• The Open University

Corporate Finance: Valuing Shares

Learn about the methods that are used to value shares and companies, assessing the advantages and disadvantages of each method.

Investment appraisal

  • Duration

    4 weeks

  • Weekly study

    14 hours
Overview
Requirements
Educators

This course will explore three key ways to value a company’s shares

In this course, you will review a range of approaches to valuation and consider their use in different contexts. This includes: estimating asset values from the balance sheet; market multiples that use share prices to establish comparative benchmarks for value; and discounted cash flow techniques that forecast data to estimate present value.

What topics will you cover?

  • Valuations based on assets
  • Valuations based on multiples, including price earnings and EV/EBITDA
  • Valuations based on discounted cash flow methods
  • The advantages and disadvantages of these methods as well as valuations generally

Learning on this course

On every step of the course you can meet other learners, share your ideas and join in with active discussions in the comments.

Who is the course for?

This course is aimed at everyone who works in areas such as investment banking, portfolio management, corporate finance, treasury, law and consultancy.

What software or tools do you need?

A computing device with a browser and broadband internet access is required for this module. Any modern browser will be suitable for most computer activities. Functionality may be limited on mobile devices.

Any additional software will be provided or is generally freely available. However, some activities may have more specific requirements. For this reason, you will need to be able to install and run additional software on a device that meets the requirements below.

A desktop or laptop computer with either:

  • Windows 7 or higher
  • Mac OS X 10.7 or higher.

The screen of the device must have a resolution of at least 1024 pixels horizontally and 768 pixels vertically.

To join in the spoken conversation in our online rooms we recommend a headset (headphones or earphones with an integrated microphone).

Who will you learn with?

Henry Lahr

I am a Senior Lecturer in Finance at the Open University and lead its MSc in Finance. My research is on the financing of innovative businesses, venture capital and frictions in financial markets.

Kevin Amor

I am a Chartered Accountant who, before moving into teaching, worked in the real estate investment and development sector. I have also been a director on a number of investment funds.

Who developed the course?

The Open University

As the UK’s largest university, The Open University (OU) supports thousands of students to achieve their goals and ambitions via supported distance learning, helping to fit learning around professional and personal life commitments.

  • Established

    1969

  • Location

    Milton Keynes, UK

  • World ranking

    Top 510Source: Times Higher Education World University Rankings 2020

Learning on FutureLearn

Your learning, your rules

  • Courses are split into weeks, activities, and steps to help you keep track of your learning
  • Learn through a mix of bite-sized videos, long- and short-form articles, audio, and practical activities
  • Stay motivated by using the Progress page to keep track of your step completion and assessment scores

Join a global classroom

  • Experience the power of social learning, and get inspired by an international network of learners
  • Share ideas with your peers and course educators on every step of the course
  • Join the conversation by reading, @ing, liking, bookmarking, and replying to comments from others

Map your progress

  • As you work through the course, use notifications and the Progress page to guide your learning
  • Whenever you’re ready, mark each step as complete, you’re in control

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