The 2012-14 batch of SIIB got a chance to interact with Dr. Prasanna Chandra, author of finance best sellers which have been shaping many a careers.
The 2012-14 batch of SIIB got a chance to interact with Dr. Prasanna Chandra, author of finance best sellers which have been shaping many a careers. The guest lecture at SIIB centred upon the “Valuation in Corporate Finance”.
Dr. Chandra focussed on the various valuation concepts which is used to value companies. Valuation is very useful when a company is looking to acquire private equity stake in a company, looking for mergers & acquisitions, going for initial public offerings, buyback of shares, divesting businesses and so on. Dr.Chandra touched upon the various approaches like book value, stock and debt, discounted cash flow, relative & option valuation etc and suitability of the approaches to the various applications.
From his practical experience, Dr.Chandra spoke about the biases that creep into the various valuation approaches driven by prior perception, current performance, market recommendations etc. He suggested some methods to minimize the effect of bias in valuation like avoiding precommitments, insulating oneself from institutional pressures and increasing self-awareness.
In his own inimitable style, he said it is impossible to find the exact valuation but he hinted at strategies which could minimize the uncertainty in valuation like better valuation models, valuation ranges and expression of valuation in probabilistic terms.
The session was very interactive and people had questions related to the impact of brand equity on the valuation approaches, best suited techniques for certain types of valuation, careers in corporate finance and valuation and so on.
Post by Santanu Das , final year student of MBA-International Business ( Finance ). In case of any questions you can reach him at firstname.lastname@example.org