ALBA EXECUTIVE DEVELOPMENT PROGRAMS
CORPORATE VALUATION
Discounted, Relative and
Option Pricing Applications in Valuation
conducted by
Aswath Damodaran
Associate Professor of Finance,
Leonard N. Stern School of Business,
New York University, USA
sponsored by
May 22-23, 2001
(09:00 – 17:00)
N.J.V. Athens Plaza
Constitution Square (Syntagma), tel. 3352400
CORPORATE VALUATION
Discounted, Relative and Option Pricing Applications in Valuation Management
A seminar sponsored by MARFIN HELLENIC
There are as many models for valuing stocks and businesses as there are analysts doing valuations.
Description
The differences across these models are often emphasized by their users, and the common elements
are often ignored.
The first day of the seminar will cover discounted cash flow valuation, and the estimation issues that
arise when information is noisy or unavailable.
The second day of the seminar on valuation will center around the other approaches to valuation:
▪ the use of multiples and comparables in what can be called relative valuation and
▪ the use of option pricing techniques to value certain types of stocks and businesses
In the process, the common factors that run across these models, as well as the differences, will be
discussed.
The objective of the seminar is to provide the basics to valuation, together with limitations and caveats
Objective
on the use, as well as extended examples of the application of each approach. At the end of the
seminar, participants should be able to:
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Participant Profile
Seminar Outline
value a firm in any market, using discounted cash flow models
value a firm using multiples and comparable firms
analyze and critique the use of multiples in valuation
value “problem” firms, such as financially troubled firms and start up firms
estimate the effect on value of a restructuring a firm
Equity research analysts, who are interested in examining alternatives to the multiples that they use
or the linkage to discounted cash flow models.
Corporate financial officers, who want to understand the details of valuation, either because they are
planning acquisitions or are interested in value enhancement strategies for their firms.
Analysts involved in mergers and acquisitions, who would like to acquire a wider repertoire of
valuation skills.
Portfolio managers, who are interested in the effects of corporate restructuring on firm value, and the
implications for portfolio management.
The first part of the seminar will establish the basics of discounted cash flow valuation, with a special
emphasis on the estimation issues that come up when estimating discount rates, cash flows and
expected growth. It will look at the choices in terms of DCF models and how to pick the right model to
value a specific firm. Finally, we will make the link to value enhancement measures such as economic
value added and CFROI, and examine their relative merits.
The second part of the seminar will be dedicated to relative valuation. A range of multiples that are
used currently in valuation, from earnings multiples (such as PE, Value/EBIT, Value/EBITDA) to sales
multiples (Revenue/Sales, Price/Sales), will be discussed and compared. The relationship between
multiples and discounted cash flow models will be explored, and the notion of a “comparable” firm will
be examined. (What is a comparable firm? How do you adjust for differences in growth, risk and cash
flow capabilities across firms, when estimating multiples?) Finally, the special difficulties associated
with comparing multiples across time and across markets will be highlighted.
The third part of the seminar will look at option pricing models and their potential use in valuation. It will
look at three specific applications - the valuation of the equity in a financially troubled firm as an option,
the valuation of rights to natural resources (oil reserves, mines, etc.) as options and the valuation of
patents and start-up companies as options.
Day One
Day Two
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Discounted Cash Flow Valuation: The
Basics
Discounted Cash Flow Valuation:
Estimation and Model Choice
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Relative Valuation: Earnings and Book Value
Multiples
Relative Valuation: Sales Multiples
Option Pricing Applications on Valuation
CORPORATE VALUATION
Discounted, Relative and Option Pricing Applications in Valuation Management
A seminar sponsored by MARFIN HELLENIC
Admittance Procedure
Please complete, in full, and submit the enclosed application form. You can make a
provisional reservation prior to this and we will hold a place for you for 2 weeks.
Please note, however, your place is not guaranteed until receipt of your application
form.
You should apply as early as possible due to limited class size. Priority will be given
to early applications.
The invoice must be paid in full before you join the Seminar.
Please submit your application (c/o Helena Lagia):
Fax: (301) 8964737
E-mail: exed@alba.edu.gr
www.alba.edu.gr/executive/oseminars
Payment Terms
If you register:
Until April 27, 2001
After April 27, 2001
(early application)
Full Fee:
510.000 Drs
ALBA Corporate Members:
410.000 Drs
ALBA Alumni:
360.000 Drs
€1497
€1204
€1057
(normal)
600.000 Drs
480.000 Drs
430.000 Drs
€1761
€1409
€1262
A sum of 100.000 Drs, €294 should be deposited by:
April 27, 2001
May 11, 2001
Participation fee includes tuition, educational material and light meals.

Deposits should be made to ALBA’s Bank Account number 014-101-00-2002-019187 at the
ALPHA BANK. Deposits are not refundable

Volume discounts (not valid for ALBA Alumni):
- For more than 2 participants, 10% discount per participant
- For more than 4 participants, 20% discount per participant
APPLICATION DEADLINE DATE: MAY 11, 2001
Cancellation Policy

No cancellation fee will be retained, if we receive your cancellation in writing, 5
working days before the Seminar

50% of the normal fee will be retained if you cancel less than 4 working days
before the Seminar

70% of the normal fee will be retained if you do not attend the Seminar and

Deposits are not refundable
CORPORATE VALUATION
Discounted, Relative and Option Pricing Applications in Valuation Management
A seminar sponsored by MARFIN HELLENIC
Aswath Damodaran
Associate Professor of Finance,
Leonard N. Stern School of Business,
New York University, USA
Professor Damodaran has been at NYU since 1986, received the Stern School of Business Excellence in Teaching
Award (awarded by the graduating class) in 1988, 1991 and 1992, and was the youngest winner of the Universitywide Distinguished Teaching Award (in 1990). He was a visiting lecturer at the University of California, Berkeley
(1984 –1986), where he received the Earl Cheit Outstanding Teaching Award in 1985. He was profiled in Business
Week as one of the top twelve business school professors in the United States in 1994. He has extensive teaching
experience in executive training worldwide.
His research interests include the examination of market efficiency, the effects of information and market structure
characteristics, as well as equity valuation and issues in real estate investing.
Professor Damodaran has published in the Journal of Financial and Quantitative Analysis, the Journal of Finance,
the Journal of Financial Economics and the Review of Financial Studies.
He has written two books on equity valuation: Damodaran on Valuation, John Wiley and Sons, New York, 1994
Investment Valuation, John Wiley and Sons, New York, 1995 and two on corporate finance: Corporate Finance:
Theory and Practice, John Wiley and Sons, New York, 1996 Applied Corporate Finance: A User’s Manual, John
Wiley and Sons, New York, 1996
He has co-edited a book on investment management: Investment Management (with Peter Bernstein), John Wiley
and Sons, New York, 1996
He is currently working on a book on investment philosophies.
Created in 1992 with funds supplied by the European Union and Greek corporations, ALBA is a not-for-profit Association
of 38 corporations, operating under the auspices of the Federation of Greek Industries (ΣΕΒ), the Hellenic Management
Association (ΕΕΔΕ), and the Athens Chamber of Commerce and Industry (ΕΒΕΑ). Its mission is to provide a rigorous
postgraduate business education of the highest international academic standards, as well as to bring business
organizations in close contact with Greek and foreign specialists in all scientific disciplines pertaining to business.
ATHINAS AVE & AREOS 2A, 166 71 VOULIAGMENI, ATHENS - GREECE
TEL: (301) 8964531-8 FAX: (301) 8964737
www.alba.edu.gr
CORPORATE VALUATION
Discounted, Relative and Option Pricing Applications in Valuation Management
A seminar sponsored by MARFIN HELLENIC
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(c/o Helena Lagia):
Fax: (301) 8964737
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