Financial Valuation

The Certificate in Financial Valuation is designed for executives, high performers, and finance professionals who aim to acquire in-depth knowledge and practical skills in key areas of finance related to corporate valuation. The program focuses on cutting-edge tools and techniques to value corporate projects as well as various types of companies by analyzing both their business risk and the financial risk. It provides a thorough understanding of the risk and return of financial instruments, financial statement analysis, corporate financial policy, the cost of capital, and other topics related to financial valuation. The certificate relies on world-class teaching by outstanding HEC Paris faculty, including renowned researchers with executive-education experience and high-level investment bankers and consultants.

Financial assets and markets, stocks and bonds, Time Value of Money, Net Present Value, yield curve, opportunity cost of capital, terminal value, Internal Rate of Return, Payback Period.

Holding period return, expected return, return variance/volatility, portfolio risk and return, Capital Asset Pricing Model (CAPM), other asset pricing models.

Forwards and futures contracts, call options and put options, exotic options, option strategies, implied volatility, hedging price risk.

Financial statements, ratio analysis, profitability analysis, credit risk analysis, revenue and asset recognition, interpreting financial statements, accounting fraud.

Financial forecasting and dynamics, sustainable growth rate, capital structure, cash reserves, payout policy, dividends and share repurchases.

Weighted Average Cost of Capital (WACC), unlevered beta, consumption and investment decisions, capital structure, Adjusted Present Value (APV), Modigliani-Miller theory.

Free Cash Flows (FCF), Equivalent Annual Annuity method, pro-forma forecasting, Flow to Equity (FTE) valuation, Capital to Cash Flows (CCF) valuation, risk-neutral valuation, real options, project finance.

Learning methods: Most courses in the CeFV are delivered by alternating between lectures, case studies, exercises, simulations, applications, group work, and in-class presentations. Most courses require preparation before class: reading case studies or articles, answering preparatory questions, or solving a pre-class assignment. In the certificate project part, each participant chooses a tutor (supervisor) from the HEC Paris faculty to work on a certificate project. The project gives participants the opportunity to specialize in a particular area of financial valuation by applying what they have learned during the certificate on an original individual project. In this process they capitalize on the input and guidance of faculty and field experts from the world of finance who act as tutors.

Evaluations : Participants are evaluated along multiple dimensions: group work write-ups or presentations on projects or case studies, quizzes, in-class or take-home exercises, quizzes, multiple-choice questionnaires, final exams, post-class analyses, and class participation. The weights instructors choose among all these dimensions vary with each class.

The program is intended for finance directors in all sectors, current and aspiring corporate executives, bankers and financial services experts, and other experienced professionals: managers who wish to move to a more senior role (CEO, CFO, CIO, COO), executive board members, senior leaders, or private equity/venture capital/startup/family office founders.

Our certificate is designed for all executives, senior managers, and functional or operational leaders with at least 5 years of professional experience who wish to develop, enhance, or update their skills in the field of finance.