Equity Valuation and Analysis

Course description

This intensive 2 day course will equip you with the skills required to evaluate companies and assets. The programme is conducted by a former City analyst and chartered accountant with many years of training experience and voted the Best Speaker for 6 years when conducting training for FT Knowledge.

The course starts with an overview of different equity valuation methods and fundamental analysis. Working through models and case studies based on real companies you will have a chance to go through various techniques including multiples, DCF and changing capital structure. We’ll also consider the practical applications and limitations of the different valuation models.

This is computer based workshop so participants have to bring a laptop with them.

What will you learn

By the end of this course you will be able to:

  • Differentiate and apply the main types of equity valuation
  • Evaluate balance sheet as well as profit and loss accounts and cash flow statements
  • Use comparative company valuation and calculate multiples in practice
  • Have an understanding of the DCF model structure and how it is used to value a company in practice
  • Learn the fundamentals of future cash flow valuation
  • Calculate the cost of capital
  • Understand the basics of discount rates and periods
  • Build the bridge between enterprise and equity valuation

Main topics covered during this training

  • The core valuation approaches:enterprise and equity value
  • Calculating key multiples: EBITDA; EBIT; P/E; P/E/G
  • Calculating operating and credit ratios
  • Analysing trading and transaction comparables
  • Corporate analysis and financial statements review
  • Calculation and interpretation of key ratios
  • DCF valuation
  • WACC and terminal value calculation
  • Case studies and exercises throughout the programme

Who should attend

From Corporates, Banks and Financial Institutions, Investment Funds, Accounting, Consulting and Legal companies

  • Equity Research, Analysts and Sales
  • Equity Capital Markets
  • Investment Managers
  • Members of M&As Departments
  • Corporate Financial Managers
  • Corporate Development
  • Corporate Finance Lawyers
  • CFOs and Finance Directors and Managers
  • Accountants
  • Analysts

Equity Valualtion & Analysis - A 2 Day Course 

Day 1

Valuation fundamentals

The session intends to explain how to build a solid understanding of corporate valuation. The most common valuation methodologies are introduced, exercises are used throughout the session.

Key topics:

  • The importance of valuation
  • Overview of the major valuation methods

– Trading comparables analysis

– Discounted cash flow analysis

– Transaction comparables analysis

  • Enterprise versus equity value
  • Book values versus market values
  • Derivation of enterprise values using market values
  • Case Study: Valuation of a company based on different methodologies

Trading comparables

Participants are introduced to preparing multiples using real company data and a case study including a range of international companies. We focus on how to select comparables, where to find data in published financials and equity research reports, how to clean the raw data, and how to document and check the output.

Key topics:

  • Screening companies to identify a suitable comparable set
  • 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 and resulting tax adjustment

  • Calculating a range of forward looking and historical earnings multiples

– Revenue; EBITDA; EBIT; P/E; P/ E/G

– Industry-specific multiples

  • Calculating and using operating and credit ratios
  • Troubleshooting and checking the output
  • Applying the results
  • Case Study: Valuation of a retail company

Deeper into equity analysis and forecasting

Participants look closely at income statements, balance sheets and cash flows to understand the key drivers of fundamental analysis.

Key Topics

  • Difference between trading multiples and multiples from precedent transactions
  • Selection of transactions and information gathering
  • Control premium and synergies
  • Practical issues with transaction

– Decomposition of results

– Return on equity

– Return on assets

– Du pont analysis

– Gross, net and EBIT margins

– Weighted average assets

– Margin and ratio analysis

We finish Day 1 with a practical exercise on long term forecasting

Day Two

DCF valuation

Participants learn how to build a discounted cash flow valuation model. The session starts with an overview of the valuation methodology, and the steps required in setting up a valuation model. We then focus on the calculation of free cash flow. We analyze the weighted average cost of capital, calculate terminal values, using both the exit multiple method and the perpetuity growth method. We discount the free cash flows to arrive at enterprise values and calculate the implied share price. Once the valuation is complete participants perform several checks on the analysis using key ratios, and sensitivity and scenario analysis.

Key topics:

  • Calculating unlevered free cash flows
  • Drivers of cash flow

– Ratio analysis

– Weighted average cost of capital

  • Optimal capital structure using peer analysis
  • Establishing the company’s forward looking cost of debt

– Cost of equity: understanding the risk free rate, the equity risk premium and beta

– Unlevering and relevering the beta

– Calculating WACC for the case company

  • Calculating the terminal value

– Perpetuity growth (Gordon Growth model) method

– Exit multiple method

  • Building a discounting model

– Mid-year adjustments

  • Calculating enterprise and equity values
  • Sanity checks

– Reinvestment rate and ROIC

– Implied multiples and growth rates

– Percentage of value in the terminal calculation

Higher Skills

Participants are introduced to ways to refine valuation models and avoid typical problems. Amongst the topics we’ll consider are:

  • Sector analysis
  • The economic cycle
  • Valuing growth
  • Indications of insolvency
  • Window dressing and financial shenanigans
  • Hoe the presentation of financial statements influences interpretation

We finish with writing an equity analysis note. You will learn how analysts use their valuation inputs to arrive at an opinion on a company.

 

Trainer

Andreas designs and delivers courses in finance around the world. He has led programmes on valuation and equity analysis at CSFB, Barclays, the London Stock Exchange, Reuters, HSBC and IBM.

Andreas also provides individual coaching on communications and technical areas to a FTSE100 company board director and senior partners at ‘magic circle’ law firms. He’s also written eighty modules on corporate finance and company valuation for Intuition.

Andreas was a director of training at FT Knowledge and was voted Best Speaker at the internationally-renowned Financial Times Intro to the City Programme for six years running. Andreas began his career working for PWC in London where he qualified as a Chartered Accountant. He then worked as an equity analyst in the banking sector at Goldman Sachs. At BNP Paribas he was responsible for editing and signing off equity research.

The Financial Times published Andreas’ book The Devil’s Deal. It’s a thriller that teaches readers how the financial markets work. FT Prentice Hall selected The Devil’s Deal as one of its six key books for 2012 and it featured in the WHSmiths Top 20 Business Books. Translation rights have been sold in nine territories, including China, Korea and Japan.

Andreas has a first in English from Leeds and a Master of Studies from St Catherine’s College, Cambridge. He regularly trains in Spanish.

 

FAQ

We offer banking and finance courses as well as soft skills and business management training. You can either attend an open public course in London or Dubai or arrange customised in-house training to be delivered in any of your offices worldwide.

Most of our public courses are run over 2 full days. Some programmes are offered as a 1 or 3 day training.

In-house training is tailored to client’s requirements and can be organised over 1 day, 2-3 weeks or longer.

Public courses are organised mainly in London and Dubai. Occasionally we organise courses in other centres like Paris or New York. Check our public course calendar for the current list of programmes. We use a range of training venues, all in the centre of the cities and with excellent transport links to the airports and train stations.

In London we use venues in the centre (near Oxford Circus station or in Mayfair) or in the City (near Liverpool Street or Moorgate stations).

In Dubai our courses are organised in one of 4-5* hotels in the Deira district. Once you register we will send you detailed information together with accommodation options if required.

Our in-house courses can be delivered anywhere in the world. We work with over 25 trainers worldwide. Contact us do discuss your requirements. Check our list of available programmes.

Our courses are run in central locations from 9 a.m until 5-5.30 p.m. There are 2 coffee breaks and a lunch break. Lunch is always provided in the venue.

Dress code is smart casual.

All our programmes are taught by senior specialists who have spent many years in their respective sectors, working as senior managers and head of departments, so they understand very well the market and the challenges you are facing.

The experience of our trainers allows us to create very practical programmes, focused on current market trends and challenges. You can be sure that you will gain the knowledge which can be instantly applied in your workplace after the course. You will be analysing real life case studies, take part in group exercises and discussions as well as role plays, whenever applicable.

We want our courses to be as practical and interactive as possible so we limit the number of participants in order to optimise your time with the trainer and allow you to ask questions which are important for you.

In order to understand your requirements and expectations, we will send you a pre-course questionnaire.

You will also receive post-course support so if you have any questions after you left the training, you are welcome to contact us.

There are 2 easy ways to register:

  1. Go to the course of your choice and click Register Now button to fill the registration page
  2. Email us to enquiry@eurekafinancial.com

After you register, we will send you registration confirmation and an invoice so you can arrange the payment. Please note that your place is not confirmed until we receive it.

If you register within Early Bird discount period, there’s limited time to arrange the payment in order to be eligible for the discount. You will find all the details on the invoice.

We don’t advise to make any travel and hotel arrangements until you receive full course confirmation from us.

We will send you venue and course details as soon as possible but most likely about 3-4 weeks prior to the course commencement.

You can pay by:

  • Making a bank transfer
  • Debit/credit card
  • Cheque payable to Eureka Financial Ltd. - only within UK

Just mark preferred paying option on the registration form. Whichever form of payment you choose we will always send you an invoice.

If you pay by card, a 2.2% processing fee will be added. We will send you authorisation form so you can give us your card details.

Included in the price of a public course are:

  • Course tutorial
  • Take away course materials
  • Course Certificate
  • Lunch on the days of the training as well as drinks and snacks throughout the course

The price doesn’t include accommodation, flights, transfers and any additional costs outside of the training venue.

Yes, we always offer Early Bird discount, so the sooner you register the more savings you can make. We also offer group discounts and if you register for 2 or more programmes at the same time.

If you are a full time student or unemployed, we offer a 25% discount of the full price of the training. Student ID or unemployment status confirmation is required to claim this discount.

If you attend one of our courses you will be entitled to a special discount for a year after the last course you attend with us. Also, if you have attended and recommended us to a friend, both you and your friend will receive a special discount. You will receive more information about it after you attend the course.

See our Customer Loyalty Discounts page for more details.

All our courses based in the UK are subject to the VAT charge of 20%. This fee is irrespective of the country of residence of the delegates.

You can, however, claim the VAT back by contacting UK tax office - HMRC, and filling the relevant form, as long as you comply with the following rules:

For Delegates coming from the EU countries

If you represent a registered business in another EU country, you can use the Refund Scheme to reclaim VAT you pay in the UK as long as all of the following apply:

  • You're not registered for VAT in the UK and don't have to, or can't be, registered here
  • You don't have a place of business or a residence in the UK
  • You don't make any supplies in the UK

You can find some more information here. In order to claim the VAT you have to fill Form 65.

For the Delegates from Non EU countries

If you represent a registered business in a non-EU country, you can use the Refund Scheme to reclaim VAT you pay in the UK as long as all of the following apply:

  • You're not registered for VAT in the UK and don't have to, or can't be, registered here
  • You don't have a place of business or a residence in the EU
  • You can only use the Refund Scheme if your own country operates a similar scheme and makes it available to UK businesses. If your country has its own Refund Scheme but doesn't let UK businesses use it, you can't claim under the UK Refund Scheme.
  • You don't make any supplies in the UK

If the following rules apply to you, please fill the 65A form and send it to HMRC.

Webinars

You can cancel your participation up to a month before the course and receive a refund minus 10% of the full course value. Between 2-4 weeks before the course you will be charged 50% cancellation fee and if you cancel less than 2 weeks before the course you can only offer your place to a colleague. Up to 2 weeks before the course you can reregister for another edition for 10% reregistration fee if there is another webinar offered or you can rebook for a course in London by paying the difference in price plus 10% reregistration fee.

Classroom Courses

If there is any official travel restriction or difficulty related to the COVID pandemic around the time of the course we will convert the training into a webinar or offer to attend the next classroom edition at no extra cost.

If you are unable to attend the course, you can either send a replacement at no extra charge or, up to 10 days before the training, you can transfer your booking to another edition within the next 6 months paying administrative fee of 20% of the full course price. For any cancellation requests received between 11 days and 4 weeks from the course we offer 50% refund or reregistration to another edition for 25% of the value of the booking. For any cancellation requests received more than 4 weeks before the course date we will offer a refund less an administration fee of 10% of the full course price.

Cancellations must be made in writing (letter or email) and reach our office four weeks prior to the course date. We regret that only limited refunds can be given after this period as per points above. Non-attendance without any notification will be charged at full rate. Your place on a course is not guaranteed until we receive the payment. All payments must be made in full before the course date.

All our trainers have been working for many years in their respective sectors before they begun to teach so they bring a wealth of practical experience to the classroom.

Most of them used to work for 15 or more years in the financial sector and corporate world, and were holding positions of Directors, VP and Senior Managers. Some of them have published books and have written articles for specialised magazines and newspapers including FT, The Independent, The Times etc. You can find detailed biography of each trainer on the page of the course you want to register for.

Yes, you will receive a Certificate of Attendance at the end of the course you attend.

If you have to apply for a Visa to attend a course in the UK, we will issue a letter to support your application. The letter will be issued only after the payment for the course has been made.

It is delegate’s responsibility to obtain a Visa and failure to do so will not make the participant exempt from the cancellation policy.

Anyone suspected of applying for a training course simply to gain a Visa letter will be reported to their embassy.

We will need the following information to issue an invitation letter:

  • Full name as it appears on your passport
  • Date of birth
  • Passport number
  • Passport issue date
  • Passport expiry date

This topic can be arranged on in-company basis. If you have a group of 4 or more we can customise it and deliver in any location worldwide. Contact us to discuss your requirements

WHAT PAST DELEGATES SAY

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