Course description
Valuation Fundamentals and Trading Comparables (1 day)
Valuation Fundamentals
The session lays the foundations to build a solid understanding of corporate valuation in the context of investment banking. The most common valuation methodologies are introduced, explaining the difference between a company's fundamental value, and how much an acquirer would pay for the business. The concepts of enterprise value and equity value are explained, using simple but rigorous exercises. Finally, the basics of multiple valuation and discounted cash flow valuation are introduced. Exercises are used throughout the session.
Trading Comparables Fundamentals
The session focuses on the details of comparable company analysis. Multiples are calculated on both a historical and forecasted basis and participants will assess the value of the case company based on a given set of comparables. Public information books (‘PIBs’) are used throughout the session.
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Upcoming start dates
Suitability - Who should attend?
- New hires who have joined the firm late and missed the in-house program
- Individuals looking to fill a knowledge gap
- Experienced bankers looking to refresh their technical skills
- Teams employed in financial strategy roles from non-banking corporations
- Graduates preparing to interview for a role in the finance sector
- Students at business school and looking for a career in finance
Prerequisite
A solid understanding of the topics covered by our courses in Financial Statement Analysis and Financial Modeling are desirable:
Financial Statement Analysis
- Accounting Fundamentals, the Income Statement and Working Capital
- Non-Current Assets, Cash Flow Statements, Debt and Equity
Financial Modeling
- Financial Modeling - Fundamentals
- Financial Modeling - Cash Sweep and Troubleshooting
- Financial Modeling - From Scratch
Training Course Content
Valuation Fundamentals
Learning Outcomes
- The importance of valuation in the investment banking industry
- Fundamental value vs. how much an acquirer will pay
- Overview of the major valuation methods
- Trading comparables analysis
- Discounted cash flow analysis
- Transaction comparables analysis
- LBO analysis
- Enterprise vs. equity value
- Book values vs. market values
- How to calculate enterprise value using market values
- How to calculate enterprise value using a fundamental valuation approach
Trading Comparables Fundamentals
Learning outcomes
- Calculating the company’s value
- Number of shares and value of share options
- Equity value
- Net debt calculations
- Enterprise value
- Calculating the earnings numbers
- Cleaning non-recurring items from earnings
- Calendarization issues
- Last twelve months analysis
- Calculating a range of forward looking and historical earnings multiples
- Revenue
- EBITDA
- EBIT
- PE
- PEG
- Other value driver metrics
Course delivery details
While this is a face to face training course, a blended learning approach is taken and delegates will be provided with access to AMT Online. Our study materials contain both the knowledge and practice materials required to assist with the learning process and help you in your job role. Course materials include:
- e-binder
- laminated summary sheets
- 24/7 access to DELTA online learning environment
- class recordings
- course notes
- quizzes
- electronic homework/study files
Reviews
Average rating 4.8
Very well paced, excellent instructor, easy to follow and the best part was the practical exercises that gave us good practice.
The trainer was a great trainer, great pace and clarity. Useful tips!
The trainer is very experienced. Had a fun experience in the class.