Educational guide | ||||||||||||||||||||||||||||||||||||||||
IDENTIFYING DATA | 2017_18 | |||||||||||||||||||||||||||||||||||||||
Subject | ASSESSMENT OF FINANCIAL INSSTITUTIONS | Code | 00509038 | |||||||||||||||||||||||||||||||||||||
Study programme |
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Descriptors | Credit. | Type | Year | Period | ||||||||||||||||||||||||||||||||||||
6 | Optional | Fourth | Second |
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Language |
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Prerequisites | ||||||||||||||||||||||||||||||||||||||||
Department | DIREC.Y ECONOMIA DE LA EMPRESA |
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Coordinador |
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mttasf@unileon.es fjcasg@unileon.es |
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Lecturers |
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Web | http:// | |||||||||||||||||||||||||||||||||||||||
General description | Macroeconomic and financial industry analyses. Selection and application of valuation methods to financial firms. Business valuation report. | |||||||||||||||||||||||||||||||||||||||
Tribunales de Revisión |
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Competencias |
Code | |
A5341 | |
A5345 | |
A5352 | |
A5353 | |
A5355 | |
A5362 | |
A5476 | |
A5480 | |
A5501 | |
A5537 | |
A5543 | |
A5565 | |
A5572 | |
A5585 | |
A5611 | |
A5649 | |
A5663 | |
B698 | |
B701 | |
B702 | |
B703 | |
B704 | |
B705 | |
B706 | |
B708 | |
B709 | |
B710 | |
B711 | |
B713 | |
B714 | |
B715 | |
B717 | |
B719 | |
B721 | |
C2 | |
C3 | |
C4 |
Learning aims |
Competences | |||
Identify those macroeconomic factors that affect the value of an entity and reason the effect of their future evolution. | A5353 A5355 A5362 A5501 A5663 |
B701 B702 B706 B708 B709 B710 B711 B717 |
C2 C3 |
Analyze the effect of the cycles in the financial industry over the expected results of the financial firms. | A5353 A5572 |
B701 B702 B704 B705 B706 B708 B709 B710 B713 B714 B717 |
C2 C3 |
Identify (in available sources) those internal and external factors of financial firms (banking, investment, insurance) that provide useful information for valuation. | A5353 A5355 A5480 A5537 A5543 A5565 A5663 |
B701 B702 B704 B705 B706 B708 B709 B710 B713 B714 |
C2 C3 |
Analyze growth and profitability of real financial firms, starting from their value drivers; Apply the DuPont pyramid to obtain the profitability drivers. | A5353 A5537 A5565 |
B701 B702 B704 B705 B706 B708 B709 B710 B713 B717 |
C2 C3 |
Estimate cash flows and other relevant variables for discount methods | A5345 A5353 A5355 A5501 A5611 |
B702 B704 B705 B706 B709 B714 B715 B717 |
C2 C3 |
Apply different valuation methods to real financial firms in order to obtain their value. | A5355 A5565 A5611 A5649 |
B704 B709 B713 B714 B715 B717 |
C2 C3 |
Select the most suitable valuation methods considering the objectives of valuation and the entity's features. | A5345 A5352 A5355 A5611 A5649 |
B702 B704 B705 B706 B711 B713 B715 |
C2 C3 |
Elaborate a valuation report for a real financial firm. | A5341 A5355 A5476 A5480 A5501 A5585 |
B698 B702 B703 B704 B705 B706 B709 B711 B715 B719 B721 |
C2 C3 C4 |
Contents |
Topic | Sub-topic |
First part: The macroeconomic analysis and the financial industry | 1. Globalization of the economic variables 2. Effect of the macroeconomic factors on valuation: interest rates, gross domestic product , employment, inflation, taxation, economic cycles. 3. Elements of the financial sector affecting valuation: regulation, sensibility to economic cycles, estructure and funcioning of different types of financial business (banca, inversión, seguros). |
Second part: Selection and application of valutaion methods | 4. Diagnóstico de la entidad financiera: fuentes de información; factores internos y externos. 5. Value drivers: profitability and growth; desaggregation of return on equity (DuPont pyramid). 6. Most used methods in valuation of financial firms: patrimonial methods, discount methods, relative valuation real options. |
Third part: The valuation report | 7. Estructure of a valuation report. 8. Interpretation of the obtained values. |
Planning |
Methodologies :: Tests | |||||||||
Class hours | Hours outside the classroom | Total hours | |||||||
Practicals using information and communication technologies (ICTs) in computer rooms | 20 | 30 | 50 | ||||||
Case study | 5 | 7.5 | 12.5 | ||||||
Tutorship of group | 10 | 15 | 25 | ||||||
Lecture | 20 | 30 | 50 | ||||||
3 | 4.5 | 7.5 | |||||||
Mixed tests | 2 | 3 | 5 | ||||||
(*)The information in the planning table is for guidance only and does not take into account the heterogeneity of the students. |
Methodologies |
Description | |
Practicals using information and communication technologies (ICTs) in computer rooms | Individual work to solve the assigned cases, applying theoretical and practical knowledge adquired during the classes. Reporting on students’ results. |
Case study | Gathering of real information to be applied in the cases. Selection and elaboration of that information. |
Tutorship of group | Tutorship oriented to the whole group in which the teacher help the students to Formulate, analyze, solve and debate a problem or exercise related to the topic of the subject. |
Lecture | Interactive lectures, to communicate core material and to deal with central concepts and models. |
Personalized attention |
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Assessment |
Description | Qualification | ||
Within the process of continuous evaluation, it will contribute with 9 points as a maximum. The teacher will propose some (voluntary) individual of group activities that the student will hand in as a written work. Marks obtained may substitute a part of the final exam, at the discretion of the teacher. | 9 points as a maximum | ||
Mixed tests | A final written exam will assess the assimilation of knowledge. It will contribute with 9 points as a maximum. It will be made up of theoretical questions (4 points) and practical exercises (5 points) similar to those made during the classes. | 9 points as a maximum | |
Others | Class attendance and participation will contribute with 1 point as a maximum to the final mark. To qualify participation, the teacher will take into account the documents received on the discussions, cases, exercises, etc. developed during the classes. The final mark may be increased by making tutored works (0.5 points as a maximum), up to the total 1 point as a maximum |
1 point as a maximum | |
Other comments and second call | |||
Sources of information |
Access to Recommended Bibliography in the Catalog ULE |
Basic | |
BODIE, Z., KANE, A., AND MARCUS, A.J. (2017): Essentials of Investments, McGraw-Hill. DAMODARAN, A. (2012): Investment Valuation: Tools and Techniques for Determining the Value of Any Asset, 3rd Edition, Wiley. Chapter 21. DAMODARAN, A. (2013): Valuing financial services firms. The Journal of Financial Perspectives 1(1), 1-16. FERNÁNDEZ, P. (2008): Valoración de empresas: Cómo medir y gestionar la creación de valor, Gestión 2000. GIANFRATE, G., MASSARI, M. AND ZANETTI, L. (2014): The valuation of financial companies. Tools and techniques to measure the value of banks, insurance companies and other financial institutions, Wiley. MATTEN, C. (2000): Managing bank capital: Capital allocation and performance measurement, John Wiley & Sons. MILLER, W.D. (1995): Commercial Bank Valuation, John Wiley & Sons. PALEPU, K.G., HEALY, P.M. y PEEK, E. (2016): Business Analysis & Valuation: IFRS Edition, 4th Ed., Thomson Learning. |
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Complementary | |
ANSÓN LAPEÑA, J.A. (1997): Valoración de empresas: Análisis de los métodos utilizados en la práctica, Instituto de Auditores - Censores Jurados de Cuentas de España. ARZAC, E.R. (2005): Valuation for Mergers, Buyouts, and Restructuring, John Wiley & Sons. ASOCIACIÓN ESPAÑOLA DE CONTABILIDAD Y ADMINISTRACIÓN DE EMPRESAS (AECA) (1989): Métodos prácticos de valoración de empresas, AECA. ASOCIACIÓN ESPAÑOLA DE CONTABILIDAD Y ADMINISTRACIÓN DE EMPRESAS (AECA) (1989): Principios de valoración de empresas: Propuesta de una metodología, AECA. ASOCIACIÓN ESPAÑOLA DE CONTABILIDAD Y ADMINISTRACIÓN DE EMPRESAS (AECA) (2006): Aplicabilidad del modelo de Ohlson para la valoración de acciones, AECA. ASOCIACIÓN ESPAÑOLA DE CONTABILIDAD Y ADMINISTRACIÓN DE EMPRESAS (AECA) (2010): El análisis contable del rendimiento y la valoración de empresas: actividades financieras y operativas, AECA. BROYLES, J. (2003): Financial Management and Real Options, John Wiley & Sons. COPELAND, T., KOLLER, T. y MURRIN, J. (2000): Valuation: Measuring and Managing the Value of Companies, John Wiley & Sons, New York (Traducción al castellano: (2007): Valoración de empresas: Medición y gestión del valor. Ediciones Deusto). EASTON, P.D., MCANALLY, M.L., FAIRFIELD, P.M., ZHANG, X.J. and HALSEY, R.F. (2014) Financial Statement Analysis and Valuation, 4th Ed., Cambridge Business. FERNÁNDEZ, P. (2008): 201 errores en la valoración de empresas. Diagnóstico para conocerlos y prevenirlos. Ediciones Deusto, Barcelona. JOHNSON, H.J. (1996): The Bank Valuation Handbook, Irwin. KOLLER, T., M. GOEDHART Y D. WESSELS (2015): Valuation: Measuring and Managing the Value of Companies, Wiley Finance. MARTÍNEZ CONESA, I., y GARCÍA MECA, E. (2005): Valoración de empresas cotizadas, AECA. ONTIVEROS, E. y VALERO, F. J. (1997): Introducción al Sistema Financiero español, Civitas. PEDRAJA GARCÍA, P. (1996): Contabilidad y análisis de balances en la Banca. Tomo I: Principios generales y contabilización de operaciones, Centro de Formación del Banco de España. PENMAN, S.H. (2011): Accounting for Value, Columbia Business School. PETTIT, J. (2011): Strategic Corporate Finance: Applications in valuation and Capital Structure, John Wiley & Sons. ROJO RAMÍREZ, A. (2007): Valoración de empresas y gestión basada en valor, Thomson. SCHROECK, G. (2002): Risk Management and Value Creation in Financial Institutions, Wiley. TASCÓN FERNÁNDEZ, M.T. (1998): Valoración contable en los procesos de fusión y escisión: Análisis de la legislación mercantil y de la normativa profesional en la Comunidad Europea, Tesis Doctoral, Universidad de León. TASCÓN, M.T., POLANTINOS, S. y AMOR, B. (2006): Primeros efectos del cambio de normativa contable para la valoración de las entidades financieras españolas, Partida Doble, 178, junio, pp. 50-63. |
Recommendations |
Subjects that it is recommended to have taken before | |||
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Other comments | |
3 credits in Spanish and 3 credits in English will be taught. |