Corporate Valuation Techniques Training Course
Course Highlights and Agenda
This course alleviates potential problems by going beyond the fundamentals of corporate valuation, while equipping you with the latest strategies to help you successfully tackle any valuation, however complex. Encompassing your existing skills, it will enhance and expand your knowledge, leaving you with the ability to value successfully and accurately an entity every time.
If you are being increasingly faced with key business valuation challenges such as:
- Making the decisions to divest, merge, demerge or acquire
- Assessing the merits of a value-based planning programme to increase shareholder value
- Successfully managing risk
- Fully understanding the critical importance of the different costs of capital
... then you need this course.
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Agenda
Essential Elements in Valuation
- Price vs value
- Perspective of techniques
- Risk
- Company dynamics
- Return on capital vs cost of capital
Free Cash Flow - A Central Concept
- Importance of FCF
- Limitations of accounting-based data
- Components and detailed calculation exercise
Cost of Capital and DCF Valuation
- Cost calculations of the capital components
- Areas of controversial debate in deriving cost of capital
- share market premium
- betas - Discounting exercise
- Investment horizon
- The continuing period
Case Study: DCF valuation
- Debrief of case
- Sensitising valuation analyses
- Decision-making using the product of valuation techniques and pricing techniques
- Application of DCF to LBOs and MBOs
- Application of DCF in valuation of acquisitions
- Problems with emerging markets - adaptations of approach
- Application to non-quoted businesses
Pricing Techniques
- Pricing techniques - comparatives
- Selecting comparatives
- Application to non-quoted businesses
- P/E ratios
- the calculation
- the essential adjustments - Cash multiples
- Total enterprise value
- Comparative ratios
- Modelling and sensitising the components
Case Study: Comparative pricing
- Debrief of case
Dividend Valuation Model
- Dividend growth approach
- Practical problems in its application
- When dividend valuation should be chosen in lieu of dcf valuation
- Comparison of results to dcf valuation exercise
Residual Valuation Matters
- The effect of leverage on risk and return
- Optimal capital structure
- Adjusted present value
- Project risk vs company risk
- Flow-to-equity alchemy
- Overview of project appraisal
Estimating Future Cashflows and Returns
- Limitations of predictive models
- The modelling of cost structures
- Sensitising the cashflow forecast
- Establishing a valuation range
Case Study: EVA®
Economic Value Added
- The range of performance evaluation techniques
- Detailed calculations
- Analysis of results of analysis
- Market value added (mva)
- Correlation of market price to eva performance
- Strategic interpretation of eva analysis
What You Will Learn
- Decide which valuation techniques you can use to your maximum advantage
- Value companies for mergers, acquisitions, privatisation and new issues
- Quantify and deal with the risks associated with corporate valuation
- Apply the latest valuation methods to different situations, including EVA®
- Generating shareholder wealth
Reviews
"What I liked most about this course is the practical element brought in through the case studies"
"One of the best courses I have attended. Excellent, engaging, never a dull moment. What I liked most about the course was the trainer."
"Enjoyed all the aspects of the course…The trainer was very knowledgeable"
