Company Valuation
What you'll learn
- Understand the scope of valuation techniques used in the real world
- Learn and Apply Comps and DCF valuation techniques and all the detail that goes into the methods
- Understand how to choose a comparable company - what makes a company comparable?
- Apply Comps valuation to a real-life case company using sector comparables
- Learn how DCF is applied and why it is relevant, and how it links to the company's fundamental cash flows
- Understand and calculate the components of a WACC, converting them into a single WACC appropriate for DCF
- Practice DCF techniques in downloadable exercises, fully explained by your expert tutor
Requirements
- Although all concepts are explained from scratch, delegates will progress more efficiently if they have a basic knowledge of numbers that come out of Financial Statements that will be used (essentially EBITDA, EBIT, balance sheet liabilities, Earnings) and some understanding of ROCE.
Description
The aim of the course is to teach delegates the principle practical techniques used in company valuation for equity analysis and corporate finance valuation. Suitable for those with little valuation knowledge, and a great refresher for those who need some practical insight and application - this is all you need to approach valuation with confidence.
The program comes in two main sections: Comps, and DCF.
Delegates will also be supplied with our DCF and Comps checklists to help them produce quality consistent valuations. The course will focus on the key issue of achieving consistency and robustness in valuation. The modules in this program cover the follow topics:
1. Introduction to valuation - what are the techniques and what are we going to cover
2. Conceptual foundations - annuities, perpetuities, Cost of Equity and P/E ratios, ROCE and ROE
COMPS (Comparable company analysis)
3. What is Comps all about and how it works - P/E, P/S, EV/EBITA: which to use when and some practical exercises to work through in excel, with a full tutor debrief
4. Valuation in context - a look at some market P/Es and how different geographies and different sized companies show different characteristics. How does that influence your choice of comparable?
5. What makes a company comparable? When looking for comparable companies as a benchmark, what are we looking for and how critical this is to our valuation: no company is average!
Take away a Comparables summary checklist (PDF)
DCF (Discounted Cash Flow)
6. How does DCF compare - who uses it and why?
7. DCF Components and Calculations: What cash flow (FCFF vs FCFE), relevant cash flows, perpetuities and how to apply a 2-stage DCF computation. A downloadable exercise with a full tutor debrief will ensure you get to grips with the numbers.
8. The WACC: what weights to we apply to Costs of Debt and Cost of Equity; how to estimate the Kd and Ke using market data and statistics, adjusting for risk.
9. First DCF: Completing a full application of a DCF in a downloadable exercise, with full tutor debrief showing computation of the WACC, and the application to FCFF.
Take away a DCF summary cheat-sheet (PDF)
10. Advanced DCF considerations: reversing out implied growth, leveraging and deleveraging the Beta (asset beta vs equity beta)
Who this course is for:
- Beginner and and basic-level analysts with little finance knowledge or graduates in a non-finance degree looking to kick start their career in finance or, specifically, investment banking
Instructor
- 4.4 Instructor Rating
- 69 Reviews
- 1,286 Students
- 8 Courses
Capital City Training is a full-service technical training company focused on the banking, wealth management and broader financial services and accounting industries.
We provide engaging, challenging, high quality training across the spectrum of hard technical skills needed in banking, investment banking, fund management and wealth management, as well as coaching and management development. Capital City also provides eLearning and distance learning packages for core skills such as accounting and analysis, financial maths, modelling and valuation.
Our e-learning programs are designed to recreate the classroom experience as closely as possible - with expert tutors explaining concepts clearly, illustrating with examples and then providing delegates with exercises to practice what they've seen, with a full tutor debrief - we all learn by doing! We combine training expertise and highly credible practical experience together to give relevant high impact courses.
Capital’s style is guided by some basic principles of adult learning, namely:
- Adults are task focused, they learn by doing;
- Adults are social, they engage with tasks and assimilate information better when working in a group;
- Adults are competitive.
In all areas of our training, we stimulate and engage delegates through involving them actively in:
- Contemporary, real-world case studies
- Group exercises
- Excel modelling, where relevant
Your expert tutors - Greg and Mark - have worked in banking and finance for many years before co-founding Capital City Training in 2010. Our clients include banks across the world, where we deliver tailored solutions on top of our core skills programs.
Greg Mayes, ACA CFA AMCT, qualified as an accountant with Ernst & Young in London, and before setting up CCT was Global Head of Financial Markets Training at Barclays Capital (now Barclays Investment Bank).
Mark Woolhouse graduated from St John’s Oxford and entered the banking world, training with JP Morgan in New York and subsequently working with one of JP Morgan’s London based affiliates, Saudi International Bank. He then worked with the UK merchant banks Hill Samuel and Charterhouse.