Corporate Valuation Mastery - DCF | DDM | Relative Valuation
What you'll learn
- Dividend Discount Model (DDM): Understand the intrinsic value of a company using the Dividend Discount Model and calculate required rates of return.
- Growth Company Valuation: Learn to apply DDM to growth companies and calculate their intrinsic value.
- Discounted Cash Flow (DCF) Analysis: Master the DCF method to forecast cash flows, calculate terminal values, and discount explicit period cash flows.
- Working Capital Management: Understand and calculate working capital, and link it to the Free Cash Flow to Firm (FCFF).
- Sensitivity Analysis: Perform sensitivity analysis to evaluate how changes in assumptions affect the valuation outcome.
- Capital Structure Analysis: Understand the components of a company's capital structure and calculate the cost of debt and equity.
- Options and Convertibles Valuation: Learn to value in-the-money convertibles and stock options using the treasury stock method.
- Relative Valuation Techniques: Apply different relative valuation methods including PE, PBV, and PCF ratios to compare companies.
- Comparable Company Analysis: Conduct comprehensive comparable company analysis to benchmark a target company's valuation.
- Financial Modeling in Excel: Develop robust financial models in Excel, integrating various valuation methods and financial metrics.
Requirements
- Basic Understanding of Finance: Familiarity with fundamental financial concepts such as cash flow, revenue, expenses, and net income.
- Microsoft Excel Proficiency: Basic to intermediate skills in Microsoft Excel, including functions, formulas, and data analysis tools.
- Mathematics and Statistics: A good grasp of basic mathematics and statistics to understand and apply valuation models.
- Accounting Knowledge: Understanding of basic accounting principles and financial statements (income statement, balance sheet, cash flow statement).
- Analytical Skills: Ability to analyze financial data and interpret results.
Description
Course Introduction
Welcome to "Corporate Valuation - Beginner to Pro in Microsoft Excel," a comprehensive course designed to equip you with the skills and knowledge to master corporate valuation using Microsoft Excel. Whether you are a novice or an experienced professional, this course will take you from the basics of valuation models to advanced techniques, providing you with practical, real-world applications.
Section 1: Corporate Valuation Fundamentals
In this section, you'll start with an overview of corporate valuations, understanding their significance and application. You'll dive into the Dividend Discount Model (DDM), learning how to calculate intrinsic value, required rate of return, and compare intrinsic and market prices. This section also covers the intrinsic value of growth companies, present value concepts, and introduces the Discounted Cash Flow (DCF) model. You'll forecast income statements and EBITDA, understand working capital, link free cash flow to the firm (FCFF), and discount explicit period cash flows. The section concludes with the calculation of terminal values, DCF valuation summary, sensitivity analysis, understanding capital structure, and various methods for calculating cost of debt and equity.
Section 2: Comprehensive Relative Valuation Training
This section delves into relative valuation techniques, starting with an introduction and the different types of relative valuation. You'll explore earning and book multiples, EV ratios, PE ratios, and PBV ratios, including their advantages and disadvantages. The course will guide you through the process of finding comparable companies, conducting benchmarking analysis, and working on various financial statements. You'll also learn about trading multiples, industry averages, and relative valuation sheets, providing a holistic understanding of how to perform comprehensive relative valuations.
Section 3: DCF - Discounted Cash Flow
In this section, you'll focus on the Discounted Cash Flow (DCF) method, beginning with an introduction and course outline. You'll explore various valuation methodologies, basic concepts of DCF, terminal value concepts, and the common traits of DCF values. The section covers important accounting equations, the advantages of DCF, steps involved in the DCF process, and predicting cash flows. You'll work through a case study to predict terminal values, calculate cost of debt and equity, and understand beta. The section concludes with creating a sensitivity table, finalizing the case study, and preparing for common interview questions.
Conclusion
By the end of this course, you will have a deep understanding of corporate valuation techniques, including DDM, DCF, and relative valuation methods. You will be able to apply these concepts using Microsoft Excel to analyze and value companies effectively. Whether you aim to enhance your professional skills or advance your career, this course provides the essential tools and knowledge to achieve your goals.
Who this course is for:
- Finance Students: Those pursuing finance-related degrees who want to deepen their understanding of corporate valuation.
- Investment Bankers: Professionals in investment banking looking to enhance their valuation skills.
- Financial Analysts: Analysts seeking to improve their ability to value companies and assess investment opportunities.
- Accountants: Accountants interested in gaining insights into valuation techniques and financial modeling.
- Corporate Finance Professionals: Individuals working in corporate finance who want to refine their valuation methods.
- Investors and Traders: Investors and traders aiming to make informed decisions based on company valuations.
- Entrepreneurs and Business Owners: Entrepreneurs and business owners seeking to understand the value of their businesses and potential investment opportunities.
- Consultants: Consultants who provide financial advice and need a robust understanding of valuation models.
- Aspiring Finance Professionals: Individuals aspiring to start a career in finance, investment banking, or financial analysis.
- Anyone Interested in Finance: Anyone with a keen interest in corporate finance and valuation techniques, regardless of their background or experience level.
Instructor
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