Advanced Financial Analysis Series :
Corporate Valuation Methodologies and Valuation
modelling (Module 2)
On 22 March 2018 (Thurs)
Eligible for FTS and Skills Future Claims
How can you tell if a company is undervalued or overvalued? Is the current stock price the only measure of value? Why would one company command a higher or lower premium than its direct competitor? This course takes a practical, tangible, and non-theoretical approach to examining how corporations are valued and the major analytical tools that are used. Go beyond the academic theory of financial ratios and apply fundamental analysis and real-world methods of evaluating a company's intrinsic value. Gain insight into relative valuation methodologies (trading comps, deal comps) to fundamental valuation (discounted cash flow analysis, break-up / sum of the parts valuation). Coverage goes beyond the academic theory of financial ratios to the practical application of fundamental analysis, offering alternative, real-world methods of evaluating a company's intrinsic value.
The second half of this course builds on the first half and is hands-on, interactive and Excel-based. Apply the concepts learned in the discussion portion and perform relative valuation modeling techniques in Excel. Build a quick and dirty trading comps analysis by inputting historical results and analyst projections for comparable companies and calculating current standalone market valuation multiples. Then, construct a detailed comprehensive reference range analysis that quantifies valuation methodologies. Crystallize and appreciate the relationship between capital structure and enterprise value, equity value and price per share. Finally, build and update dynamic football field to graphically summarize valuation metrics. These tools are useful for any financial professional interested in analyzing a company.
Corporate Valuation and Corporate Finance Fundamentals:
• Enterprise Value (TEV): what is the correct treatment of minority interest and capital leases from a standalone valuation aspect vs. credit perspective vs. change of control
• What is the relevance of capital structure and leverage on a company's value?
• Why and how is corporate finance so critical to managing a firm's profitability?
• Why is P/E the root of all evil in valuation? – Learn the correct way to use multiples
• Why are P/E ratios misunderstood and what other ratios are more important?
• Utilize the correct numerator for multiples and calculating implied value
• Construct discounted cash flow analysis by estimating unlevered free cash flow (FCFF)
• Discuss proxy methods for calculating working capital without full blown BS projection
• Terminal Value estimation: what are the differences between the EBITDA multiple and perpetuity growth approaches and what are the implications on value?
• Learn subtle nuances including the proper CF figure in perpetuity growth models
• Calculate from TEV down to equity value and ultimately down to stock price per share
• Build a basic, quick and dirty, back-of-the-envelope trading comps analysis
• Input historical results and analyst projections for public comparable companies
• Construct relative valuation analysis and calculate current valuation multiples
• Build reference range that quantifies fundamental / relative valuation methodologies
• Crystallize and appreciate capital structure relationship of TEV, equity value and price
• Build and update dynamic football field to graphically summarize valuation metrics
• Analyze, discuss, compare and contrast valuation results
Intermediate proficiency using Excel and a solid grasp of basic accounting fundamentals and an understanding of basic finance concepts are required.
Bring your PC laptop with a working USB slot and Microsoft Excel installed. Macs may not be as effective
Course fee :
CFA Singapore member :
S$880* per module (Early bird fee) / S$1,080* per module (Standard fee)
S$1,080* per module (Early bird fee) / S$1,280* per module (Standard fee)
*Price subject to 7% GST
*10% off for signup of 2 or more modules per delegate
* Early bird fee valid till 28 February 2018
Course fee includes :
Course materials, lunch & refreshments