Principles of Valuation & Financial Analysis

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12 Oct London

Early Bird offer till 15 September: £750 + VAT

After that date £820 + VAT

Course Description

One day core course for beginners to help them understand the key types of valuation techniques and how to analyse a set of financial statements. 

Course Objectives:

  • To provide an introduction to the fundamental valuation framework used to value the equity of a company
  • To explain the theory of valuation and the enterprise and equity approaches to valuing a business
  • To examine the types of valuation tools used in practice and calculate various types of valuation through the use of a case study
  • To evaluate a balance sheet from the perspective of a shareholder
  • To explain how to assess the profit and loss account and cash-flow statements 
  • To enable participants to calculate and interpret the key ratios that highlight the dynamics and risks of a business

Course Level: Introductory

This course is relevant for participants who require a basic, first stage understanding of valuation and financial analysis.

Prerequisites:

To attend this course, participants should have a working knowledge of accounting.

Check our other modules if you search for more advanced options or want to learn more about equity valuation and analysis.

What Will You Learn

By the end of this training you will be able to understand and apply:

  • Fundamental valuation framework used to value the equity of a company
  • Enterprise and equity approaches to valuing a business
  • Tools used in practice and calculate various types of valuation 
  • Evaluate a balance sheet from the perspective of a shareholder
  • Assess the profit and loss account and cash-flow statements 
  • Calculate and interpret the key ratios that highlight the dynamics and risks of a business
 

Main Topics Covered During This Training

  • Core valuation approaches: equity and enterprise value
  • Operating and financial items in the financial statements
  • Non-operating items and their treatment
  • Relative and absolute Valuation tools in practice: DCF, EVA, APV, P/E, EV/EBIT, EV/EBITDA
  • Calculation and interpretations of the key ratios
  • EPS derivation and interpretation
  • Interpreting the value drivers of the business

Who Should Attend

This course is relevant for participants who require a basic, first stage understanding of valuation and financial analysis.

Register Now

12 Oct London

Early Bird offer till 15 September: £750 + VAT

After that date £820 + VAT

Principles of Valuation & Financial Analysis - One Day Module

Fundamental framework

  • Returns and capital, consistency and interaction
  • The core valuation approaches
  • Enterprise value – value to the firm
  • Equity value – value to the shareholder
  • The bridge between enterprise and equity value
Valuation to operations
  • The accounting and market-based approaches
  • Calculating enterprise and equity values
  • Non-operating items
  • Operating items in the financial statements
  • Financing items in the financial statements
  • Definitions of non-equity finance

Non-operating (non-core) items

  • Typical non-operating items
  • Treatment of non-operating items
  • Non-operating items in the financial statements
  • Incorporating non-operating items into a valuation
  • Cleaning the numbers
 
Valuation tools in practice
  • Absolute valuation tools overview (DCF, EVA, APV)
  • Relative valuation tools overview (P/E, EV/EBIT, EV/EBITDA)
  • Market-based valuation approaches
 
Case study: Participants calculate various types of valuation using a set of accounts
 
Financial analysis
  • Calculation and interpretation of the key ratios which highlight the principle operating and financial dynamics/risks/flexibility of the business 
  • EPS derivation and interpretation (including dilution)
  • How to interpret the value drivers of a business, its operating performance and business and financial risk
  • Company specific transactions, including share issues, purchase of own shares, capital reduction
 
Case study: Participants calculate and interpret the key ratios for a quoted company

The course director is a qualified chartered accountant who begun his career in Grant Thornton International and since 1986 worked in  Ernst & Young as a senior manager in the corporate advisory team, working on major acquisitions, disposals, IPOs and insolvency/restructuring transactions.

In 1989 he joined Threadneedle Asset Management as an analyst, becoming a fund manager specialising in income funds in 1991. He was a member of the team that won the Sunday Times Unit Trust Group of the year award in 1992. In 1996 he joined Scottish Widows Investment Partnership as a director in the UK Equity team, again specialising in income funds. On becoming head of UK Equities in 1998, he introduced a new investment process incorporating cash flow based corporate valuation techniques. In 2000 he was appointed head of UK Equities when Scottish Widows was acquired by Lloyds Bank and he led the integration of the UK Equity teams.
 
In 2001 he joined HSBC Asset Management as European Head of Equity Research, managing a team of analysts in Paris and London tasked with developing a new research team and research process.In 2004 he was appointed Global Head of Equity Research, responsible for 60 global equity research analysts and 40 global credit analysts. He developed a global valuation and research process, training local analysts in Europe, the US and Asia in its use.
 
In 2006 he joined BG Consulting Group, a professional training company, as the head of investment banking and investment management. He managed a team of 12 trainers and built a blue chip customer base. His experience at BG included managing major graduate programmes for investment banking and investment management clients, training graduate to managing director level participants and advising clients on their training requirements for accountancy, corporate finance and valuation, investment management and private wealth training. 
 
In his role as a chartered accountant he was a member of the committee advising the UK Accounting Standards Board corporate reporting. He is a freelance writer for various investment publications and provides corporate finance and investment management advice to companies on freelance basis. His clients have included HSBC, Morgan Stanley, Deutsche Bank, Citigroup, Allen & Overy, JP Morgan, Barclays Bank, Barclays Wealth, Morgan Stanley Investment Management and Schroders.

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Principles of Valuation & Financial Analysis <p>One day&nbsp;core course for beginners to help them understand the key types of valuation techniques and how to analyse a set of financial statements.&nbsp;</p> <p><strong>Course Objectives:</strong></p> <ul> <li>To provide an introduction to the fundamental valuation framework used to value the equity of a company</li> <li>To explain the theory of valuation and the enterprise and equit ... 1413072000 London