| Economics (English) | |||||
| Bachelor | TR-NQF-HE: Level 6 | QF-EHEA: First Cycle | EQF-LLL: Level 6 | ||
| Course Code: | MNG306 | ||||
| Course Name: | Feasibilty and Valuation | ||||
| Semester: | Fall | ||||
| Course Credits: |
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| Language of instruction: | English | ||||
| Course Condition: | |||||
| Does the Course Require Work Experience?: | No | ||||
| Type of course: | Departmental Elective | ||||
| Course Level: |
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| Mode of Delivery: | Face to face | ||||
| Course Coordinator: | Prof. Dr. MİNE MUKADDES AFACAN FINDIKLI | ||||
| Course Lecturer(s): | Kadri Özgüneş | ||||
| Course Assistants: |
| Course Objectives: | This course is about the analysis of financial information - particularly firms’ financial statements – for making decisions to invest in businesses. The primary focus is on equity (share) valuation, with some attention given to credit analysis and the valuation of debt. The methods of fundamental analysis will be examined in detail and applied in cases and projects involving listed companies. Topics include models of shareholder value, a comparison of accrual accounting and discounted cash flow approaches to valuation, the analysis of profitability, growth and value generation in a firm, diagnosing accounting quality, forecasting earnings and cash flows, pro-forma analysis for strategy and planning, and the determination of price/earnings (P/E) and market-to-book (P/B) ratios. Basic fundamentals of feasibility analysis and its applications to valuation studies are also the objective of the course. The course does not “assume market efficiency”. Rather, it develops the techniques for challenging traded prices in order to assess whether investments are appropriately priced. It adopts the philosophy that one of the risks in investing is the risk of paying too much. The course will be taught from the perspective of designing techniques to be used in an (independent) equity research department or firm. Accordingly, the material is pertinent to the security analyst – particularly the equity analyst – who must issue a buy, hold or sell recommendations on stocks. However, much of the material covered in the course is also relevant to the corporate finance analyst for evaluating acquisitions, restructurings and other investments, and for calculating the value generated by strategic scenarios. |
| Course Content: | Project evaluation and company valuation, the methods for both are discussed, highlighting their strengths and weaknesses as available tools for decision making in different contexts. |
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The students who have succeeded in this course;
1) Develop the concept of valuation with basic financial statement analysis, analyze companies and industries 2) Gains projection skills for the future of companies 3) Feels competent to prepare investment analysis for companies |
| Week | Subject | Related Preparation |
| 1) | Financial Statements – Their Meanings & Analysis | |
| 2) | Financial Statements – Their Meanings & Analysis (cont’d) | |
| 3) | Introduction to Valuation | |
| 4) | Valuation in a Nutshell | |
| 5) | Relative Valuation | |
| 6) | Discounted Cash Flow Analysis (DCF Analysis) | |
| 7) | The Capital Asset Pricing Model (CAPM) | |
| 8) | Weighted Average Cost of Capital (wacc) | |
| 9) | Firm Value vs Equity Value | |
| 10) | National Holiday- 23 April National Sovereignty and Children's Day | |
| 11) | Estimating the Cash Flows | |
| 12) | Closure in Valuation | |
| 13) | National Holiday -12-15 May Feast of Ramadan | |
| 14) | National Holiday -19 May Commemoration of Atatürk, and Youth and Sports Day | |
| 15) | Final |
| Course Notes / Textbooks: | Ders Notları / Course Notes |
| References: | Investment Valuation: Tools and Techniques for Determining the Value of any Asset, by Aswath Damadoran, Publisher: Wiley Investment Philosophies: Successful Strategies and the Investors Who Made Them Work, Damodaran, Publisher: Wiley Financial Valuation: Applications and Models, by Hitchner, Wiley Corporate Valuation: Measuring the Value of Companies in Turbulent Times, by Massari and Gianfrate, Publisher: Wiley |
| Course Learning Outcomes | 1 |
2 |
3 |
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|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Program Outcomes | |||||||||||||
| 1) They have a broad and interdisciplinary perspective on economics using other social sciences and mathematics. | |||||||||||||
| 2) They have knowledge and skill about different functions and interactions of economy. | |||||||||||||
| 3) They use different theoretical approaches to comprehend and solve various economic problems. | |||||||||||||
| 4) They are aware of the needs of society and use their knowledge of economics to meet these needs. | |||||||||||||
| 5) They have in-depth knowledge on the current issues of the Turkish economy and the global economy. | |||||||||||||
| 6) They have in-depth knowledge on the history of the Turkish economy and basic level knowledge on the history of the global economy. | |||||||||||||
| 7) Using various statistical techniques and numerical methods, they establish correct economic models and make analyzes by using statistical programs effectively. | |||||||||||||
| 8) They use a foreign language at least at the B1 General Level in terms of European Language Portfolio criteria according to the level of education. | |||||||||||||
| 9) They improve their skills of teamwork, negotiation, leadership and entrepreneurship. | |||||||||||||
| 10) They have universal ethical values, social responsibility awareness and adequate knowledge of business law. | |||||||||||||
| 11) Being able to develop positive attitudes with regards to lifelong learning, they identify their individual learning needs and carry out studies to fulfil them. | |||||||||||||
| 12) They express their ideas and solution proposals concerning their field both written and orally, and present and publish them on both national and international platforms. | |||||||||||||
| 13) They use information and communication technologies together with a computer software required by the field at least at advanced level of European Computer Driving License . | |||||||||||||
| No Effect | 1 Lowest | 2 Average | 3 Highest |
| Program Outcomes | Level of Contribution | |
| 1) | They have a broad and interdisciplinary perspective on economics using other social sciences and mathematics. | |
| 2) | They have knowledge and skill about different functions and interactions of economy. | |
| 3) | They use different theoretical approaches to comprehend and solve various economic problems. | |
| 4) | They are aware of the needs of society and use their knowledge of economics to meet these needs. | |
| 5) | They have in-depth knowledge on the current issues of the Turkish economy and the global economy. | |
| 6) | They have in-depth knowledge on the history of the Turkish economy and basic level knowledge on the history of the global economy. | |
| 7) | Using various statistical techniques and numerical methods, they establish correct economic models and make analyzes by using statistical programs effectively. | |
| 8) | They use a foreign language at least at the B1 General Level in terms of European Language Portfolio criteria according to the level of education. | |
| 9) | They improve their skills of teamwork, negotiation, leadership and entrepreneurship. | |
| 10) | They have universal ethical values, social responsibility awareness and adequate knowledge of business law. | |
| 11) | Being able to develop positive attitudes with regards to lifelong learning, they identify their individual learning needs and carry out studies to fulfil them. | |
| 12) | They express their ideas and solution proposals concerning their field both written and orally, and present and publish them on both national and international platforms. | |
| 13) | They use information and communication technologies together with a computer software required by the field at least at advanced level of European Computer Driving License . |
| Semester Requirements | Number of Activities | Level of Contribution |
| Attendance | 14 | % 10 |
| Quizzes | 4 | % 20 |
| Midterms | 1 | % 30 |
| Final | 1 | % 40 |
| total | % 100 | |
| PERCENTAGE OF SEMESTER WORK | % 60 | |
| PERCENTAGE OF FINAL WORK | % 40 | |
| total | % 100 | |
| Activities | Number of Activities | Preparation for the Activity | Spent for the Activity Itself | Completing the Activity Requirements | Workload | ||
| Course Hours | 13 | 0 | 4 | 52 | |||
| Study Hours Out of Class | 13 | 0 | 1 | 13 | |||
| Homework Assignments | 2 | 0 | 2 | 4 | |||
| Quizzes | 4 | 4 | 16 | ||||
| Midterms | 1 | 12 | 2 | 14 | |||
| Final | 1 | 24 | 2 | 26 | |||
| Total Workload | 125 | ||||||