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Provided by: Financial Training Associates Ltd Valuation modelling course - 2 daysAccounting and Finance |
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This financial training course is conducted as a workshop where delegates work to value a target business of their choice, using DCF and comparable/ relative valuation multiples.
The course provides participants with a comprehensive review of company valuation, the main techniques and their inter-relationships. The review will cover sourcing data for valuation, a cleaninga source numbers, defining and calculating firm value (enterprise vs. equity value), calculating reference multiples, applying them to target companies and valuing target companies using various valuation techniques.
The course provides participants with a comprehensive review of company valuation, the main techniques and their inter-relationships. The review will cover sourcing data for valuation, a cleaninga source numbers, defining and calculating firm value (enterprise vs. equity value), calculating reference multiples, applying them to target companies and valuing target companies using various valuation techniques.
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Training
Provided by Financial Training Associates Ltd
Valuation modelling course - 2 days
Training Program Details
Day 1 - discounted cash flow (DCF) valuation
The starting point for DCF valuation
Forecasting from financial statements and getting to cash flow
Modelling integrated financial statements
What makes a good model?
Model structure
The benefits of integrated financial statements for valuation
Key forecast ratios
Modelling integrating financial statements. Participants will complete a partially-developed financial model for the case study which integrates P&L, balance sheet and cash flow, and use this to forecast cash flow for a DCF valuation.
Case study: stand alone valuation
Absolute valuation
Calculating free cash flow before financing
Understanding and calculating WACC
Conducting a DCF valuation
Modelling valuation. Delegates calculate the cost of capital and complete a DCF valuation for a case business.
Discussion calculating WACC:
Sources for beta estimates
Obtaining a peer group
Obtaining interest rates
Calculating terminal value
Defining firm value
How should we define firm value?
How do we reconcile to debt free cash free valuation?
Modelling firm value. Delegates work from enterprise value and use financial statements to calculate equity value.
Day 2 multiples/ relative/ comparable valuation
Introduction: valuation camps
Comparable valuation in context
Introduction to and discussion of common valuation techniques
Comparison of comparable with absolute (DCF) valuation
Pros & cons of comparable valuation
Choosing comparable companies
Manipulating comparable company analysis
Issues in choosing comparable companies
Stepping through comparable company analysis the process
Sources of info
Keys to selecting comparables
Comparable analysis: pitfalls
Selecting multiples
Overview of common multiples
Which strip out variability? Which are more volatile?
Normalising earnings and source data
Key issues in source data: getting to harmonised and maintainable earnings, making use of data available to the market
Cleaning the numbers
Key adjustments
Discontinued operations
One off & exceptional items
Tax effects
Pensions and other items that look like finance costs
The role of judgement & detective work
Case exercise cleaning the numbers. Delegates work from a set of accounts and adjust to get to underlying profitability.
Summary: cleaning the numbers a check list
Defining firm value and calculating multiples
Enterprise vs. shares value
Routes to valuation/ applying it in practice
Key adjustments e. g. provisions and minority interests
Overview of common multiples
Case exercise equity to enterprise value. Delegates work from a set of accounts to reconcile equity and enterprise value, adjusting for debt, cash, provisions and minority interests.
Discussion multiples which are more volatile? Which is best when?
Applying it in practice.
The starting point for DCF valuation
Forecasting from financial statements and getting to cash flow
Modelling integrated financial statements
What makes a good model?
Model structure
The benefits of integrated financial statements for valuation
Key forecast ratios
Modelling integrating financial statements. Participants will complete a partially-developed financial model for the case study which integrates P&L, balance sheet and cash flow, and use this to forecast cash flow for a DCF valuation.
Case study: stand alone valuation
Absolute valuation
Calculating free cash flow before financing
Understanding and calculating WACC
Conducting a DCF valuation
Modelling valuation. Delegates calculate the cost of capital and complete a DCF valuation for a case business.
Discussion calculating WACC:
Sources for beta estimates
Obtaining a peer group
Obtaining interest rates
Calculating terminal value
Defining firm value
How should we define firm value?
How do we reconcile to debt free cash free valuation?
Modelling firm value. Delegates work from enterprise value and use financial statements to calculate equity value.
Day 2 multiples/ relative/ comparable valuation
Introduction: valuation camps
Comparable valuation in context
Introduction to and discussion of common valuation techniques
Comparison of comparable with absolute (DCF) valuation
Pros & cons of comparable valuation
Choosing comparable companies
Manipulating comparable company analysis
Issues in choosing comparable companies
Stepping through comparable company analysis the process
Sources of info
Keys to selecting comparables
Comparable analysis: pitfalls
Selecting multiples
Overview of common multiples
Which strip out variability? Which are more volatile?
Normalising earnings and source data
Key issues in source data: getting to harmonised and maintainable earnings, making use of data available to the market
Cleaning the numbers
Key adjustments
Discontinued operations
One off & exceptional items
Tax effects
Pensions and other items that look like finance costs
The role of judgement & detective work
Case exercise cleaning the numbers. Delegates work from a set of accounts and adjust to get to underlying profitability.
Summary: cleaning the numbers a check list
Defining firm value and calculating multiples
Enterprise vs. shares value
Routes to valuation/ applying it in practice
Key adjustments e. g. provisions and minority interests
Overview of common multiples
Case exercise equity to enterprise value. Delegates work from a set of accounts to reconcile equity and enterprise value, adjusting for debt, cash, provisions and minority interests.
Discussion multiples which are more volatile? Which is best when?
Applying it in practice.
About The Training Provider: Financial Training Associates Ltd
Financial Training Associates Ltd - Financial Training Associates Ltd is a company that provides finance related training courses. Course areas encompass excel financial modelling training, project finance, corporate finance and company valuation as well as other related course subject areas such as risk management, corporate credit analysis, private equity, loan restructuring and energy risk management.
