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
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. 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 participants perform several checks on the analysis using key ratios, and sensitivity and scenario analysis.
- 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 re-levering 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
""The virtual classroom was engaging and it felt like a classroom training"" ~ HR, International Investment Bank
View video to get a flavour of the course
What is a Virtual Classroom?
Virtual Classroom training is a new and highly engaging way of delivering programs remotely with enhanced levels of interactivity compared to conventional webinars. In AMT’s Virtual Classroom participants are encouraged to activate their own webcams and mics throughout the class allowing for real-time engagement, both verbal and non-verbal, with fellow participants and their trainer. Participants can also share their screens to get instant assistance in any technical exercise; just like asking the trainer to walk over and help in the classroom! We have seen a step-change in participant engagement with this new technology. The trainer’s ability to see a selection of their participants’ faces in real-time, and to react to their verbal and non-verbal cues creates a remarkably realistic classroom-like experience. For an example of the technical requirements of for our Virtual Classrooms click here.
A solid understanding of the topics covered by our courses in Financial Statement Analysis and Financial Modeling are desirable:
Financial Statement Analysis
- Accounting Fundamentals, the Income Statement and Working Capital
- Non-Current Assets, Cash Flow Statements, Debt and Equity
- Financial Modeling - Fundamentals
- Financial Modeling - Cash Sweep and Troubleshooting
- Financial Modeling - From Scratch
We also recommend delegates possess fundamental valuation skills.