Applied Econ & Finance
3.0
creditsAverage Course Rating
This course focuses on company valuations, using the proprietary Hanke-Guttridge Discounted Free 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. Work products are expected to be of publishable quality.