Beruflich Dokumente
Kultur Dokumente
1. Industry overview
2. SWOT analysis of the company
3. Financial statement analysis (ratios, Dupont-type analysis and their trends) over the
past 3-5 years
4. Firm and equity valuation using one or more of the methods discussed in class: DDM,
DCF and Residual Income. You can use analysts' consensus forecasts for coming up
with the value. In case you have used only one valuation method, you have to justify
the choice: in case you have used more than one, suggest which is more appropriate
and justify. Also, show how you arrived at the cost of capital you have used. You may
want to use the Fama French factors on value (HML), size (SMB) as well as
momentum (MOM). The data is available at:
http://mba.tuck.dartmouth.edu/pages/faculty/ken.french/data_library.html.
5. Sensitivity analysis: provide a range of equity values for the companies based on
variation in one or more of the valuation parameters. Discuss the results.
6. Accounting and governance flags: separately discuss accounting quality and any
concerns about the corporate governance of the company.
7. Based on the analysis above, you should have a buy/hold/sell recommendation.
However, I am also looking for how well you have understood the firm's past
performance and what is expected in the future. So try to have some compelling
arguments to support your conclusion - both when you present it to the class as well
as in your report. Comparing and contrasting the two companies is required.
Other administrative details
Course materials will be posted on moodle. Graded exams will be available at the
PGP office for student review.
Students are expected to come to every class. Proxy attendance will not be
tolerated under any circumstances.
Emails must include a short description of the issue in the subject area.
All students are expected to behave with honesty and integrity. Do not plagiarize
and cheat in either projects or exam.
Class Schedule
Clas
s
1
2
3
4
5
6
Topic
Introduction
Intrinsic Valuation
-1
Intrinsic Valuation
-2
Intrinsic Valuation
-3
Financial
Statements -1
Financial
Statements - 2
Description
Present value
concepts
Dividend discount
model
Free cash flow model
Abnormal earnings
model
Statements and line
items
MD&A, Notes
Companies
Source
Verizon
Anheuser-Busch and
InBev
Self
Sandretto
Self
ConEd
Apple
Self
Self/
Sandretto
Roche
Self
Krispy Kreme
Restaurant Industry
Ratios
HBS
Quiz 1
7
Ratio Analysis - 1
Dupont breakdown
Ratio Analysis - 2
Reformulated ratios
Parameters - 1
Cost of capital
Parameters - 2
Relative Valuation 1
Growth
10
11
Definitions
HBS
12
Relative Valuation 2
PE vs PB drivers
Self
Real options
MW Petro
HBS
M&A, LBO
Seagate
Quiz 2
15
Contingent
Valuation - 1
Contingent
Valuation -2
Special situations 1
16
Special situations 2
Negative earnings,
IPO
GM; UPS
HBS
Self/
Sandretto;
HBS
17
Forecasting
18
Quality
Simple vs Detailed
Accounting and
Governance
Barclays
Sandretto
19
Review
20
Presentation
Project presentation
13
14
Please note that the cases sourced from Sandretto are still being processed for
procurement. In the event these are not available, I will provide alternative companies
for discussion.
11.
Objective: This course has been designed to introduce students to the area of investment in financial assets. No
other segment of finance has been impacted more by the theories of finance as this one. The course is a
judicious blend of theory and practice. The latter will be brought in through exposure to various institutional
practices and also through discussion of contemporary cases. The students, in this course, will be equipped with
tools for determining investment objectives, combining individual assets into portfolios, managing the portfolio,
mitigating risks through derivatives and finally, measuring the portfolio performance. Students will have an
opportunity to put into practice some of the tools and also exploring original ideas in actually managing a
dummy portfolio.
Those who are interested in fund management in asset management companies or in financial institutions will
find this course useful. Also this will come in handy for those who aim for personal financial advising in an
institution or in individual capacity.
Recommended Textbook: Investments - Bodie, Kane, and Marcus, 9th edition McGraw Hill
Additional Material: Investment Analysis and Portfolio Management Reilly & Brown, 9th edition
(International Student Edition), Thompson South-Western.
Tentative lecture schedule is as follows.
Lecture #
Topics
Introduction to Investment Marketplace
1
Reading: Chapters 1,2,3,4
Portfolio Theory
2
Reading: Chapter 7
3
Portfolio Theory continued
Reading: Chapter 7
Asset Pricing Models
Reading: Chapter 8
Factor Models
Reading: Chapter 8
Case discussion: Dimensional Fund Advisors
Alternative Investments
Reading: Chapter 10
Technical Analysis
Reading: Chapter 27, Technical Analysis in the Indian Capital Market A survey
Sehgal & Gupta, Decision, vol 32, no. 1, 91-122.
International Diversification
Reading: Chapter 25
Tutorials I (On Portfolio Optimization) & Assignment I presentation
Bloomberg Exercises I
Passive Management & Theory of Active Portfolio Management
Readings: Chapter 27
Equity markets
Readings: Chapter 17,18,19
Fixed Income securities
Readings : Chapter 14,15,16
Derivatives in Portfolio Management
Reading: Chapter 20,21,22,23
Investment Management Process, Portfolio Allocation, Market timing and Sector Rotation
Portfolio Performance Measurement
Reading: Chapter 24
5
6
7
8
9
10
11
12
13
14
15
16
17
12.
Course Name
Term
Name of Course Coordinator
Name of the Instructor
Corporate Restructuring
PGP II, Term IV
Prof. Ashok Banerjee
Prof. Ashok Banerjee
Objectives
The objective of the course is to aware students about the various strategic ways to achieve
superior corporate performance. Many Indian companies have adopted maximising longterm shareholder value as the central corporate objective. Enhancing long-term shareholder
value involves managing costs, driving margins, managing capital structure, and inorganic
growth through acquisitions and divestiture. The course would start with cost management
issues- making students aware that cost consciousness is vital to sustain profitability. Then it
would discuss several value creating strategies- creating shareholder value to unlocking
shareholder value. Finally, we would study the linkage between employee performance and
corporate objective- how employees can be motivated to act as owners.
Session Plan:
Session
Description