Company valuation course

  • 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

Law CPD courses from training company FTA Ltd

For details of FTA’s training course program please see our list of law CPD courses.