Course Category

Business Valuation - Online

This curriculum teaches the fundamentals of valuing public and private companies through a case study approach. It covers the different methodologies and focuses on the Discounted Cash Flow (DCF) method as participants build a DCF analysis for an actual acquisition, using each component of the DCF model: projected free cash flows, Weighted Average Cost of Capital (WACC) and terminal value. The program concludes with an introduction to sensitivity and scenario analysis, which is used to improve the base case valuation.

Please note that this is a curriculum of individual course modules. You will need to pass each module exam in order to qualify for a certificate of completion.

This is an asynchronous eLearning program that can be accessed 24/7 from any internet enabled computer.

• Identify the rationale and scenarios for doing business valuations.
• List the roles played by the public markets in business valuation.
• Recognize the different methods used to value businesses.
• Identify three reasons why the DCF model is the method of choice for valuing businesses.
• Describe the difference between cash flow and free cash flow.
• List the differences and similarities in the direct and indirect methods of determining free cash flow.
• Recognize the value drivers of free cash flows.
• Identify components of the calculation of free cash flow from the value drivers, using the direct method.
• Define leverage in terms of its influence on the WACC.
• Determine the elements necessary to calculate the after-tax expected cost of debt.
• Recognize the elements of the CAPM formula.
• Describe the role of beta in determining the cost of equity.
• Calculate the expected cost of equity and WACC.
• Define terminal value and its role in company valuation.
• List and describe each of the methods of determining terminal value.
• Describe the factors that influence the choice of valuation method.
• Recognize the components of Total Entity Value and its relationship to the Value of Equity.
• Calculate the per-share value of equity.
• Using the DCF approach, determine whether or not the Keebler acquisition added value to Kellogg's.
• Identify the impact of changes in value drivers, WACC and terminal value assumptions on a base case valuation through sensitivity analysis.
• Describe the use of scenario analysis to improve a base case valuation.
• Recognize limitations of the DCF methodology.