Jim and Kay Stice – Business Valuation Fundamentals

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.

Topics include:

• Using market, cost, and income approaches to business valuation
• Valuing homes
• Valuing companies by multiples
• Using price-to-sales ratios to value companies
• Using discounted cash-flow analysis to estimate value
• Valuing McDonald’s as a case study

• Introduction
• 1. Introduction to Business Valuation
• 2. Price Multiples
• 3. Discounted Cash Flow Analysis
• 4. Case Study: Valuing McDonald’s
• Conclusion

Earl Kay Stice is the PricewaterhouseCoopers Professor of Accounting at the Marriott School of Management, Brigham Young University (US). He has been on the full-time faculty at Rice University, the University of Arizona, and the Hong Kong University of Science and Technology (HKUST). He has also been an Executive MBA lecturer at HKUST, SKOLKOVO (Moscow School of Management), China Europe International Business School (CEIBS), the University of Illinois (US), and INSEAD (Singapore and Paris). Professor Kay Stice has received awards for high-quality teaching at Arizona, Rice, and Brigham Young University, and he was twice selected as one of the top ten lecturers at HKUST.

Professor Stice has been engaged in executive training and corporate training in the United States, Hong Kong, China, Russia, Malaysia, and South Africa. He has also been an expert witness in major cases involving compensation for losses and tax disputes.

Professor Stice received his bachelor’s and master’s degrees in accounting from Brigham Young University and completed his PhD at Cornell University (US).