Comparative Valuation Techniques
Short course
In City Of London
Description
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Type
Short course
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Methodology
Inhouse
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Location
City of london
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Class hours
6h
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Duration
1 Day
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Start date
Different dates available
This course provides participants with a comprehensive review of comparable company valuation. The review will cover sourcing data for valuation, defining "Firm Value", the markets approach to valuation, the rationale for comparable analysis, a detailed review of all the valuation ratios used in comparable analysis (PE's/EV/EBITDA etc.) and their uses. General sector ratios are provided. Partici
Facilities
Location
Start date
Start date
Reviews
Subjects
- Valuation
- Valuation Techniques
Teachers and trainers (1)
Former Practitioner
Former Practitioner
Course programme
This course provides participants with a comprehensive review of comparable company valuation. The review will cover sourcing data for valuation, defining "Firm Value", the markets approach to valuation, the rationale for comparable analysis, a detailed review of all the valuation ratios used in comparable analysis (PE's/EV/EBITDA etc.) and their uses. General sector ratios are provided.
Participants will value the target company using comparable methods. Use is made of a case study based on Wagamama, a private restaurant chain operating in the UK and Ireland.
Participants will be required to bring scientific calculators and a laptop with USB port to the course. Course Content
Valuation measures
Comparable valuation in context
Source data
Accounting data - harmonised & maintainable earnings
Market Data - understanding the impact of growth, profits, risk, leverage,
size, liquidity and control on valuation
Time periods
Defining firm value
Comparable valuation rationale
Choosing comparable companies
Equity and asset ratios
Income ratios
Equity multiples
P/E and price/book definition
Cleaning net earnings
P/E relatives
PEG ratios
Limitations
Asset multiples
Concept/rationale
Calculation of net debt/EV
Calculation of asset multiples (sales, EBITDA/cash flow, EBIT)
Relative and PEG ratio equivalents
Equity and asset capital ratios
Deriving business assets and invested capital
Explanatory power of capital and income ratios together
Operating/credit statistics
Gearing, leverage, interest cover
Credit ratings
Valuation of target company using multiples
Presentation of results
Assessment of market under/overvaluation and own valuation
Comparable transaction analysis
CTA rationale
Contrast with CCA
Structuring transactions: financial implications
Asset/equity transactions
Cash free/debt free
Completion balance sheets
Comparative Valuation Techniques