Date                                                                               


14-15 October 2008
20-21 January 2009
28-29 April 2009
                                                                                       
                                                                                 
                                                                                                     



 Course Overview

The advanced valuation day builds on the foundation valuation course by reconciling DCF and Comparable Company analysis. EVA, CFROI, IRR and other cashflow valuation methods are compared.

Examples are provided to illustrate each issue.

The advanced modelling day builds on the foundation modelling course by introducing: dividends, depreciation, provisions, off balance sheet finance, intangible assets, JV/associates, minorities, tax losses/deferred tax, and stock options.

Each are explained in relation to the calculation of capital and return and the impact on modelling cashflows from a company.

Examples are provided to illustrate each issue.

Participants will be required to bring a laptop

 Course Content

Enterprise Value Drivers
Rationale behind fundamental multiples
Reconciliation with DCF techniques
Defining growth, return and risk
Importance of ROCE and key drivers: margin and asset efficiency
Defining valuation balance sheet

Fundamental Multiples
Formula’s for fundamental multiples
Identifying key drivers of the following multiples:
   • EV/EBITDA: ROCE is key
   • EV/Sales: is margin important?
   • PEG: misleading numbers?
   • Price/Book: good or bad predictor of value?
   • Price/sales: when is it useful?
   • Valuation matrix
CFROI/CROCI: link between returns and capital
Which debt do you deduct
Discounts for liquidity, control/minority & size

Discounted Cashflow
WACC revisited
Estimating optimum leverage
Characteristics of:
   • Cyclical companies
   • High growth/early stage companies
   • Stable companies
1, 2, 3 stage DCF models
Defining Free cashflow using NOPAT
Dealing with the terminus
Impact of installed and incremental ROCE
EVA models equivalence to DCF
APV models explained

Modelling Course Content:

Valuation Balance Sheet
Defining growth
Importance of ROCE and Net Investment

Defining Return: the impact of…
Different standards/policies
Goodwill
Pension costs
JV’s/Associates
Operating leases costs
R&D expenses
Tax
Private company issues

Defining Capital: the impact of…
Consistency with return
Cash working capital and net debt assumptions
Goodwill: is it relevant?
Intangible asset or expense; treatment of R&D?
JV/Associates: cost or valuation?
Off Balance sheet: out of the picture?

Modelling extra’s …
Depreciation tax shield, deferred tax & capital allowances
Tax losses
Stock options – expenses & dilution
JV/Associates: cost or valuation?
Dividends
Minorities
Preference shares
Provisions: pensions and restructuring: creating a level playing field?
Adjusting for other non-operating assets and liabilities