Proficiency with first-year algebra; some knowledge of investment strategy or corporate finance is strongly recommended.
“I learned some models for how to calculate the value of a firm, the risk, and the return of the firm.” — JiaoHao Wu
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 challenging 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 required to bring laptops for this class, and, as this is a quantitative course, should be comfortable with math (see prerequisite above) and prepared for a challenging experience.
Jeannice Tse holds an MBA with concentrations in finance, economics and international business from the University of Chicago Booth School of Business and a Bachelor of Accountancy from Nanyang Technological University in Singapore. She is a former consultant with McKinsey and Co in their Corporate Finance practice. During her time there, she performed valuations and drove benchmarking analyses for U.S. and international clients. Jeannice has worked in financial institutions for much of her career, including as an investment banker and foreign exchange trader. She is currently a Senior Director of Strategic Initiatives at The New School, focusing her efforts on identifying and developing strategic opportunities for the university.