CORE SKILLS

Valuation Fundamentals and Trading Comparables

For further information on dates or how to enrol on to our courses, please call +44 (0)20 7549 2591 or alternatively email our bookings team.

Course details

What you’ll learn

Valuation Fundamentals

The session lays the foundations to build a solid understanding of corporate valuation in the context of investment banking. The most common valuation methodologies are introduced, explaining the difference between a company’s fundamental value, and how much an acquirer would pay for the business. The concepts of enterprise value and equity value are explained, using simple but rigorous exercises. Finally, the basics of multiple valuation and discounted cash flow valuation are introduced. Exercises are used throughout the session.

Learning outcomes

  • The importance of valuation in the investment banking industry
  • Fundamental value vs. how much an acquirer will pay
  • Overview of the major valuation methods
    • Trading comparables analysis
    • Discounted cash flow analysis
    • Transaction comparables analysis
    • LBO analysis
  • Enterprise vs. equity value
  • Book values vs. market values
  • How to calculate enterprise value using market values
  • How to calculate enterprise value using a fundamental valuation approach

Trading Comparables Fundamentals

The session focuses on the details of comparable company analysis. Multiples are calculated on both a historical and forecasted basis and participants 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

“It’s great to have access to the AMT online platform. I found the videos and quizzes really useful to refer back to after my public course. The videos in particular were simple and easy to understand.” ~ analyst, private equity firm

Virtual Classroom

  • 1 day ( exam )

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

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.

Prerequisite 

A solid understanding of the topics covered by our courses in Financial Statement Analysis and Financial Modeling are desirable:

Financial Statement Analysis

Financial Modeling

  • Financial Modeling – Fundamentals
  • Financial Modeling – Cash Sweep and Troubleshooting
  • Financial Modeling – From Scratch