM160A05)
- Cours
- Établissement
- Book
Notes / Aantekeningen van colleges & lectures van Value-based management (EBM160A05) in
[Montrer plus]
Livre connecté
Titre de l’ouvrage:
Auteur(s):
- Édition:
- ISBN:
- Édition:
Plus de résumés pour
-
Corporate Valuation for MSc Finance Summary 2022-2023
-
Extensive summary - Valuation: Measuring and Managing the Value of Companies 7th Edition Part 1-2
-
Class notes Strategic Management Valuation, ISBN: 9781119611868
Vendeur
S'abonner
Arjan456
Avis reçus
Aperçu du contenu
Aantekeningen / Notes-
Value-Based Management
(EBM155A05)
Lecturers: Semester 2B year 2022/2023
- Federico Giesenow
- Sebastian Firk
Index
Lecture 1 – Introduction Value-Based Management & Valuation .......................................................... 3
Introduction value based management .............................................................................................. 3
Introduction to Valuation .................................................................................................................... 5
Value and Price ................................................................................................................................ 5
The dividend discount model .......................................................................................................... 6
Tutorial week 1 – Problems week 1 ........................................................................................................ 9
Lecture 2 – Performance, Continuing value, Cost of capital ................................................................. 13
Performance ...................................................................................................................................... 13
Continuing value................................................................................................................................ 15
Cost of capital .................................................................................................................................... 16
Lecture 3 – Reorganizing financials, multiples and validating the valuation ........................................ 20
Reorganizing financials ...................................................................................................................... 20
Multiples............................................................................................................................................ 26
Validating the valuation .................................................................................................................... 26
Tutorial week 4 – Problems ................................................................................................................... 28
Lecture 4 – Advance issues in business valuation - NO EXAM MATERIAL in 2023/2024 ...................... 29
Lecture 5 – Value-Based Management implementation in practice .................................................... 34
Introduction – Why is value based management important ............................................................ 34
Main benefits of value-based management ..................................................................................... 36
Implementation of value-based management.................................................................................. 36
Selection of a overarching value-based metric ................................................................................. 37
Integration in the steering system .................................................................................................... 38
Connection to the corporate strategy............................................................................................... 38
Integration in the incentive system................................................................................................... 39
Support via external and internal communication ........................................................................... 40
“Managerial” Summary ..................................................................................................................... 41
Lecture 6 – Contingency factors and Value-based Management implementation in practice ............ 42
, Contingency theory of management accounting and control (1) ..................................................... 42
The fit between VBM and contingency factors (2)............................................................................ 44
Empirical results on the fit between VBM and contingency factors (3) ........................................... 45
Summary (4) ...................................................................................................................................... 47
Lecture 7 – Q&A exam........................................................................................................................... 47
,Lecture 1 – Introduction Value-Based Management & Valuation
Introduction value based management
Measuring, creating and managing value
- Value based management encompasses the processes for measuring, creating and managing
value
- Which value?
a. Earnings per share
b. Price per share
c. Value per share
- Whose value?
a. The CEO
b. Shareholders
c. Investors
d. Stakeholders
e. …
- Value is value from the perspective of a long-term passive investor
- The value of a business is the
o Value of the expected future free cash flows of the business
o Is the sum of the invested capital and the value of the expected future economic
profits of the business
Using a CAPM-based opportunity cost of capital
- Managers create value by
o Continuing the business if the return on invested capital exceeds the opportunity
cost of capital (ROIC > WACC)
o Growing the business the return on new invested capital exceeds the cost of capital
(RONIC>WACC)
- Which project(s) would you choose if your pay or if your target is tied to maximizing
1) Total earnings
2) Return on invested capital, or
3) Value?
- Managing for value requires to align the firm’s strategy, key performance metrics, targets
and incentives with value creation in the firm’s control and reporting systems
The course Value-based Management
- After passing the course, you are able to describe, to explain, to motivate, to apply, and to
assess the core principles of value based management
- You use the core principles of finance, accounting, management control and business
analysis
- You apply the best practices as documented by Koller (2020) and use by many practitioners
- You use recent academic literature
, Assignments and teams
- The proof of the pudding is in the eating
Assignment 1 (hand in a valuation model in XLSX) workshop of EY 28 april
o Value a real-world company through a business case of EY
o Hand in a valuation model in XLSX
o Negotiate a deal
- Assignment 2 (hand in a presentation in PPTX) present and discuss
o Assesses value based management of a real-world company
o Hand in a presentation in PPTX
o Present and discuss findings
- Assignments are prepared in teams of 4 students
Meetings
- All meetings are in principle mandatory
- Lectures
o We describe, explain, discuss the core principles of value based management and its
implementation
o Guest lecture EY (week 2)
- Tutorials
o “Starting assignments”
o Q&A assignments 1 and 2
o Presentation and discussion result assignment 2
- Workshop
o Negotiate a deal assignment 1: event EY
Examination
- A digital, two-hours, closed-book, no-notes exam with 12 open questions in which you
describe, determine, explain, motivate, interpret, discuss, evaluate …
- Old exams with and without example answers are going to be available on Brightspace 2
weeks before the exam
- Grading
o The final grade is a weighted average of the grade of the exam (60%) and the
average grade of the assignment (40%), provided that both are at least a 5.5.
o The average grade of the assignment in a weighted average of the grade of
assignment 1 (60%) and the grade of assignment 2 (40%)
o Provided that … (read the Course Manual!!)
EXAM: 12 open questions
Lecture of week 5 are just subject to discuss but not for the exam.
Les avantages d'acheter des résumés chez Stuvia:
Qualité garantie par les avis des clients
Les clients de Stuvia ont évalués plus de 700 000 résumés. C'est comme ça que vous savez que vous achetez les meilleurs documents.
L’achat facile et rapide
Vous pouvez payer rapidement avec iDeal, carte de crédit ou Stuvia-crédit pour les résumés. Il n'y a pas d'adhésion nécessaire.
Focus sur l’essentiel
Vos camarades écrivent eux-mêmes les notes d’étude, c’est pourquoi les documents sont toujours fiables et à jour. Cela garantit que vous arrivez rapidement au coeur du matériel.
Foire aux questions
Qu'est-ce que j'obtiens en achetant ce document ?
Vous obtenez un PDF, disponible immédiatement après votre achat. Le document acheté est accessible à tout moment, n'importe où et indéfiniment via votre profil.
Garantie de remboursement : comment ça marche ?
Notre garantie de satisfaction garantit que vous trouverez toujours un document d'étude qui vous convient. Vous remplissez un formulaire et notre équipe du service client s'occupe du reste.
Auprès de qui est-ce que j'achète ce résumé ?
Stuvia est une place de marché. Alors, vous n'achetez donc pas ce document chez nous, mais auprès du vendeur Arjan456. Stuvia facilite les paiements au vendeur.
Est-ce que j'aurai un abonnement?
Non, vous n'achetez ce résumé que pour €2,99. Vous n'êtes lié à rien après votre achat.
Peut-on faire confiance à Stuvia ?
4.6 étoiles sur Google & Trustpilot (+1000 avis)
73314 résumés ont été vendus ces 30 derniers jours
Fondée en 2010, la référence pour acheter des résumés depuis déjà 14 ans