Financial Modelling Techniques for Valuation Analysis

An accurate and flexible financial model is a critical component to a robust valuation. Financial Modelling Techniques for Valuation Analysis is designed to help you master the financial modelling techniques needed for valuation analysis. This course will see you equipped for a range of scenarios – from internal valuations to the valuation of acquisition targets.

In a combined seminar and workshop environment, Financial Modelling Techniques for Valuation Analysis will illustrate how corporate finance and valuation concepts are brought to life in a financial modelling environment, and how you can build re-usable structures which will benefit you time and time again. The course also covers specific challenges including: dividend policies, depreciation, escalation, working capital, liquidity and minority interests.

By developing a structured approach to business valuation, you will gain the skills required to confidently present your valuation analysis to internal and external stakeholders. Based on SMART, Corality’s financial modelling methodology, the course ensures fully transparent and flexible financial modelling, with a focus on professionally styled presentation.

Financial Modelling for Valuations will enable you to

• Learn robust financial modelling of valuation concepts, from WACC and CAPM to DCF and EBIDTA multiple analysis
• Gain insights into the challenges and recommended approaches to terminal value analysis
• Master best practice financial modelling techniques and Excel functions relating to forecasting, investment analysis and valuations

Required knowledge: Standard Excel functionality and financial modelling

A solid understanding of standard Excel functionality is required, and some familiarity with financial models is beneficial. If you want to extend you understanding of Excel functionality, then the Excel Diploma course may be of interest to you.

In-house course options for valuation modelling

When tailoring in-house courses in valuation modelling and analysis, Corality’s frequently mixes modules from other courses to deliver the exact content required for the participants. This valuation modelling course often benefits from modules from other financial modelling training courses including Visual Basic in Excel. Excel Diploma, and industry specific courses such as the Financial Modelling for Renewable Energy Projects course.

What is financial modelling best practice?

To learn more about Corality’s training courses focused on best practice financial modelling, see our full list of training courses in modelling, valuations and project finance.

Training courses in London, New York, Sydney and more

The Corality Training Academy offers in-house training courses all over the world, and public training course in a range of locations. The most popular locations include project finance modelling in London, New York advanced financial modelling, and in Sydney courses from valuations, project finance and financial modelling.

COURSE OUTLINE

Day 1

Master proven techniques for best practice modelling resulting in better models built faster

• Learn to work with the powerful and easy to follow SMART best practice modelling methodology
• Discuss and identify good vs. bad modelling techniques using real-life examples
• Greatly increase consistency amongst your team in calculation technique and presentation

Design a model structure

• Investigate the key modules of a model: Understand the building block components
• Understand the design flow of the model builder
• Build fluid timing architecture with binary flags suitable for all modules of the model
• Develop a layout hierarchy: Focus on custom styles to ensure a transparent, well presented model

Build a model engine of the target company

• Use best practice to build operations for a company, from revenue to results
• Calculate revenue from multiple units and time variable pricing
• Model operational costs, both fixed variable

Improve your modelling with realistic cashflow impact of working capital and related matters

• Learn how to build working capital into existing models without changing the structure
• Understand the impact of working capital on the cashflow
• Discuss common errors in modelling working capital and ways to model around them

Day 2

Finalise financial statements to make a fully integrated three-way model

• Add capital programme and construct best practice depreciation calculations
• Complete P&L statement and build balance sheet and cashflow waterfall
• Explore the company's net asset position and understand its role in valuation assessment

Calculate the weighted average cost of capital (WACC) using capital asset pricing model (CAPM) for robust valuations

• Discuss the theoretical underpinnings of CAPM and why it is used
• Derive the WACC formula and model it in Excel
• Learn how to estimate betas from actual public market data

Learn key techniques for terminal value analysis in a valuation context

• Understand why terminal value isn't appropriate in some valuation models
• Learn how different factors affect the impact of terminal value on a valuation
• Calculate terminal value using the perpetual growth model and other methods

Complete a best practice discounted cashflow (DCF) valuation

• Discuss NPV from first principles and apply XNPV functionality
• Integrate a dividend policy and restrictions into model and understand its impact on valuations

Build cross-reference valuation techniques to benchmark your discounted cashflow (DCF) analysis

• Learn the pros and cons of using any single valuation technique
• Compare DCF valuation outputs with EBITDA and transaction multiples

Integrate a powerful scenario manager and enable informed decision making

• Save critical time and deliver rapid analysis using our approach to scenario management
• Transform scenarios into yet another way to test the model in all scenarios
• Build confidence in your analysis through pre-programmed combinations of model inputs