Course details
Do you know the value of your business? Business valuation is critical when selling a small business, bringing on a partner, seeking additional debt or equity financing, establishing the share valuation in an initial public offering (IPO), or buying another company. In this course, accounting professors Jim and Kay Stice provide an introduction to the most important business valuation methods. They proceed from the valuation of individual assets and liabilities to the valuation of entire businesses. The course includes practice with simple valuation models, such as the use of multiples and price-to-earnings ratios, as well as the more complicated “discounted cash flow” valuation model. The final chapters include a fun and practical examination of the value of one very real business—McDonald’s—and some parting words of advice.
Make sure to check out the Stice brothers’ other accounting and finance courses to understand the other economic factors that impact your business.
Instructors
Jim SticeLinkedIn Learning Instructor at LinkedInJim Stice is a professor of accounting at BYU.
James D. Stice, PhD, is the Distinguished Teaching Professor of Accounting in the School of Accountancy at Brigham Young University (BYU). He teaches business and accounting to university students and to business professionals around the world. Professor Stice has been at BYU since 1988. He has co-authored three accounting textbooks and published numerous professional and academic articles. In addition, Professor Stice has been involved in executive education for Ernst & Young, Bank of America Corporation, International Business Machines Corporation, RSM, and AngloGold Limited and has taught at INSEAD (in both France and Singapore) and CEIBS (in China). He has been recognized for teaching excellence by his department, his college, and the university. Professor Stice currently serves on the audit committee of Deseret Management Corporation and served on the board of directors of a publicly traded company until it was taken private.
Professor Jim Stice received a PhD from the University of Washington as well as master’s and bachelor’s degrees from BYU, all in accounting.
Welcome
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– 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, and I’m a professor of finance and accounting at Nazarbayev University in Kazakhstan. – In this course, we provide an introduction to business valuation. – Business valuation brings together the fields of accounting and finance. – From accounting, we obtain data that are important inputs into many valuation models. These data include net income, sales, and cash flows. – From finance, we draw from the concepts of risk, returns, and the time value of money. – In this course, we introduce two basic valuation approaches, valuation using multiples and the more challenging valuation, using discounted cash flow analysis. – 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. – Once we’ve…