Applied Economics & Finance

3 Credits.

This course focuses on company valuations, using a Probabilistic Discounted Cash Flow Model. Students use the model and primary data from financial statements filed with the Securities and Exchange Commission to calculate the value of publically-traded companies. Using Monte Carlo simulations, students also generate forecast scenarios, project likely share-price ranges and assess potential gains/losses. Stress is placed on using these simulations to diagnose the subjective market expectations contained in current objective market prices, and the robustness of these expectations. During the weekly seminar, students company valuations are reviewed and critiqued. A heavy emphasis is placed on research and writing. Exceptional work may be suitable for publication through the Johns Hopkins Institute for Applied Economics, Global Health, and the Study of Business Enterprise. Advanced excel programming skills are required and students are expected to be pre-screened for research at the Library of Congress in Washington, D.C.. Bloomberg certification is a pre-requisite.