Sydney

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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

DCF Valuation

Delegates 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. A detailed ratio analysis is used to establish the reasonableness of the forecasts and to identify when the target company reaches steady state. 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 delegates perform several checks on the analysis using key ratios, sensitivity and scenario analysis.

 

Learning outcomes

  • 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 period

Trading Comparables Fundamentals

The session focuses on the details of comparable company analysis. Multiples are calculated on both a historical and forecasted basis and delegates will assess the value of the case company based on a given set of comparables. Public information books (“PIBs”) are used throughout the session.

 

Learning outcomes

  • 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
    • Calendarization issues
    • Last twelve months analysis
  • Calculating a range of forward looking and historical earnings multiples
    • Revenue
    • EBITDA
    • EBIT
    • PE
    • PEG
    • Other value driver metrics
  • Applying the results

 

LBO Valuation

Delegates are introduced to the basic concepts underlying leveraged buyouts. The session starts by establishing why private equity firms can create value through leveraged buyouts and how the levered valuation fits into the valuation roadmap. Using a simple free cash flow forecast, delegates establish how much a financial buyer could pay for the target company. Delegates then build a simple LBO model.

 

Learning outcomes

  • What an LBO is and how it can create value
  • LBO valuation as an alternative valuation methodology
  • Characteristics of suitable LBO candidates
  • Estimating cash flows available to capital holders
  • Estimating debt capacity
  • Simplified debt/equity split for entry capital structure
  • Sources and uses of funds
  • Debt structure
  • Estimating the exit value
  • Calculating the IRR
  • Sensitizing the model

"Attending AMT's financial modeling courses has helped strengthen my financial skills and enhanced my technical ability. Some of the new Excel skills I learnt will certainly help in my new senior role." ~ associate, global investment bank

View video to get a flavour of the course

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:

 

  • printed course binder with copy of the slides
  • laminated summary sheets
  • 24/7 access to AMT Online (AMTO)
  • class recordings
  • course notes
  • quizzes
  • electronic homework/study files

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