Essentials of Business Valuation - Day

This one-day course enables participants to achieve a solid understanding of the fundamentals of business valuation. It lays the theoretical groundwork for how businesses are valued, and applies these concepts to actual business valuations in the marketplace using case studies.

17-Jun-2008 -- 17-Jun-2008New YorkUSD$1475
NY Institute of Finance - Downtown9:00am - 4:30pm Instructional Method:
Group-Live
Instructor(s): [ Richard Malekian; ] Tue Level: Basic
CPE Credits: 14.0

29-Oct-2008 -- 29-Oct-2008New YorkUSD$1475
NY Institute of Finance - Midtown9:00am - 4:30pm Instructional Method:
Group-Live
Instructor(s): [ Richard Malekian; ] Wed Level: Basic
CPE Credits: 14.0

18-Nov-2008 -- 18-Nov-2008New YorkUSD$1475
NY Institute of Finance - Midtown9:00am - 4:30pm Instructional Method:
Group-Live
Instructor(s): [ Richard Malekian; ] Tue Level: Basic
CPE Credits: 14.0

01-Dec-2008 -- 01-Dec-2008New YorkUSD$1475
NY Institute of Finance - Midtown9:00am - 4:30pm Instructional Method:
Group-Live
Instructor(s): [ Richard Malekian; ] Mon Level: Basic
CPE Credits: 14.0

Individuals in credit, investment banking, corporate finance, and sales and trading.
No advance preparation required.
Students will be able to:
  • Describe shareholder value creation
  • Create a framework for choosing the appropriate valuation technique
  • Highlight the benefits and pitfalls of the different methods of valuation
  • Calculate the cost of debt and WACC
  • Value companies using the Gordon Discount Model
Introduction to Business Valuation
  • Why determine a business valuation?
  • How methodology affects results
  • The role of the public markets in business valuation
  • Common valuation methodologies

DCF Valuation

  • Cash flow vs. free cash flow
  • Determining free cash flow: direct and indirect methods
  • Reconciling free cash flow with the consolidated statement of cash flow
  • Value Drivers
  • Projections

Determining the Weighted Average Cost of Capital (WACC)

  • Introducing the WACC equation
  • Calculating the after-tax expected cost of debt
  • Using CAPM to calculate the expected cost of equity
  • Calculating the WACC
  • The effect of leverage on WACC

Determining the Terminal Value

  • Defining terminal value and its impact on the DCF valuation
  • Methods for determining terminal value
  • Example

Case Study DCF Approach

  • Measuring shareholder value creation
  • Discounting to find the value of operations
  • Enterprise Value
  • Market Value

Limitations of DCF and Improving the Base Case Valuation
  • Sensitivity of DCF valuations to the assumptions made
  • Using sensitivity analysis to improve the base case valuation
  • Scenario analysis and Monte Carlo simulations

LBO Based Valuation Models

  • Rationale
  • LBO Structure
  • Equity
  • Mezzanine Debt
  • Senior Debt
  • Case Study LBO Valuation
  • Implications

Comparables Based Valuation Techniques

  • P/E
  • Enterprise Value / EBIT
  • Operating Multiples
  • Typical “Comps Sheet”
  • Case Study

Options Value Based Pricing

  • Implications of Options in Underlying Value of the Firm
  • Options Pricing Models
  • Advantages / Disadvantages
  • Case Study

Clients who register for this course will receive a complimentary 6 month subscription to the Financial Times and FT.com. The Financial Times is the world's most respected financial newspaper, providing a broad assessment on finance, business and the industrial sector. Subscriptions will start within 6-8 weeks of the application process and are limited to one per client. For questions about your subscriptions call 800-628-8088 or email uscirculation@ft.com. US and Canada enrollees only.

Lunch included for all students taking day classes.