DCF valuation course – 1 day
- The starting point for DCF (discounted cash flow) valuation
- Forecasting from financial statements and getting to cash flow
- Modelling integrated financial statements
- What makes a good model?
- Model structure
- The benefits of integrated financial statements for valuation
- Key forecast ratios
Modelling – integrating financial statements. Participants complete a partially-developed financial model for the case study which integrates P&L, balance sheet and cash flow, and use this to forecast cash flow for a DCF valuation
- Case study: stand alone valuation
- Absolute valuation
- Calculating free cash flow before financing
- Understanding and calculating WACC
- Conducting a DCF valuation
Modelling – valuation. Delegates calculate the cost of capital and complete a DCF valuation for a case business
- Discussion – calculating WACC:
- Sources for beta estimates
- Obtaining a peer group
- Obtaining interest rates
- Calculating terminal value
- Defining firm value
- How should we define firm value?
- How do we reconcile to “debt free cash free” valuation?
Modelling – firm value. Delegates work from enterprise value and use financial statements to calculate equity value
- Valuing a business post merger
- DCF valuation of the combined business
- DCF valuation of the synergies
- Levering and re-levering beta
- Financing considerations and options
- Modelling capital structure post acquisition
- Determining optimum capital structure
- Quantifying the synergies
- Valuing operating synergies
- Valuing financing synergies
- Analysing the results
- Sense-checking the output
- Drawing the right conclusion
Modelling – post acquisition valuation. Participants model and differentiate between operational and financing synergies for a case study contemplating an acquisition
Enquire about an in-house DCF valuation course
If you have 4-5 staff who are interested in a DCF valuation course, in-house training will prove cost-effective for your company. To enquire about in-house DCF valuation training for a small group of your company’s employees, please click on the blue “enquire” button:
Book on a public DCF 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 valuation programs, please see Financial Training Associates’ corporate finance course page.
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