POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

COLLEGE OF ACCOUNTANCY AND FINANCE

DEPARTMENT OF ACCOUNTANCY AND MANAGEMENT ACCOUNTING

COURSE TITLE VALUATION CONCEPTS AND METHODS

COURSE CODE ACCO 40013
CREDIT UNITS 3 UNITS
COURSE PREREQUISITE ACCO 20123
COURSE DESCRIPTION This course will provide the students with practical tools and methods to value a broad range of assets within business entit y. It covers business valuation, equity valuation, fixed income valuation, and
option valuation. Students should be able to utilize various capital and investment management and techniques in making long-term business decisions. Students should be able to differentiate the
types and measurement of risk and apply their relationships with the rate of returns.

Institutional Learning Outcomes Program Outcomes Course Outcomes

1. Creative and Critical Thinking BSA and BSMA graduates must demonstrate the ability to review, interpret, evaluate Upon completion of the course, the students will be able to:
Graduates use their imaginative as well as a rational thinking ability to life financial data and systems in compliance with established policies, procedures , a. describe the different methodologies and technique in valuation;
guidelines, agreements and/or legislation. They must be able to link data, knowledge and
situations in order push boundaries, realize possibilities, and deepen their b. use different tools using IT platforms;
insight together with different sources and disciplines to make informed decisions.
interdisciplinary and general understanding of the world. c. recommend the most suitable technique on valuation; and
2. Effective Communication BSA and BSMA graduates should possess active listening skills and the ability to d. determine and recommend best option among the set of alternative
Graduates are proficient in the four macro skills in communication (reading, effectively communicate one’s point of view, both orally and in writing, at all available for the investors.
writing, listening, and speaking) and are able to use these skills in solving organizational levels; be able to explain verbally and/or writing financial, statistical,
problems, making decisions, and articulating thoughts when engaging with administrative matters/policies/procedures/regulatory matters/audit results at a level
people in various circumstances. appropriate to the audience and must be able to negotiate effectively.
3. Strong Service Orientation
BSA and BSMA graduates should develop an ability to work in groups, possess skills to
Graduates exemplify the potentialities of an efficient, well-rounded and participate as member of a team or/and contribute to group effort; be able to teach others
responsible professional deeply committed to service excellence. new skills; be able to work to the satisfaction of the clients; negotiate and work with
4. Community Engagement diversity or work well with men and women from diverse backgrounds.
Graduates take an active role in the promotion and fulfillment of various
advocacies (educational, social and environmental) for the advancement of BSA and BSMA graduates must work with the highest standards of professionalism, to
community welfare. attain higher level of performance and generally to meet the public interest, he must
conform to the ethical standards of the profession that include: Integrity, objectivity and
5. Adeptness in the Responsible Use of Technology
independence, professional competence and due care, confidentiality, professional
Graduates demonstrate optimized use of digital learning abilities, including
behavior and moral values.
technical and numerical skills.
6. Passion to Lifelong Learning BSA and BSMA graduates should possess general knowledge in gaining and
Graduates are enabled to perform and function in the society by taking understanding of the different cultures in the world and developing an international
responsibility in their quest to know more about the world through lifelong objective thus, he must possess competency in English language, adaptability to foreign
learning. business practices, level of trainability and good capabilities in dealing with foreign
partners.
7. High Level of Leadership and Organizational Skills
Graduates are developed to become the best professionals in their respective
BSA and BSMA graduates should not only be conversant with IT concepts for business
disciplines by manifesting the appropriate skills and leaderships qualities. systems but sound knowledge on internal control in computer-based systems,
8. Sense of Personal and Professional Ethics development standards and practices for business systems, management of the adoption,
Graduates show desirable attitudes and behavior either in their personal and implementation and use of IT, evaluation of computer business systems, and managing
professional circumstances. the security information.
9. Sense of National and Global Responsiveness BSA and BSMA graduates should possess broad base of knowledge concerning macro-
environmental, economic and industry issues, business process structures, functions and
Graduates’ deep sense of national compliments the need to live in a global
practices. It includes knowledge in areas such as economics, quantitative models and
village where one’s culture and other people culture are respected.
business statistics, organizational behavior, international business, ethics and corporate
governance.
Course Plan

Week Topic Learning Outcomes Methodology Resources Assessment

1 Orientation on class policies and After orienting the students about classroom management • Presentation of the grading • Copy of course syllabus
introduction of the course policies and about the topics covered in this course, the system; class management
learner will be able to: policies and the rest of the
Discussion of the course syllabus • have an appreciation of the coverage of the course syllabus.
• establish order in the class

2 Overview of Valuation concepts and After thorough discussion of the topics, the learner will be • Online lecture and • Textbooks • Online recitation
methods able to: discussion • Instructional Materials • Online presentation
• discuss the importance of valuation in accountancy • Activities • Online references • Online quiz regarding
• Foundations of value profession; the topic
• Frameworks for valuation • discuss why people needs to apply valuation
• Definition of valuation techniques; and
• Concepts of valuation • identify the appropriate valuation techniques
• Objectives/uses of valuation
• Importance/Rationale of valuation
• Fundamental principles of value
creation

3-5 Asset based approach After thorough discussion of the topics, the learner will be • Online lecture and • Textbooks • Online recitation
able to: discussion • Instructional Materials • Reaction papers
• Book Value Method • compare the different asset-based valuation methods • Problem solving • Online references • Online quiz regarding
• Replacement Value Method for going concern; the topic
• Reproduction Value method • justify the reasonableness of the value based on the
methods;
• Liquidation Value Method
• prepare a financial model that will be used for the
valuation decision; and
• assess projects or investment opportunity with the use
of financial models.

6-8 Income Based valuation After thorough discussion of the topics, the learner will be • Online lecture and • Textbooks • Online recitation
able to: discussion • Instructional Materials • Online presentation
• Economic Value Added • understand liquidation value and its importance to • Problem solving Online references • Online quiz regarding
• Capitalization of Earnings Method business decision making; and the topic
• Discounted future earnings • apply liquidation value appropriately when
surrounding circumstances require it.

9 MIDTERM DEPARTMENTAL EXAMINATION

10-13 Discounted Cash Flows Method After thorough discussion of the topics, the learner will be • Online lecture and • Textbooks • Online recitation
• Net Cash Flows to the Firm and to able to: discussion • Instructional Materials • Reaction papers
the Equity • enumerate the advantages and disadvantages of • Problem solving Online references • Online quiz regarding
• Terminal Value Market Based Approach in valuation; and the topic
• describe the different market-based approaches.
Market Value Approach

• Empirical / Statistical Approach

• Comparable Company Analysis
• Heuristic Pricing Rules Method

14-17 Other Valuation Concepts and After the session, the learner must be able to prepare his / • Online lecture and Instructional materials Case study
Techniques her own financial model to be used for valuation. discussion
• Case study
• Financial Modelling
• Due Diligence

18 FINAL DEPARTMENTAL EXAMINATION

Suggested Readings and References

• CIRC HF 4521 S73 2015, Brailsford, Tim, Investments: Concepts and Application, 2015
• CIRC HF 4026 B75 2013, Brigham, Eugene F., Fundamentals of Financial Management, 2013
• CIRC HF 4026 R826 2015, Ross, Stephen A., Financial Management: principles and applications, 2015
• Gitman Lawrence J. and Zutter, Chad J., Principles of Managerial Finance, 13th edition. 2012
• Lascano, M.V., Baron, H. C. and Cachero, A. L. (2021). Valuation Concepts and Methodologies

Course Grading System

ONLINE MODE OF LEARNING
Class Standing 70%
Quizzes 50%
Assignments and other activities 20%
Departmental examination 30%
Total 100%

Final Grade = (1st Grading Period + 2nd Grading Period)

2

CORRESPONDENCE MODE OF LEARNING

Result from Online Final Departmental Examination 60%
Result from the activities in the modules 40%
Total 100%
 Classroom Policy
The allowed number of absences for students enrolled in ACCO 40013 with once-a-week meeting is four (4). Request for excused absences or waiver of absences must be presented upon reporting back to class.
Special examinations will be allowed only in special cases, such as prolonged illness. It is the responsibility of the student to monitor his/her own tardy incidents and absen ces that might accumulate leading to a
grade of “FA,” (Failed due to Absences). It is also his/her responsibility to consult with the teacher, chair or dean should his/her case be of special nature.

All BSA and BSMA students are expected to be academically honest. Cheating, lying and other forms of immoral and unethical b ehavior will not be tolerated. Any student found guilty of cheating in examinations
will (at a minimum) receive a grade of 5.0 in the said test.

Consultation Time
Subject to the availability of the subject teacher, student may approach the subject teacher for queries about his/her grade as well as other academic requirements for the subject.

Prepared by: Enhanced by: Reviewed by:

(Sgd.) (Sgd.) (Sgd.)

Dr. Marvin V. Lascano Luzviminda S. Payongayong, CPA Noel A. Bergonia, MBA, CPA
Faculty Member Faculty Member Chairperson, Department of Accountancy

(Sgd.) (Sgd.) (Sgd.)

Dr. Herbert C. Baron, CPA Maria Luisa U. Oliveros, CPA Marietta M. Doquenia, MBA, CPA
Faculty Member Faculty Member Chairperson, Department of Management Accounting

(Sgd.)
Andrew Timothy L. Cachero, CPA, MBA
Faculty Member

Recommending Approval:

(Sgd.)
Dr. Julieta G. Fonte, CPA
Dean, College of Accountancy and Finance

Approved by:

(Sgd.)
Dr. Emanuel C. De Guzman
Vice President for Academic Affairs

Revised September 2021