Relative/ comparable valuation course – 1 day
- Introduction: valuation camps
- Comparable valuation in context
- Introduction to and discussion of common valuation techniques
- Comparison of comparable with absolute (DCF) valuation
- Pros & cons of comparable valuation
- Choosing comparable companies
- Manipulating comparable company analysis
- Issues in choosing comparable companies
- Stepping through comparable company analysis – the process
- Sources of info
- Keys to selecting comparables
- Comparable analysis: pitfalls
- Selecting multiples
- Overview of common multiples
- Which strip out variability? Which are more volatile?
- Normalising earnings and source data
- Key issues in source data: getting to harmonised and maintainable earnings, making use of data available to the market
- Cleaning the numbers
- Key adjustments
- Discontinued operations
- One off & exceptional items
- Tax effects
- Pensions and other items that look like finance costs
- The role of judgement & detective work
Case exercise – cleaning the numbers. Delegates work from a set of accounts and adjust to get to underlying profitability
- Summary: cleaning the numbers – a check list
- Defining firm value and calculating multiples
- Enterprise vs. shares value
- Routes to valuation/ applying it in practice
- Key adjustments e.g. provisions and minority interests
- Overview of common multiples
Case exercise – equity to enterprise value. Delegates work from a set of accounts to reconcile equity and enterprise value, adjusting for debt, cash, provisions and minority interests
- Discussion – multiples – which are more volatile? Which is best when?
- Applying it in practice
Enquire about an in-house relative valuation course
Financial Training Associates’ valuation courses are all run “in-house”. If you have 4-5 staff who are interested in a valuation course, in-house training will prove cost-effective for your company. To enquire about an in-house valuation course for a small group of your company’s employees, please click on the blue “enquire” button:
Book on a public valuation course
Financial Training Associates offers a mix of in-house and public courses. For details of our public courses (which accept individual registrations), and to book yourself on a program, please click on the red “book” button:
Financial Training Associates’ valuation & corporate finance courses
For further details regarding Financial Training Asssociates’ valuation courses, please see our corporate finance course page.
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