Make sure to check out the Stice brothers' other accounting and finance courses to understand the other economic factors that impact your business.
- Market, cost, and income approaches to business valuation
- Valuing homes
- Valuing companies by multiples
- Using price-to-sales ratios to value companies
- Estimating value with discounted cash-flow analysis
- Valuing McDonald's as a case study
Skill Level Intermediate
- In this course, we provide an introduction to business valuation. - Business valuation brings together the fields of accounting and finance. - [Jim] From accounting, we obtain data that are important inputs into many valuation models. These data include net income, sales, and cash flows. - [Kay] From finance, we draw from the concepts of risk, returns, and the time value of money - Hi, I'm Jim Stice. I'm a professor of accounting at Brigham Young University. This is my brother, Kay. - I'm also a professor of accounting at Brigham Young University. - [Jim] In this course, we introduced two basic valuation approaches, valuation using multiples, and the more challenging valuation, using discounted cashflow analysis. - [Kay] We will illustrate these models using real examples, so we will look at the process used in setting the initial price of Microsoft shares when the company did its IPO way back in 1986. - [Jim] Once we've learned a little about valuation using multiples, we will practice by valuing a Chinese telecommunications company. - [Kay] In a capstone example, we will use several different models to estimate the value of McDonald's. - And we will address the question that you are asking yourself right now. Can I use my newly found knowledge of business valuation to pick winning and losing stocks in the stock market? So let's learn about business valuation.