How does a US firm evaluate an investment in a Dutch firm, or how does it evaluate an investment in a project it undertakes itself in France? Which risks occur in an international investment setting, and how are these varying risks across different markets addressed? As firms become increasingly multinational in their operations, addressing these questions is critical in evaluating investments that cross the firm’s domestic borders.

This course starts with a discussion of basic investment concepts and general principles of equity valuation, with a deep-dive into understanding the business, forecasting performance, determining cost of capital and performing a valuation selecting the appropriate valuation method. In doing so, it addresses sources of risk in an international setting, such as market risk, currency risk or political risk. This course concludes with a hands-on valuation utilising common financial modelling techniques, and a guest lecture on practical insights into equity valuation.

At the end of the course, you will be able to:

• apply and evaluate content related to internatinoal equity valuation.
• identify sources of risk across markets in an international investment setting.
• assess and analyse investments in an international context.
• understand how to develop a financial model for valuation.

This course is held in person with mandatory physical attendance of a minimum of 80% of total course hours, whereby sessions 1, 3 and 5 are strictly to be attended. Failure to do so will result in disqualification from the course.

• Lectures
• In-class exercises
• In-class discussions
• Case study
• Guest lecture

Your grade is composed of:

• 12% in-class participation
• 38% case study
• 50% final exam

You must have completed IB Foundations (course I) and IB Applications (course II). Previous knowledge in finance is helpful but not necessary.

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