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Who should attend
- Investment bankers
- Fund managers
- Equity analysts
- Equity traders
- Equity sales
- Corporate finance lawyers
- Credit analysts Strategists
- Treasurers and finance directors
- Compliance officers
About the course
Understand the building blocks of financial analysis for corporate valuation
This comprehensive 5-day programme comprises two days of training in financial analysis underlying corporate valuations, followed by the three days of training in corporate valuation techniques.
The 2-day introduction will provide you with an understanding of:
- How to analyse a firm’s financial statements when undertaking corporate valuations, including how to derive underlying earnings and cashflow
- Ratio analysis, including profitability, performance, leverage, liquidity, returns to firm and equity
- The impact on valuation of debt, financial assets, quasi-debt, provisions, deferred taxes, off balance sheet liabilities and other factors
The subsequent 3-day training covers the following:
- Valuation fundamentals Equity and EV multiple valuations DCF valuations
- Applying different valuation techniques and forecasting, using Excel
- The impact of capital structure on valuation
- The impact of corporate finance transactions on valuation
- How qualitative factors influence valuations
On completion of the programme, you will be invited to attend the three-day Advanced Valuation course to take your knowledge even further.
This practical course combines formal lectures combined with practical and interactive case studies and exercises to reinforce the concepts covered in each teaching session. Emphasis is placed on you gaining hands-on experience of the various valuation techniques.
Income statement analysis
- Cleaning up the reported results to derive underlying performance
- Adjusting for exceptional and non-core items – restructuring, provisions, impairments, discontinued items, MTM of financial assets and liabilities, disposal gains/losses, employee benefits (IAS 19), business combinations (IFRS 3), leases (IAS 17), customer loyalty programmes (IFRIC 13)
- How failing to calculate the correct underlying earnings figure will materially distort your valuation
- Revenues and earnings – sources, sustainability, growth outlook, main risk factors
- The nature of the cost base including sources of volatility (commodity prices, currency, regulation, interest rates, tax rates and other risk factors)
- The impact of hedging (currency, interest rate, commodity)
- The impact of joint ventures, associates and NCI
- Calculating key financial ratios from the income statement; calculating performance ratios
- Analysing the cashflow profile of the firm
- What are the main risks to the cashflow?
- What are the main sources and uses of cash?
- Are new investments adding value?
- Are earnings converted into operating cashflow?
- The impact of net working capital changes and capital spending
- What is the potential for paying dividends and for share buybacks?
- Calculating key financial ratios from the cashflow statement
Balance sheet analysis
- The nature of the asset base: PP&E, intangibles, financial assets, joint ventures and investments
- Understanding the firm’s capital intensity and operating leverage
- Consolidation policies – is there any value in off balance sheet entities?
- What to include in gross debt
- What to include in net debt
- Valuation adjustments for derivative assets and liabilities, operating leases, contingent liabilities, and other off balance sheet liabilities
- Valuation adjustments for NWC, deferred taxes, pension deficits, provisions
- What is the outlook for impairments or revaluations?
- Is the book value of equity important to the valuation?
- What is the impact of credit metrics (leverage, interest cover, interest rates, liquidity, covenant breaches) on valuation?
- Calculating key balance sheet ratios to assess a firm’s financial position relative to its sector
- Overview of major new IFRS accounting standards (IFRS 9, 15, 16)
- Accounting tricks to enhance profitability and operating cashflow
Overview of a forecasting model for valuation
- Creation of key value drivers, including macro-economic and company specific
- Building up the income statement and balance sheet
- Deriving the cashflow statement
- Deriving cash available for distributions
- Dealing with circularity
- Scenario analysis
- Return analysis
Former Executive Director of CSFB and Lehman Brothers, the Course Director has spent seventeen years working as an investment banker in Europe and the US. She has principally worked in the credit markets and has experience of the US and European high grade and high yield markets, the European new...
Videos and materials
Because of COVID-19, many providers are cancelling or postponing in-person programs or providing online participation options.
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