Valuation course

Company valuation course: how to value a business – 2 days

This course is conducted as a workshop where delegates work to conduct a valuation for a company of their choice, using both DCF and comparable/ relative multiples.

Valuation course objectives

The course provides participants with a comprehensive review of company valuation, the main techniques and their inter-relationships. The review covers topics including obtaining raw data for valuation, “cleaning” source numbers, defining and calculating firm value (enterprise vs. equity value), calculating reference multiples, applying multiples to target companies and valuing target companies using standard valuation techniques.

Methodology for the valuation course

Just like they might have to in their jobs, delegates start just with a set of publicly available accounts for the company they are interested in valuing. During the course delegates:

Use publicly available accounts to calculate recurring underlying earnings for their target company
Determine comparable businesses that might form part of the target’s peer group and source information relating to those other businesses
Calculate an appropriate series of valuation multiples for the target business using publicly available data
Learn how to work from equity to enterprise value and back again
Value the target business.

Detailed case study work: participants practise modelling valuation for a target company using both DCF (Discounted Cash Flow) and comparable/ relative/ multiple-based methods. The course is punctuated with detailed case work and exercises, frequent opportunity for discussion as well as “hands on” application of the principles introduced on the course.

Participants will need to bring to class a laptop with active USB port to the course as well as a set of accounts for a publicly listed business they know of but are, as yet, unfamiliar with.