Practical techniques to develop better valuation analysis with more flexible, accurate and structured models.
Developing an efficient and accurate valuation model that is theoretically valid, well structured, flexible and accurate is essential for any professional in finance. Unfortunately, many corporate finance models are biased, clumsy and inflexible rendering the whole valuation process at best meaningless. Taught by Edward Bodmer, a global leader in financial modelling, the intensive 2-day modelling valuation and modelling program will inform finance executives, accountants, financial consultants, and investors on innovative valuation and modelling techniques. Theoretical and applied techniques and implementation issues are addressed for efficiently creating corporate models with flexible history, automating historic data acquisition, accurately modelling depreciation and creating structured assumptions with interpolation. Valuation techniques that deal with unique methods of measuring normalized cash flow, cost of capital, interest tax shields, terminal value from value drivers and effective presentation are covered with hands-on models. A practical case study from India will be used to illustrate the applied valuation and financial modelling concepts.
The programme will be hands-on and highly interactive, and sessions will include combine:
• Seminars in which techniques and ideas are introduced and discussed in detail
• Hands-on Modelling sessions where participants work through practical solutions
• Case Studies in which participants examine ways to avoid pitfalls in valuation and modelling
• Retention of Learning with strategies for continued learning and reinforcement of ideas
• Participants receive a Comprehensive Resource Library filled with financial models, databases, case studies, articles and utilities to make analysis more efficient.
Benefits of Attending:-
- • Understand the theoretical issues with structuring of corporate models, development of assumptions, computation of rate of return on invested capital, risk analysis, valuation formulas, capital structure and other issues
- • Create a structured corporate model that uses and updates historic information in a flexible manner and allows efficient statistical analysis of assumptions
- • Add valuation sections to corporate models that include provisions for changing terminal growth, WACC, multiples and valuation dates; normalise working capital, capital expenditures, depreciation and deferred taxes; and evaluate items that comprise the difference between equity value and enterprise value
- • Resolve tricky issues in terminal value from derived EV/EBITDA ratios that correct for flaws in the value driver (1-g/ROIC)/(WACC-g) formula and consider alternative growth rates; changes in cost of capital and variations in the spread between cost of capital and return on invested capital.
- • Compute equity value from enterprise value through creating proofs of how different items such as deferred taxes, warranty provisions, derivatives, long-term receivables, unfunded pensions and stock options affect the difference between equity value and enterprise value
- • Use corporate models to quantify risks to risks to debt and equity investors using structured scenario analysis, break-even analysis, sensitivity analysis and Monte Carlo simulation
- • Learn Excel techniques including selected user-defined VBA functions to make better presentations from models, to resolve circular references and to make models more transparent and efficient
Who Should Attend?
• Equity research professionals
• Corporate Financial Officers
•GM/VP/AVP/Manager M & A
• CFOs, Treasurers and Senior Finance Executives
• Executives of M&A Team
• Directors of Strategic Planning
• Commercial Bankers
• Investment Bankers
• Portfolio Managers -Corporate Restructuring
• Fund Managers
• Credit analysts at banks and other financial institutions
• Business strategists at corporations
• Compliance officers