About this Course
5.0
102 ratings
39 reviews
100% online

100% online

Start instantly and learn at your own schedule.
Flexible deadlines

Flexible deadlines

Reset deadlines in accordance to your schedule.
Hours to complete

Approx. 20 hours to complete

Suggested: The course consists of 4 weeks only. The estimated workload is 2-5 hours per week....
Available languages

English

Subtitles: English
100% online

100% online

Start instantly and learn at your own schedule.
Flexible deadlines

Flexible deadlines

Reset deadlines in accordance to your schedule.
Hours to complete

Approx. 20 hours to complete

Suggested: The course consists of 4 weeks only. The estimated workload is 2-5 hours per week....
Available languages

English

Subtitles: English

Syllabus - What you will learn from this course

Week
1
Hours to complete
1 hour to complete

Executive Summary

Welcome! My name is Han Smit, I am Professor of Corporate Finance at Erasmus School of Economics. I will be your lecturer, and together with my team, Dyaran Bansraj and Nishad Matawlie, we are going to take you on a fascinating journey that may change the way you make strategic investment decisions. This executive level course consists of a series of accessible animation videos. Step by step we develop the conceptual frameworks and new valuation principles for strategic investments that are difficult to value with traditional tools. These new valuation methods can be particularly interesting for venture capitalists, private equity investors, investment bankers, CEOs, and CFOs. This executive level course is meant for those who want to be updated on the latest insights in corporate strategy and valuation techniques. You can walk through the fundamentals of the course in less than a week! If you wish to follow the student level, you can skip this week (don't worry, you won't miss out on anything)!...
Reading
6 videos (Total 18 min), 1 reading, 1 quiz
Video6 videos
Animation - Where value comes from2m
Animation - The value of flexibility2m
Animation - Real options are everywhere!2m
Animation - The value of strategic commitment2m
Animation - Option Games: Integrating flexibility and strategic commitment3m
Reading1 reading
Outline5m
Quiz1 practice exercise
Understanding expanded net present value24m
Week
2
Hours to complete
5 hours to complete

Discounted Cash Flow Analysis

We show you how to apply DCF approaches and provide case applications illustrating the powerful potential of this valuation methodology. We consider historical analysis, the estimation of free cash flows, various DCF approaches, and multiples valuation. In the assignments we consider specialized topics such as the valuation of leveraged buyouts. After this module you will be familiar with DCF approaches and will be able to relate them to strategy. ...
Reading
7 videos (Total 59 min), 4 readings, 4 quizzes
Video7 videos
When to use DCF approaches7m
Forecasting free cash flows based on historical performance8m
Calculating free cash flows10m
Calculating the terminal value9m
Using multiples valuation9m
Answer to practice quiz 'WACC method'9m
Reading4 readings
Key value driver derivation (optional)10m
Types of multiples (optional)15m
Answer to practice quiz 'APV Method'10m
The case of RJR Nabisco10m
Quiz3 practice exercises
WACC Method30m
APV Method30m
Test for certificate45m
Week
3
Hours to complete
2 hours to complete

Corporate Strategy

This module closes the gap between traditional corporate finance and strategic planning by linking corporate strategy to the market value. We can assess the value of a company through the expanded NPV criterion, which is able to capture the value of the firm's growth options. We review various strategic paradigms that analyze the underlying sources of this growth option value, focusing on industry analysis, firms' internal resources and dynamic capabilities. After this module you will be able to recognise the strategic growth option value in the market value of a company....
Reading
3 videos (Total 20 min), 2 readings, 3 quizzes
Video3 videos
How to estimate growth option value6m
Strategic paradigms and growth option value10m
Reading2 readings
Linking valuation to strategy10m
Economic value added (EVA)10m
Quiz2 practice exercises
Corporate strategy30m
Test for certificate45m
Week
4
Hours to complete
4 hours to complete

Corporate Real Options

This module reviews the basic concepts and valuation principles of real options. Real options theory quantifies decision making under uncertainty and stresses the importance of wait-and-see flexibility, suggesting that managers should wait until major uncertainties are resolved and the project is more clearly beneficial. Since it recognizes that investments tend to be sequentially related over time, real options analysis is particularly suitable for valuing strategies in addition to isolated projects. After this module you will be able to quantify the flexibility component of the strategic growth option value. This is an important capability when valuing high-tech companies....
Reading
11 videos (Total 81 min), 5 quizzes
Video11 videos
Animation - Real options are everywhere!2m
Timing option5m
Risk neutral valuation6m
Valuing a R&D project10m
Option to expand or contract7m
Option replication and risk neutral valuation13m
Multi-period, continuous, and compound models9m
Answer to practice quiz 'Option to invest'9m
Answer to practice quiz 'Option to expand or contract'5m
Answer to practice quiz 'Option to abandon'6m
Quiz4 practice exercises
Option to invest15m
Option to expand or contract10m
Option to abandon10m
Test for certificate45m
5.0
39 ReviewsChevron Right

Top Reviews

By JSSep 26th 2018

Great topic, great content, great explanatory animations!

Instructors

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Han Smit

Professor of Corporate Finance
Finance
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Dyaran Bansraj

Lecturer
Finance
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Nishad Matawlie

Lecturer
Finance

About Erasmus University Rotterdam

Erasmus University: a top-100 ranked international research university based in Rotterdam, the Netherlands. Our academic teaching and research focuses on four areas: health, wealth, culture and governance. Erasmus University Rotterdam: make it happen. ...

Frequently Asked Questions

  • Once you enroll for a Certificate, you’ll have access to all videos, quizzes, and programming assignments (if applicable). Peer review assignments can only be submitted and reviewed once your session has begun. If you choose to explore the course without purchasing, you may not be able to access certain assignments.

  • When you purchase a Certificate you get access to all course materials, including graded assignments. Upon completing the course, your electronic Certificate will be added to your Accomplishments page - from there, you can print your Certificate or add it to your LinkedIn profile. If you only want to read and view the course content, you can audit the course for free.

  • You can follow the MOOC without studying additional sources. Further reading of the discussed topics, including the Building Blocks) is provided in the textbook that I wrote with Lenos Trigeorgis: Strategic Investment: Real Options and Games, Princeton University Press, E-book ISBN9781400829392

  • In four weeks, we review the four most important foundations in valuation and strategy: corporate valuation, strategic management and growth option value, corporate real options, and game theory. If you don't have four weeks, you can also follow the course at your own pace. The full course content will be available from the start!

  • Yes you can!

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