Valuation techniques (incorporating valuation modelling)

The focus of this three-day course is to teach the two main techniques used in valuation of companies and their inter relationships: discounted cash flow (DCF) and comparable multiples. It aims to provide you with an understanding of their practical uses, together with hands-on experience in applying them in practice. 

This course will be of benefit to anyone who needs to understand and apply valuation techniques, including equity analysts and fund managers, corporate finance professionals, accountants and business development executives.

An understanding of the practical uses of  discounted cash flow and comparable multiples, together with hands-on experience in applying them in practice.

Although this is not a course in financial modelling using Excel it makes use of simple Excel exercises which aim to give you greater confidence in doing valuations.

The speaker will be drawn from a pool of qualified professionals who specialise in this subject. Having worked for leading organisations they will relate the course content to real life case studies.

Valuing equities

• basic principles of value
• company valuation and deriving share price
• enterprise and equity values.

Discounted cash flow (DCF)

• introduction to DCF mathematics
• deriving pro forma free cash flow to enterprise
• treatment of taxation, interest and inflation
• terminal value calculations
• company values and share prices.

Discount rates

• the cost of equity
• the capital asset pricing model (CAPM)
• the cost of debt
• weighted average cost of capital (WACC)
• identifying an appropriate discount rate.

Multiples

• choice of EV or equity multiples
• using multiples as valuation tools
• common adjustments made to multiples
• sources of multiples - CompAcs and CompCos
• price/earnings ratios, EBIT and EBITDA multiples
• sales multiples.

Introduction to the valuation of intangibles

Introduction to APV and real option analysis

18 CPD hours (where appropriate)

Participants will require a familiarity with financial statements. Delegates should also feel comfortable with the basics of compound interest.

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If you have any queries please email or phone us on +44 (0)845 026 4722.

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