Company Financial Valuation

Day 1: Valuation: Introduction to different methods 

• Introduction to business valuations 
• Various types of valuation methodologies
• Analysis of company and identifying appropriate methodology to be used for valuation
• Approach to Asset Value vs. Equity Value
• Key pitfalls

Day 2: Cost of Capital – Equity and Debt 

• Components of cost of equity and debt 
• Measurement of risk-free returns 
• Risk premium for debt and equity and issues in calculating the same

Day 3: Cash Flow and Valuation 

• The Discounted Cash Flow Model 
• Setting up the Model 
• The Big Picture of DCF Valuation 
• Valuation Examples 
• The Discount Rate Question
• Risk premiums and Betas 
• The Cost of Debt
• Estimating Cash Flows 
• Estimating Growth Rates 
• Estimating Growth Patterns 
• The Terminal Value 
• Closing Thoughts on DCF

Day 4: Valuation 

• Cash, Cross holdings and other assets 
• The Value of Control, Synergy and Transparency 
• The Liquidity Discount 
• Employee Stock Options Challenges in Valuation 
• Valuing young, growth companies 
• Valuation of start-up ventures and negative cash generating companies 
• Return analysis 
• Valuing mature companies in transition 
• Valuing declining and distressed companies 
• Relative Valuation 
• Comparable company valuation

Day 5: Course Summary

• Discover capital budgeting and appraisals, examine the workings of capital markets, and master the principles of capital structure. 
• Explore a range of valuation tools and techniques, including how to apply cash flow analysis, cost of capital analysis, and risk analysis. 
• Understand intricacies of illiquidity and optimal financing, including key issues like governance, cross-border transactions and leverage. 
• Perform valuations on private companies like Google and Nike, using realworld cases. Learn how to put a value on any firm in a global context.