PGP Elective Form 2012-2013 Page 1 of 4

Course offered byFinance................. Elective to be offered in the AY 2012-2013 To : The Chair PGP Offered/Coordinated by (Name of the Faculty)

area

From :

Name of the Course: Business Analysis and Valuation (Please restrict the title of the course to 50 characters) Term : V ___10_______ ______0_____ Credit Point : ___2_______ Duration of session: 75 minutes No of sections: 1 / 2 / 3 / 4

Total no. of Sessions : No. of Audit Permitted:

Procedure for selecting participants if sections are less than 4: Please specify if there is any prerequisite for the course? Yes / No 1. Name/s of Instructor(s): 1. Deepak Kapur Profile of Instructor(s) (in case of outsider) Deepak Kapur, 35, is the proprietor and principal investment manager of Tapaks Capital Management, an investment management firm based out of Chennai, India. He completed his B.E. (Hons) Chemical and M.Sc. (Hons) Biological Sciences from BITS Pilani in 2000. He is a graduate from the 2002 batch of IIM Indore where he pursued his PGDM and was awarded the Chairmans Gold Medal as well as the GE Scholarship for scholastic excellence and the Eicher Gold Medal for all round performance. His prime areas of interest are business history, asset valuation, financial markets, human behavior, investments and entrepreneurship.

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Post Graduate Diploma in Management Academic Year 2012-13 Course Title Credits : : Business Analysis and Valuation 2 Area: Finance E-mail tapak7@yahoo.com Term: _______V

Course Instructors: Instructor 1 Deepak Kapur

Objectives: The principle objectives of the course are: 1. To demonstrate the link between valuation and the competitive positioning of a business 2. To discuss the accrual accounting and cash flow based discounting models of valuation and establish their equivalence. 3. To discuss the uses and misuses of multiple based approaches in valuation as well as learn to analyze and apply multiples in valuation 4. To demonstrate the application of the above theoretical frameworks using market pricing of stocks 5. To discuss issues specific to valuation in case of M&A 6. Appreciate the limitations in valuing a business. Pedagogy: The course relies largely on lecture presentations and a mix of examples taken from amongst the companies listed on the Indian Stock Exchanges. Text : None. Reading Material: 1. BG: Value Investing From Graham to Buffet and Beyond by Bruce C.N. Greenwald, Judd Kahn, et. al, - Chapter 3,4,5,6 (from pages 31 to 106 ) from the book are given as photocopied reading material. 2. MK: Valuation: Measuring and Managing Value of Companies, McKinsey, 4th edition by Tim Koller, Marc Goedhart - Chapters 3,5, Appendix A, Appendix B, Chapters 7,8,9, (pages 47-68, 693-700, 101-132, 159-290) from the book are given as photocopied reading material. 3. AD: Damodaran on Valuation by Aswath Damodaran, 2nd edition (Chapters 2,7,8,9,13,15) refer online version of book at http://pages.stern.nyu.edu/~adamodar/ 4. PV: Primer on Time Value of Money - loaded on server as soft copy 5. WB: Superinvestors of Graham and Doddsville by Warren Buffet loaded on server as soft copy 6. Valuing Companies by Cash Flow Discounting Ten Methods and Nine Theories - Soft Copy 7. Changes in Schedule VI of Companys Act affecting reporting of B/S and P&L Soft Copy

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Evaluation Group Components (less than or equal to 40%): Component Assignments / Presentations Total Group Components Individual Components (at least equal to 60%): Component Quizzes / Class Work Term Exam Total Individual Components Session-wise plan:

% age 40 40 % age 30 30 60

Session No 1

Topic/s

Readings / Case Study

Financial Statement Analysis for Valuation to Business Lecture Slides Primer on Time Value of Money (PV) Changes in Schedule VI of Companys Act affecting reporting of B/S and P&L Soft Copy Reclassifying Financials for Case Study: Infosys and MRF Valuation:Understanding True RoIC and RoE; Separating Operating and Non-Operating Items; Reclassifying Operating, Financial and Investing Activities when required Link Between Competitive Advantage and Valuation Understanding Competitive Case Study: Infosys, Page Industries, Advantage in the context of MRF, Indian Hotels and Hindalco Valuation; Link Between Valuation in Principle, Valuation in Competitive Advantage and Practice Chapter 3 (BG) Valuation Introduction Valuation Reproduction Cost Basis of Asset Valuation Valuing the Assets: From Book Value to Reproduction Costs Chapter 4 (BG) Earnings Power Value: Assets Plus Earning Power Valuation Franchise Chapter 5,6 (BG) Lecture Slides Discounted Valuation Models Discounted Valuation Fundamental Principles of Value Models Creation Chapter 3 (MK) Page 3 of 4

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Frameworks for Valuation Chapter 5 (MK), Appendix A&B (MK) Valuing Companies by Cash Flow Discounting Ten Methods and Nine Theories - soft copy Analyzing Historical Analyzing Historical Performance: Performance; Forecasting Chapter 7 (MK) Cash Flows and Terminal Forecasting Performance: Chapter 8 Value in Discounted (MK) Valuation Models Estimating Continuing Value: Chapter 9 (MK) Lecture Slides Discount Rate, Relative Valuation and Miscellaneous Topics Discount Rates Lecture Slides Super-investors of Graham and Doddsville (WB) Estimating Discount Rates Chapter 2 of AD Relative Valuation Equity Chapters 7,8,9 of AD Multiples and Value Lecture Slides Multiples Dividends and Value; In class Study of market price of Debt and Value FMCG and similar firms Brand Valuation In class study of over leveraged firms like Aban Offshore and Suzlon Example of Brand Valuation - Colgate Considerations in case of Chapters 13,15 of AD M&A and Private Company Lecture Slides Valuation Value of Synergy and Value of Control Signature of Course Instructor: ____________ Name of the Course Instructor: ___________________________ Approval From The Area

Date:

Date:

Signature of Area Chair: Name of the Area Chair: ____________________________

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