CORPORATE
VALUATION TECHNIQUE
Deskripsi
This course alleviates potential
problems by going beyond the fundamentals of corporate valuation, while
equipping you with the latest strategies to help you successfully tackle any
valuation, however complex. Encompassing your existing skills, it will
enhance and expand your knowledge, leaving you with the ability to value
successfully and accurately an entity every time.
The valuation of companies is fundamental to
the operation of the capital markets. It forms the basis of share trading and
corporate finance activity, including capital raising, mergers, acquisitions,
demergers and disposals. The ability of market participants to identify under
or overvalued companies drives out-performance and the creation of shareholder
value.
Objectives
If you are being increasingly faced
with key valuation challenges such as:
·
Making
the decisions to divest, merge, demerge or acquire
·
Assessing
the merits of a value-based planning programme to increase shareholder value
·
Successfully
managing risk
·
Fully
understanding the critical importance of the different costs of capital
OUTLINE
1.
Essential
Elements in Valuation
·
Price
vs value
·
Perspective
of techniques
·
Risk
·
Company
dynamics
·
Return
on capital vs cost of capital
2.
Free
Cash Flow - A Central Concept
·
Importance
of FCF
·
Limitations
of accounting-based data
·
Components
and detailed calculation exercise
3.
Cost
of Capital and DCF Valuation
·
Cost
calculations of the capital components
·
Areas
of controversial debate in deriving cost of capital
·
Discounting
exercise
·
Investment
horizon
·
The
continuing period
·
Debrief
of case
·
Sensitising
valuation analyses
·
Decision-making
using the product of valuation techniques and pricing techniques
·
Application
of DCF in valuation of acquisitions
·
Problems
with emerging markets - adaptations of approach
·
Application
to non-quoted businesses
4.
Pricing
Techniques
·
Pricing
techniques - comparatives
·
Selecting
comparatives
·
Application
to non-quoted businesses
·
P/E
ratios
- The calculation
- The essential adjustments
- The calculation
- The essential adjustments
·
Cash
multiples
·
Total
enterprise value
·
Comparative
ratios
·
Modelling
and sensitising the components
Case Study: Comparative pricing
- Debrief
of case
5.
Dividend
Valuation Model
- Dividend
growth approach
- Practical
problems in its application
- When
dividend valuation should be chosen in lieu of dcf valuation
- Comparison
of results to dcf valuation exercise
6.
Residual
Valuation Matters
·
The
effect of leverage on risk and return
·
Optimal
capital structure
·
Adjusted
present value
·
Project
risk vs company risk
·
Flow-to-equity
alchemy
·
Overview
of project appraisal
7.
Estimating
Future Cashflows and Returns
·
Limitations
of predictive models
·
The
modelling of cost structures
·
Sensitising
the cashflow forecast
·
Establishing
a valuation range
8.
Economic
Value Added
·
The
range of performance evaluation techniques
·
Detailed
calculations
·
Analysis
of results of analysis
·
Market
value added (mva)
·
Correlation
of market price to eva performance
·
Strategic
interpretation of eva analysis
PARTICIPANTS
· Investment bankers
· Fund managers
· Equity analysts
· Equity traders
· Equity sales people
· Corporate Finance Lawyers
· Credit analysts
· Strategists
· Treasurers
· Compliance officers
INSTRUKTUR
Surono, ST, MT
