Valuation Overview

This session lays the foundations to build a solid understanding of corporate valuation. The most common valuation methodologies are introduced, explaining the difference between trading values and transaction values. The concepts of enterprise value and equity value are explained, using simple but rigorous concepts. Finally, the basics of multiple valuation and discounted cash flow valuation are introduced. Numerical exercises are used throughout the session.

Key topics:

• The importance of valuation in the investment banking industry
• Trading value versus transaction value
• Overview of the major valuation methods
  • Trading comparables analysis
  • Discounted cash flow analysis
  • M&A comparables analysis
  • LBO analysis
• Enterprise versus equity value
• Book values versus market values
• How to calculate enterprise value using market values
• How to calculate enterprise value using a fundamental valuation approach