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Who should attend the course?

  • New hires who have joined the firm late and missed the in-house program
  • Individuals looking to fill a knowledge gap
  • Experienced bankers looking to refresh their technical skills
  • Teams employed in financial strategy roles from non-banking corporations
  • Graduates preparing to interview for a role in the finance sector
  • Students at business school and looking for a career in finance

Course details

World of Returns

This program focuses on the analysis of returns. First, the importance of returns in relation to value creation is illustrated. The concept of invested capital is then introduced and practical examples are used to show how to calculate the return on invested capital. We then show how to incorporate explicit return assumptions in a DCF model by using the value driver formula to calculate the terminal value. The relevance of returns in an M&A context is also discussed.


Learning outcomes

  • Returns analysis
  • Value creation: what it is and what its drivers are (ROE and ROIC)
  • The concept of invested capital
  • Return on invested capital (ROIC)
    • Relationship between ROIC and WACC
    • Relationship between ROIC and ROE
    • Relationship between ROIC and growth
  • Using ROIC in DCF valuation
  • Value driver terminal value approach
  • Concept of fading returns
  • Impact of returns on M&A analysis

DCF Issues

This session focuses on the alternative terminal value calculation approaches. Delegates model a two stage steady state terminal value and learn how returns fade to WACC over time.


Learning outcomes

  • Re-cap of free cash flows
  • Mid-year discounting adjustments and valuation with flexible deal dates
  • Modeling of the steady state cash flow
  • Traditional terminal value approaches, reinvestment rates and pitfalls in long-term return analysis
  • Understanding the value gap concept
  • Dis-aggregating return on invested capital-profitability and efficiency
  • Alternative terminal value approach: value driver
  • Building a two stage steady state terminal value model
  • Sensitizing the WACC for different capital structures
  • Building a graph of the optimal capital structure analysis



"I like that the public courses are supported by online training. I can learn at my own pace and time, which has helped increase my confidence in the work that I do." ~ research analyst, global financial institution

Course materials

While this is a face to face training course, a blended learning approach is taken and delegates will be provided with access to AMT Online. Our study materials contain both the knowledge and practice materials required to assist with the learning process and help you in your job role. Course materials include:


  • e-binder
  • laminated summary sheets
  • 24/7 access to DELTA online learning environment
  • class recordings
  • course notes
  • quizzes
  • electronic homework/study files

Related courses


A solid understanding of the topics covered by our course Discounted Cash Flow (DCF) Valuation is required.