Dates                                                                                
 
  
6 November 2008
26 March 2009
2 July 2009
25 November 2009

Course Overview

This seminar will give participants a thorough grounding in all of the basic techniques that need to be comprehended when valuing a business.
The mechanics of discounted cash flow arithmetic will be covered including the structuring of a model and participants will also gain a grasp of the issues surrounding the choice of the discount rate.

The course will also covers earnings based methods which are commonly used in valuing businesses in a variety of differing circumstances and will also address the alternative valuation techniques that may be deployed.

Delegates will be required to bring a laptop with a CD-Rom or USB Port to the seminar.

Course Content

 Business Accounting Model - Collecting the Correct Data
Basic accounting model
Importance of cashflow in business performance
Ingredients of profit and loss account statement
Creative accounting problems
Review of the different perspectives of valuation

 Relative Valuation Techniques
Using the dividend growth model approach
Variations on the growth model
Linking the dividend model with the price earnings (PER) ratio
Understanding the key drivers of PER - risk and growth assumptions
Relative sector per's and the implications for future value
Concept of EBIT and EBITDA multiples of enterprise value (EV)
Cashflow multiples - EV / FCF, price / cashflow per share
Sales, asset and other multiples used for valuation
Understanding why different multiples are used for different valuations
Benefits and drawbacks of relative valuation techniques

 Discounted Cashflow Valuation
Investment appraisal theory and principles of net present value
Forecasting the cashflow of the firm
Free cash flow (FCF) calculation
Free cash flow to the firm (FCFF) and free cash flow to equity (FCFE)
Estimating the cost of capital to apply as a discount rate
Calculating the terminal value
Limitations of the model