Valuation Course For New Financial Analysts

Learn the key valuation methods: 1) Discounted Cash Flows, 2) Comparable Trading Multiples and 3) Precedent Transactions

What you'll learn
Master the key valuation tools, which are essential to possess as a financial analyst, as an entrepreneur or as an investor.
Discounted Cash Flow (DCF) Method
Comparable Trading Multiples Method
Precedent Transaction Multiples Method
Requirements
Basic knowledge of Excel
Description
By the end of this course, you will be able to master the key valuation tools using the case study of Microsoft, allowing you to calculate the intrinsic value of any business, whether you want to:1) Upgrade your career prospects in the competitive field of finance and specifically in fields like corporate finance, investment banking, business development, M&A, private equity, etc.,2) Develop a solid business plan for your next entrepreneurship endeavour, or3) Calculate the fair price of a potential investmentIn this course, you will learn exactly how to estimate the value of a business, based on:1) Discounted Cash Flow Method works on the premise that the value of the company stems from its ability to generate free cash flows in the future. It highly depends on the predictions about the future cash flows, as well as the discount rate that will be used.2) Comparable Trading Multiples Method works on the premise that similar companies of similar size, operating in the same industry should trade at the similar valuation multiples (EV/Sales, EV/EBITDA, EV/EBIT, P/E, P/B).3) Precedent Transaction Multiples Method works on the premise that prices paid for similar companies of similar size, operating in the same industry, divided by a financial metric (Sales, EBITDA, EBIT, Net Income, Shareholders’ Equity) should yield similar valuation multiples (EV/Sales, EV/EBITDA, EV/EBIT, P/E, P/B).

Overview

Section 1: Welcome to the Course

Lecture 1 Welcome to the Course

Section 2: Introduction to Valuation

Lecture 2 Valuation and Areas of Application

Section 3: Overview of Valuation Methods

Lecture 3 Assumptions behind each Valuation Method

Lecture 4 Advantages and Limitations of each Method

Section 4: Discounted Cash Flow (DCF) Method

Lecture 5 Introduction to DCF

Lecture 6 WACC

Lecture 7 CAPM

Lecture 8 Beta

Lecture 9 Dividend Discount Model & Terminal Value

Lecture 10 Exit Multiple (EM)

Lecture 11 Introduction to Financial Modeling

Lecture 12 Parameters

Lecture 13 Historicals & Estimates

Lecture 14 Overview of the Model Tabs

Lecture 15 WACC Calculation

Lecture 16 Overview of Income Statement

Lecture 17 Revenue

Lecture 18 Costs

Lecture 19 Fixed Asset Schedule

Lecture 20 Depreciation & Amortization

Lecture 21 Debt Schedule

Lecture 22 Interest Expenses

Lecture 23 Tax

Lecture 24 Overview of Balance Sheet

Lecture 25 Cash & Cash Equivalents & Short-Term Investments

Lecture 26 Cash Conversion Cycle

Lecture 27 Accounts Receivables, Inventory, Accounts Payables

Lecture 28 % of Revenue Accounts

Lecture 29 Steady Accounts

Lecture 30 Fixed Assets

Lecture 31 Debt

Lecture 32 Equity

Lecture 33 Cash Flow Statement

Lecture 34 FCFF & Equity Value

Lecture 35 Sensitivity Analysis

Lecture 36 Links among Financial Statements

Section 5: Comparable Trading Multiples Method

Lecture 37 Introduction to the Comparable Trading Multiples Method

Lecture 38 Sample of Comparable Listed Companies

Lecture 39 Collect Financial Information

Lecture 40 LTM Figure

Lecture 41 Valuation Multiples

Lecture 42 Enterprise Value & Equity Value

Section 6: Precedent Transaction Multiples Method

Lecture 43 Introduction to the Precedent Transaction Multiples Method

Lecture 44 Sample of Precedent Transactions

Lecture 45 Collect Financial Information

Lecture 46 Valuation Multiples

Lecture 47 Enterprise Value & Equity Value

Section 7: Valuation Summary

Lecture 48 Introduction to the Valuation Summary

Lecture 49 Valuation Summary Table & Football Field

Section 8: End of the Course

Lecture 50 Outro

This course is addressed to financial analysts, who want to upgrade their career in the competitive field of finance and specifically in fields like corporate finance, investment banking, business development, M&A, private equity, etc. It is also very useful for entrepreneurs, who want to create a business plan, or investors who need to calculate the fair price of a potential investment.