Dates

 13 October 2008

 Course Overview

This course provides participants with a comprehensive review of comparable company valuation. The review will cover sourcing data for valuation, defining “Firm Value”, the markets approach to valuation, the rationale for comparable analysis, a detailed review of all the valuation ratios used in comparable analysis (PE’s/EV/EBITDA etc.) and their uses. General sector ratios are provided.

Participants will value the target company using comparable methods. Use is made of a case study based on Wagamama, a private restaurant chain operating in the UK and Ireland.

Participants will be required to bring scientific calculators and a laptop with USB port to the course.

 Course Content

 Valuation measures
Comparable valuation in context

 Source data
Accounting data – harmonised & maintainable earnings
Market Data - understanding the impact of growth, profits, risk, leverage,
  size, liquidity and control on valuation
Time periods

 Defining firm value

 Comparable valuation rationale
Choosing comparable companies

 Equity and asset ratios
Income ratios

 Equity multiples
P/E and price/book definition
Cleaning net earnings
P/E relatives
PEG ratios
Limitations

 Asset multiples
Concept/rationale
Calculation of net debt/EV
Calculation of asset multiples (sales, EBITDA/cash flow, EBIT)
Relative and PEG ratio equivalents
Equity and asset capital ratios
Deriving business assets and invested capital
Explanatory power of capital and income ratios together

 Operating/credit statistics
Gearing, leverage, interest cover
Credit ratings

 Valuation of target company using multiples
Presentation of results
Assessment of market under/overvaluation and own valuation

 Comparable transaction analysis
CTA rationale
Contrast with CCA

 Structuring transactions: financial implications
Asset/equity transactions
Cash free/debt free
Completion balance sheets