Valuation

In addition to your class tuition and study materials, you will receive the following:


Case Study

• Case study material
• - DCF calculation
• - Relative valuation exercise

Other Extras

• Suggestions for further reading
  
• Certificate of attendance

Level: Intermediate


Synopsis:
Understanding and application of valuation techniques is essential for deriving the value of a company and its fair share price. This practical two day course will deepen your understanding of valuation and will enable you to apply different valuation techniques.


At the end of the course participants will be able to: Determine the value of a company . Calculate the enterprise value . Derive the equity value and the diluted share price . Use the Discounted Cash Flow model . Apply multiple based valuation techniques .


Prerequisites:
Basic numerical skills


Suitable For:
Anyone who is required to understand and apply valuation techniques. Including, but not limited to, equity analysts, fund managers, corporate finance executives, accountants and business development executives. It would be beneficial to have a basic familiarity with financial statements.


Valuing equity: an overview

• Drivers of equity prices
• Who uses fundamental analysis?
• The efficient market and behavioural science
• Two basic approaches characterised

Using multiples for valuing equity

• Advantages & disadvantages of multiples
• Why multiples vary-reasons and remedies
• Principal equity multiples: features and uses

Enterprise vs. equity multiples

• What is Enterprise Value (EV) & potential problems in calculating EV
• Why Use Enterprise Value Multiples?
• Key Enterprise Multiples- features and applicability

Target multiples and relative valuation

• Definition & assumptions
• One-stage and two-stage approaches
• The effect of growth on value
• Market vs. comparable vs. target multiple

Intrinsic valuation: Discounted Cash Flow (DCF)

• Establishing free cash flows
• The Capital Asset Pricing Model & component costs of capital
• The risk-free rate & the concept of Beta
• Calculating the WACC & Terminal Value
• Industry analysis, competitive advantage period and 'fade'

Valuation model

• Application of Discounted Cash Flow
• How to use Excel
• Advantages of valuation modelling
• Sensitivities and scenarios

Strategic analysis

• Strategic Analysis: frameworks dissected
• Integrating strategic analysis in the financial model
• Some thoughts on real option valuation techniques

Case study -practical application of valuation

• Determination of enterprise and equity valuation of listed company
• Provision of material of target company, industry information, selected peer information and industry research
• Elaborate discussion of real-life valuation aspects