
Select a peer group for Volkswagen by evaluating market cap, revenue, and employees among major automakers, using CAGR and growth to identify comparable firms and outliers.
Adjust EBIT by removing financial services revenue and costs, accounting for one-off and non-operating items, impairment losses, government grants, gains on asset disposals, and currency conversion for cross-company comparability.
Compare adjusted EBIT and EV for Daimler, BMW, and Toyota, noting Volkswagen's slightly lower valuation and potential buying opportunity, while stressing peer selection and three-firm minimum.
Learn how to perform multiples valuation
This is a practical framework used by investment bankers, financial analysts, and finance professionals to determine a range for a company's value.
This course blends theoretical knowledge with hands-on learning, equipping you with the skills to assess a firm's worth, whether for a quick assessment or a more comprehensive analysis.
We start by exploring the fundamentals of relative valuation and its underlying assumptions. Next, we'll dive into various valuation multiples, highlighting the distinction between trading and transactional multiples. Along the way, you'll become well-versed in key principles to ensure your analysis adheres to best practices in relative valuation.
The latter portion of the course delves into a real-world example of multiples valuation (performing multiples valuation on Volkswagen), demonstrating that achieving optimal accuracy requires careful consideration and time investment. You'll see first-hand that striking a balance between valuation precision and research time is crucial for success.
Since multiples valuation often complements the Discounted Cash Flow (DCF) valuation technique, our course encourages a best-practice approach by triangulating results from both methods to establish a reliable price range.
Whether you're an aspiring investment banker, analyst, or an established professional seeking to expand your skillset, our Multiples Valuation course is the perfect way to learn valuable new skills and boost your career.
Enroll today to learn how to perform multiples valuation. See you inside!