Project Valuation

Objectives

The general objectives of the curricular unit are:

Provide students with the framework needed to rational decision making regarding the investment evaluation in real assets field domain;e da decisão de investimento.

Provide students with the main tools and techniques of investment evaluation;

Provide students with the importance of the notion of value and its computation formula;

Provide the students with concepts inherent to the definition of risk and cost equity for investment projects in real assets and familiarize them with its computing; and

Familiarize students with basic concepts inherent to the use of evaluation models regarding real assets and investments decision.

Program

1. Introduction. Company, Project and Strategy, definitions and concepts
2. Main Steps of the Project.  Investment Cycle
3. Marketing Research, Logistics and Technical Studies
4. Information Integrated System
5. Evaluation Criteria
6. Decision Theory Methods
7. Risk and Sensibility Analysis
8. Real Options

Teaching Methodologies

In the theoretical lessons the basic concepts are introduced, with accuracy in financial models but not always detailed, without forgetting the aspect of application whenever possible. In problem resolution classes it is aimed to illustrate the application of theoretical classes and, simultaneously, tests if theory was dully assimilated by students. It is presented an exercise collection (illustrative) which will be used as a working tool on both theoretical and practical classes. This illustration main goal is to exemplify issues that students will have to solve with or without the teachers help, so that they can apply the theory to the several models/analysis to practical situations and to make a business plan.

Bibliography

Brealey, R.; Myers, S.; and Allen, F. (2017). Principles of Corporate Finance (12th Ed.). McGraw-Hill Education.

Brealey, R.; Myers, S.; e Allen, F. (2008). Princípios de Finanças Empresariais (8ª Edição). McGraw-Hill Interamericana de España.

Brunner, R. (1999). Case Studies in Finance (3rd Edition). Irwin McGraw-Hill, Burr Ridge, Illinois.

Copeland, T; Koller, T.; e Murrin, J. (2000). Valuation. Measuring and Managing the Value of Companies, Third Edition, Wiley.

Couto, G. (2001). Estimação Temporal dos Betas – Uma aplicação ao mercado de capitais português. Série Moderna Finança 21. BVLP, Instituto Mercado de Capitais.

Couto, G. (2022). Finanças Empresariais Teoria e Prática, Rei dos Livros, ISBN: 978-9-89565-041-5.     

Couto, G.; Crispim, J.; Pimentel, P.; Lopes, M.; e Sousa, F. (2014). Avaliação de Investimentos (2ª Edição). Coleção Economia e Finanças. Áreas Editora.

Couto, G.; Porfírio, J.; e Lopes, M. (2004). Avaliação de Projectos. Da Análise Tradicional às Opções Reais. Publisher Team.

Damodaran, A. (2002). Investment Valuation (2nd Edition). Tools and Techniques for Determining the Value of Any Asset. John Wiley and Sons. New York.

Neves, J. (2002). Avaliação de Empresas e Negócios. McGraw-Hill Portugal.