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03 September 2020

Valuation techniques (with valuation modelling)

Category: MASTER COURSE

Learn the two main techniques used in the valuation of companies and their interrelationships: discounted cash flow (DCF) and comparable multiples - and how to apply them.

Who should attend?
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.

What you can gain
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.

To further develop your skills in financial modelling using Excel, see Financial modelling - introduction and Financial modelling - comprehensive.

Programme outline
What is meant by the 'value' of a company?

  • 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 (FCF)
  • Treatment of taxation, interest and inflation
  • Terminal value calculations
  • Company values and share prices
  • Discount rates
  • - the cost of equity or ke - the capital asset pricing model (CAPM)
  • - the cost of debt of kd
  • - weighted average cost of capital (WACC) - identifying an appropriate discount rate; multiples
  • Sensitivity analysis using Excel data table function

Comparables analysis

  • Using multiples as valuation tools
  • Common adjustments made to multiples
  • Sources of multiples - CompAcs and CompCos
  • Price / earnings ratios, EV / EBIT and EVI / EBITDA multiples
  • Use of other multiples such as sales multiples, price-to-book etc.
  • Rules of thumb used in different industries.

No prior knowledge of valuation techniques is assumed. You will need a familiarity with financial statements which can by gained by attending Company accounts - introduction. Delegates should also feel comfortable with the basics of compound interest, which we will review.

Information for Online Live dates
Please read the following guidance carefully, which only applies if you are attending this course online:

  • In addition to the Online Classroom, you will need to have your own version of Excel open to complete the exercises
  • It is difficult (but not impossible) to do this with only 1 screen as you will need to be regularly switching between open windows. We recommend to either:
  • Extend from a computer to a 2nd screen, or
  • Use 2 computers, or
  • Use a tablet for the online classroom and a computer for the Excel
  • You are strongly recommended to perform the exercises on a PC rather than a MAC. Using a MAC is possible but the trainer will be unable to help you with the required shortcuts.

The course starts at 9.00am on each day.  Lunch and refreshments are included, but not accommodation.
12 CPD hours (where applicable). 

CIMA work in partnership with BPP Professional Education to offer CPD training courses

Booking Information

Date Location Price
3 September 2020 - 09:30 Online Live - 2 day course Price: GBP 1,290.00
Member price: £1,161. Plus VAT on all prices. Excluding accommodation.
5 November 2020 - 09:30 London - 2 day course Price: GBP 1,290.00
Member price: £1,161. Plus VAT on all prices. Excluding accommodation.
10 December 2020 - 09:30 London - 2 day course Price: GBP 1,290.00
Member price: £1,161. Plus VAT on all prices. Excluding accommodation.

Valuation techniques (with valuation modelling)

CIMA members and students should log in to MY CIMA before booking to receive the appropriate discount.

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In-house training 
We can develop tailored training programmes to enhance the finance and business skills of staff across your organisation. To discuss how we can meet your learning and development needs please email us.

Find out more 
If you have any queries please email cima@bpp.com or phone us on: +44 (0)3300 603400.

The venue for this course will be confirmed 14 days before the scheduled date. 

CIMA work in partnership with BPP Professional Education to offer CPD training courses.  

This course will be delivered by BPP Professional Education Limited (“BPP”).  Accordingly, when you sign up for this course, CIMA will pass on the contact details you have provided to BPP so that they can contact you to complete your booking and process payment.  BPP will process any personal information it collects about you in accordance with its privacy policy, which is available at: https://www.bpp.com/professional-education/privacy

The information provided to BPP will not be used by BPP for marketing purposes.

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