Corporate Valuation 2

2 credits · Owen Graduate School of Management

Corporate Valuation 2 extends the discounted cash flow framework from Corporate Valuation 1 to the judgment-heavy decisions that real valuation work demands. Students learn to formulate a defensible investment thesis through rigorous research and translate it into quantified model inputs, working under the messy conditions that practitioners actually face: free cash flow built from adjusted financials, a defensible cost of capital, the treatment of intangible investments, realistic terminal value, and the effective communication of uncertainty. Beyond building valuations, students develop the judgment to evaluate, audit, and correct them, recognizing which adjustments matter, when they are done wrong, and what is missing. The course applies this framework across transaction contexts, developing both the ability to construct a valuation in a leveraged buyout setting and the ability to diagnose and correct a flawed valuation in a merger setting. Throughout, students use generative AI to accelerate modeling, research, and analysis, with an emphasis on directing and verifying AI output rather than trusting it. Pre-requisites: MGT 6331 and MGT 6431. [2]