Master of Management Studies (M.M.S) Corporate Valuation Syllabus - Mumbai University 2026

Course objectives

• 1 To introduce the concept, objectives, and importance of business valuation in corporate finance decisions.
• 2 To familiarize students with different valuation methodologies, including asset, income, and market-based approaches.
• 3 To enable practical application of dividend discount models and discounted cash flow models in equity valuation.
• 4 To enhance analytical skills to assess valuations in special scenarios such as brand valuation, start-ups, and distressed firms.
• 5 To develop the ability to create and present professional corporate valuation reports and analyses.

Course outcomes

• CO1: Describe the fundamental concepts of value and valuation, including the objectives, scope, and key principles that guide business valuation practices.
• CO2: Explain and apply basic valuation techniques, including the selection of appropriate valuation approaches such as fair market value and relevant adjustments.
• CO3: Demonstrate the use of Dividend Discount Models (DDM) such as the zero growth, constant growth, and multi-stage models in equity valuation.
• CO4: Analyze corporate value using income and asset-based approaches, including DCF models, adjusted present value models, and economic profit models, while assessing their applicability and limitations.
• CO5: Evaluate valuation in special contexts, such as brand valuation, startup valuation, and valuation of distressed firms, with appropriate method selection.
• CO6: Develop and deliver professional valuation reports and presentations, synthesizing theoretical and practical insights acquired through assignments.

Unit 1 CO1 · 2 hours

Valuation Basics: What is Value? An understanding of ‘Value’, The nature and scope of Valuation, Objectives of Valuation, Importance of Business Valuation, Misconceptions about Valuation. Principles and Techniques of Valuation: Elements of Business Valuation, Conceptual Overview, Valuation Approaches, Choice of Approach, Fair Market Value, Adjustments for Valuation Purposes

Unit 2 CO2, CO3 · 6 hours

Equity Valuation: Dividend Discount Models: Zero growth model, Constant growth model Two stage model, H model, Three stage model

Unit 3 CO4 · 10 hours

Corporate Valuation (Asset and Income Approach) 3.1 Asset Approach Determining Book Value, Adjusting Book Value, Factors in Asset Valuation 3.2 Income Approach: Analysing historical performance- Estimating the cost of Capital- Forecasting Performance- Estimating the continuing value-Calculating and interpreting the results-Other DCF models: Equity DCF Model: Dividend discount model, free cash flow to Equity (FCFE) model-Adjusted present value model-Economic profit model-Applicability and Limitations of DCF analysis

Unit 3 CO4 · 4 hours

Relative Valuation: Definition and description of Relative Valuation, Steps in Relative Valuation, Market Value, Market Multiples, Wide application of Relative Valuation Advantages and Limitations of Relative Valuation, when to use Relative Valuation, Relative valuation approaches, Trading multiples and their determinants, Transaction multiples and takeover premiums

Unit 4 CO5 · 4 hours

Special cases of valuation - a. Brand valuation b. Valuation of start-ups c. Valuation of distressed firms

Unit 5 CO6 · 4 hours

Assignment and Presentation

Textbooks

• 1 Corporate Valuation & Value Creation, Prasanna Chandra. McGraw-Hill Education
• 2 Damodaran on Valuation: Security Analysis for Investment and Corporate Finance" – Aswath Damodaran, Wiley

Reference Books

• 1 Financial Times Guide to Corporate Valuation – David Frykman & Jakob Tolleryd, FT publishing
• 2 Corporate Valuation: An Easy Guide to Measuring Value- Jakob Tolleryd, David Frykman, Prentice Hall.
• 3 Equity Asset Valuation: Jerald E. Pinto, Elaine Henry, Thomas R. Robinson, John D. Stowe. CFA Institute