Three Statement Modeling & Valuation Program in Dubai & Abu Dhabi, UAE

Whether the objective is to value a company for an investor or for a Merger & Acquisition (M&A) transaction, the program covers all aspects of valuation using real-life case studies and valuation models.

Learning objectives

Understand the drivers of corporate value: cash, growth & risk
Understand components of a company’s enterprise value
Calculate equity value from enterprise value (EV) and vice versa
Calculate a company’s weighted average cost of capital (WACC) and its components
Learn and apply discounted cash flow valuation tools
Learn and utilize multiples-based valuation tools
Perform scenario and sensitivity analysis for valuation outputs

Who should attend

Professionals and graduate students working or aspiring to work in the field of asset management, investment banking, sovereign wealth funds, private equity, corporate finance, portfolio management and equity research.

Agenda

Day 1

Introduction to corporate valuation

Difference between Enterprise value and Equity Value

Understanding and calculating Enterprise Value and its components

MV of Equity – incorporating ESOPs dilution and in calculating NOSH
Balance Sheet Debt and Off Balance Sheet Debt – Leases
Joint ventures and associates
Non-Controlling Interests
Cash & Equivalents

Exercise: Delegates will calculate EV for two comparable large publicly traded company in excel using the data from their annual report

Introducing the case study company

Model design and structure for the case study company
Know the key model outputs and their drivers
Understand the requisite inputs
Developing cell styles for model transparency and review

DCF Valuation

Understanding FCFF and FCFE
Choice of forecast horizon and forecasting key drivers of free cash flows
Understanding the key inputs and calculating WACC
- Cost of Equity:
  - Choice of risk free rate
  - Beta (raw and adjusted)
  - Market risk premium
- Cost of debt:
  - yield vs coupon
  - pretax or after tax
- Choice of weights:
  - target capital weights Vs current

Day 2

Calculating and performing sanity check for the terminal value using:

growth rate method
multiple method

Calculating the enterprise value of the company:

PV of future free cash flows
terminal value

Calculating Equity value form Enterprise Value : EV to equity bridge

Performing sanity checks to the equity value derived from the DCF value

Adding scenario and sensitivity analysis tools to the DCF value

Exercise: Delegates will provided with an existing excel valuation template, wherein they will input the right set of numbers for a publicly traded company and perform the DCF valuation and its sanity check

Multiples based valuation:

Different types of valuation multiples:
- P/E
- P/B
- P/S
- EV/EBITDA
- EV/Sales
Drivers of valuation multiples – Why some companies trade at premium, others at a discount
- Cash, growth and risk analysis
Selecting the right set of multiple to value the subject company – price based or EV based
Selecting the right set of peer groups to value the subject company
Cleaning and normalizing the operating metrics (EPS, EBITDA, etc.) for the comparable universe before calculating the multiples
Using historical (TTM) or forward looking multiples
Calculating cleaned set of multiples for the peer group and using the same to value the subject company
Converting EV to Equity value when using EV based multiples
Using prior transaction multiples

Exercise: The delegates will perform trading multiples based valuation for the subject company from day 1 for which they have already performed the DCF based valuation

Upcoming dates

Currently there are no public classes/sessions scheduled for this course yet. For any in-house or private training, please contact us.

Corporate Valuation using excel