Company Valuation

Course details

The Company Valuation course has been designed to give you practical experience in preparing valuations under the supervision of the presenter. This will enable you to appreciate the intricacies of company valuations. You will have the opportunity to ask questions and dialogue with our experts, allowing you to practice and become confident in carrying out a company valuation.

Course Objectives:

By the end of the course, participants will be able to:

• Understand the principles of company valuations
• Evaluate the different valuation methods that are used in company valuations and select the appropriate methods for the circumstances surrounding the valuation
• Demonstrate the relationship between the different methods of valuations
• Derive the cost of capital and determine the application of appropriate discounts in arriving at a final valuation
• Utilize what they have learned in the course through hands-on activates in valuing companies, using templates and practice
• Prepare company valuations with confidence

Course Outline:

• Analyzing A Company’s Cash: Fundamental to any valuation exercise is an understanding of the company’s business, its strategy, competitive advantage, and the drivers that affect its cash flows. This workshop looks at operating, investing, and financing activities within a company.
• Methodology: This workshop is designed to examine the different methods that are used for company valuations. It provides an in-depth look at the pidend Discount Model (DDM) and the Discounted Cash Flow (DCF) model, the most commonly used methods for company valuations.
• Cost Calculations:valuations require the use of discount rates to discount the relevant forecasted valuation attribute. This workshop examines how to calculate the cost of capital, the cost of debt, the cost of equity, and the weighted average cost of capital.
• Discounts:This workshop examines the discounts that are often applied to valuations. These include discounts for a lack of control, illiquidity and lack of marketability, and unsystematic risks such as dependence on key personnel and key customers. These discounts are particularly relevant in the valuation of small, private, and public unlisted companies.

Valuation Comparisons:The value of a company is benchmarked against comparable companies. This is referred to as a “compco analysis” and uses pricing multiples that relate the value to some measure of financial performance or financial position.