COURSE SYLLABUS

FIRM AND ASSET VALUATION (TCH455E)

Course name: FIRM AND ASSET VALUATION

Course Code: TCH455E
Faculty/School: Banking and Finance
Department: Corporate Finance
Credit hours: 3
Prerequisite(s): Principles of Finance

1. INSTRUCTOR(s) INFORMATION

No. Instructors’ name Email Cellphone Office

Assoc. Prof. Dr. Nguyen Viet vd.nguyen@ftu.edu.vn 0913078910 Block B,
1
Dung Level 2
van.duong@ftu.edu.vn 0913362995 Block B,
2 Dr. Duong Thi Hong Van
Level 2
quyendt@ftu.edu.vn 0982996288 Block B,
3 Dr. Nguyen Do Quyen
Level 2
0902116355 Block B,
4 MSc. Nguyen Thi Thu Huyen huyenntt@ftu.edu.vn
Level 2

2. COURSE DESCRIPTION
This course provides knowledge about firm and asset valuations. Besides, students will be
equipped with analysis and valuation skills to valuate different types of firms and firm assets.
Once completing this course, students will be able to understand different approaches to firm
and asset valuation and apply different valuation methods and models in valuing various
types of firms (public, private firms, start-up firms, financial service firms...) and firm assets
(tangible, intangible assets, real estates, franchise, trademarks, copyrights, licenses...).

3. COURSE LEARNING OBJECTIVES

On completion of this course, the students should be able to:
Knowledge
CLO1. Understand different approaches to firm and asset valuation
CLO2. Understand accounting principles underlying asset measurement and valuation
CLO3. Understand different valuation methods and models
CLO4. Apply different valuation methods to valuate assets and firms
Skills
CLO5. Measure the value of different corporate assets
CLO6. Use different valuation methods and models in firm valuation
CLO7. Analyze different types of firms and assets and classify which methods are
appropriate in valuing firms and assets
Capacity of Autonomy and Responsibility
CLO8 Personal autonomy (persistence, flexibility, confidence, hard work, enthusiasm,
passion, self-study, integrity, criticism, creativity...);
CLO9. Professional ethics (professional behavior, independence).

4. COURSE CONTENT AND SCHEDULE

4.1. Course content

1
 Time Allocation
Hour(s) on the class Exercise,
No. Content
Practice, Assignment, Self-study
Lecture
Seminar Field trip
Chapter 1. Introduction to 4.5
1. 2 1 1.5
valuation
Chapter 2: Approaches to 4.5
2. 2 1 1.5
valuation
Chapter 2: Approaches to 4.5
3. 2 1 1.5
valuation (cont’d)
Chapter 3: Asset measurement and 4.5
4. 2 1 1.5
valuation
Chapter 3: Asset measurement and 4.5
5. 2 1 1.5
valuation (cont’d)
Chapter 4: Dividend discount 4.5
6. 2 1 1.5
models
Chapter 5: Free cash flow to 4.5
7. 2 1 1.5
equity models
Chapter 6: Cost of capital and 4.5
8. adjusted present value (APV) 2 1 1.5
approaches
9. Chapter 7: Earnings multiples 2 1 1.5 4.5
Chapter 8: Book value multiples 4.5
10. 2 1 1.5
Mid-term test
Chapter 9: Valuing financial 4.5
11. 2 1 1.5
service firms
Chapter 10: Valuing firms with 4.5
12. 2 1 1.5
negative earnings
Chapter 11: Valuing young and 4.5
13. 2 1 1.5
start-up firms
14. Chapter 12: Valuing private firms 2 1 1.5 4.5
15. Chapter 13: Valuing other assets 2 1 1.5 4.5
Total 30 15 22.5 67.5

4.2. Schedule of Lectures

Provides timeline of course progress in terms of content, instruction, and assessment

Lecture Title (Students’ preparation) Assessment

Required Pre-reading
materials
Chapter 1. Introduction to Chapters 1 (Textbook 5.1)
valuation
1.1. Introduction
1 1.2. The role of valuation
1.3. Valuation in acquisition
analysis
1.4 Valuation in corporate

2
 finance
Chapter 2: Approaches to Chapter 2 (Text book 5.1)
valuation
2.1 Discounted cash flow
2
valuation
2.2 Relative valuation
2.3. Multiples valuation
Chapter 2: Approaches to Chapter 2 (Text book 5.1)
valuation (cont’d)
3
2.4 Contingent claim valuation
2.5 Option pricing models
Chapter 3: Asset Chapter 3 (Text book 5.1) Class quiz
measurement and valuation
3.1. The basic accounting
4 statements
3.2 Accounting principles
underlying asset measurement
3.3 Measuring asset value
Chapter 3: Asset Chapters 3 (Textbook 5.1)
measurement and valuation
(cont’d)
3.4 Measuring the value of
5 liabilities
3.5 Measuring the value of equity
3.6 Measuring earnings and
profitability
3.7 Measuring risk
Chapter 4: Dividend discount Chapters 13 (Textbook 5.1) Class quiz
models
4.1 The general model
4.2 The Gordon growth model
6 4.3 Two-stage dividend discount
model
4.4 Three-stage dividend
discount model

Chapter 5: Free cash flow to Chapters 14 (Textbook 5.1)

equity models
5.1. Free cashflows to equity
7 5.2 FCFF and other cashflow
measures
5.3 Firm valuation: the cost of
capital approach
Chapter 6: Cost of capital and Chapters 15 (Textbook 5.1)
8 adjusted present value (APV)
approaches

3
 6.1 The free cashflows to the
firm
6.2 Accounting rate of return
6.3 Ranking mutually exclusive
projects
6.4 Investment evaluation and
capital rationing
Chapter 7: Earnings multiples Chapters 18 (Textbook 5.1)
7.1 Price earnings (PE) ratio
7.2 PE ratios and risk
9 7.3 The PEG ratio
7.4 Enterprise value to EBITDA
multiples
Chapter 8: Book value Chapters 19 (Textbook 5.1)
multiples
8.1 Definition
10 8.2 Price to book equity
calculation
8.3 Application
Mid-term test
Chapter 9: Valuing financial Chapters 21 (Textbook 5.1) Class quiz
service firms
9.1 Categories of financial
service firms
9.2 Financing mix of financial
service firms
11
9.3 General framework for
valuation
9.4 Asset based valuation
9.5 Relative valuation
9.6 Issues in valuing financial
service firms
Chapter 10: Valuing firms Chapters 22 (Textbook 5.1)
with negative earnings
10.1 Negative earnings:
consequences and causes
12
10.2 Valuing negative earnings
firms
10.3 Issues in valuing firms with
negative earnings
Chapter 11: Valuing young and Chapter 23 (Textbook 5.1)
start-up firms
11.1 Information constraints
13
11.2 The life cycle perspective
11.3 Venture capital valuation
11.4 A general framework for

4
 analysis
Chapter 12: Valuing private Chapter 24 (Textbook 5.1)
firms
12.1 Features of private firms
14 12.2 Estimating valuation inputs
at private firms
12.3 Valuation motives and value
estimates
Chapter 13: Valuing other Chapter 26, 27 (Textbook 5.1)
assets
13.1. Valuing real estate
13.2. Valuing franchise
13.3 Valuing businesses with a
15
personal component
13.4 Valuing trademarks,
copyrights and licenses
13.5 Valuing non cash flow
producing assets

4.3. Contribution to Course Learning Outcomes

CLO
Topic Content Knowledge Skills Autonomy
1 2 3 4 5 6 7 8 9
Chapter 1. Introduction to 1 1 1
1.
valuation

Chapter 2: Approaches to 1 1 1 1 1
2.
valuation

Chapter 2: Approaches to
3. 1 1 1 1 1
valuation (cont’d)

Chapter 3: Asset 1 1 1 1 1
4.
measurement and valuation
Chapter 3: Asset
5. measurement and valuation 1 1 1 1 1
(cont’d)
Chapter 4: Dividend 1 1 1 1 1 1
6.
discount models
Chapter 5: Free cash flow 1 1 1 1 1 1
7.
to equity models
Chapter 6: Cost of capital
8. and adjusted present value 1 1 1 1 1 1
(APV) approaches

5
 Chapter 7: Earnings 1 1 1 1 1 1
9.
multiples
Chapter 8: Book value
10. multiples 1 1 1 1 1 1
Mid-term test
Chapter 9: Valuing financial 1 1 1 1 1
11.
service firms

Chapter 10: Valuing firms 1 1 1 1 1 1

12.
with negative earnings
Chapter 11: Valuing young
13. 1 1 1 1 1 1
and start-up firms

Chapter 12: Valuing private 1 1 1 1 1 1

14.
firms

Chapter 13: Valuing other 1 1 1 1 1 1

15.
assets

5. READING MATERIALS
5.1. Text book
Damodaran A. (2012). Investment valuation: tools and techniques for determining the value
of any asset. Willey Finance, 3E.
5.2. Optional Readings
Ross S., Westerfield R. and Jordan J. (2012) Corporate Finance. McGraw-Hill Education
10E.
6. COURSE POLICY:
The Course policy is under the current training regulations.
7. COURSE ASSESSMENT
7.1. Type of Assessement
* Formative assessment (10%)
Class quiz
* Summative assessment (90%)

No. Assessment Rate

1 Mid-term exam 30%
2 Final exam 60%

7.2. Assessment Criteria

* Formative assessment:
(1) Class attendance:
- Attendance checking: minimum of 5 times
* Summative assessment:
(2) Extra credit (or bonus points for study encouragement):
- Given when students actively participate during lectures
- Students give their answers to the lecturer’s questions straight to the point

6
- 3 times: 1 bonus point for the mid-term exam, 6 times: 1 bonus point for the final exam, the
total bonus points not exceeding 2 points for mid-term exam or 1 point for final exam scores.
(3) Mid-term exam:
- Exam format: written exam in 60 minutes
- Content: issues have been studied
- The written exam can be in the form of 20 multiple-choice questions or 02 essay questions
(in which, 01 theory-based question and 01 practical question)
- Students are not allowed to use any material during the exam.
- Evaluation criteria:
+ For multiple-choice questions: students answer exactly 20 multiple-choice questions: 10
points
+ For essay questions: the maximum points for each question are 5 points, specifically:
Understand the issue 1 point
Solving the issue 1 point
Analyze the issue 1 point
Giving example 1 point
Expression 1 point
Total 5 points/ essay question

(4) Final exam

- Exam format: written exam in 60 minutes
- Content: issues have been studied
- The written exam consists of 02 parts:
+ Part 1 contains 40 multiple choice questions covering all chapters
+ Part 2 consists of 02 essay questions which require the application of knowledge in
practice.
- Students are not allowed to use any material during the exam.
- Evaluation criteria:
+ For essay questions:
Concise answers to 2 essay questions: 4 points
+ For multiple-choice questions:
Correct answers to multiple choice questions: 6 points
Total: 10 points

DEAN OF FACULTY HEAD OF DEPARTMENT