Corporate And Asset Valuation: Approaches, Inputs And Issues

This course provides an overview of valuation, and the principal methods used to value firms or any flow producing asset

What you'll learn

Define critical valuation terms.

Discover how a company can be valued relative to its competitors using several common metrics.

Discover how to evaluate company Betas, and to subsequently un-lever or re-lever them.

Discover how to compare a derived Enterprise Value from a model to the market.

Requirements

Prerequisite: Experience with business valuation

Advanced Preparation: None

Description

This course provides an overview of valuation and the principal methods used to value firms or any cash flow producing asset.  Relative valuation, commonly known as the “comps” (comparables) approach, is initially introduced, along with several metrics often used to compare competitors. The remainder of the course is focused on the discounted cash flow (DCF) approach to valuation, where three approaches are discussed: 1) the dividend discount model, 2) cash flows to equity, and 3) cash flows to the firm, as well as in what instances each is most applicable. In the process of introducing the DCF approach, we discuss some critical valuation frameworks and tools, including the Capital Asset Pricing Model (CAPM), the Weighted Average Cost of Capital, and the un-levering and re-levering of Beta. The course covers:Critical valuation terms including Enterprise Value, Free Cash Flows, EBITDA, Capital Asset Pricing Model, Beta, and the Weighted Average Cost of Capital.How a company can be valued relative to its competitors using several common metrics including Price-Earnings Ratio, Price to Sales, Price to Book Value, and Enterprise Value to EBITDA.Computing EBITDA (Earnings Before Interest Taxes Depreciation and Amortization) and Free Cash Flows to the FirmRecognizing whether a valuation model should be based upon the cash flows to the entire firm, or the residual cash flows to equity holders.How to evaluate company Betas, and to subsequently un-lever or re-lever them.How to compare a derived Enterprise Value from a model to the market.

Overview

Section 1: Introduction

Lecture 1 Introduction to Valuation

Lecture 2 Relative Valuation Through Comps

Lecture 3 Valuation via DCF Analysis

Lecture 4 Free Cash Flows to Firm and Related DCF

Lecture 5 Discount Rates and Valuation

Lecture 6 Final Accounting Considerations in Valuation

Section 2: Supporting Materials

Lecture 7 Slides: Valuation: Approaches, Inputs, and Issues

Lecture 8 Valuation: Approaches, Inputs, and Issues Glossary Index

Section 3: Review and Test

Anyone interested in Accounting, Finance or related fields.