Illustrative course outlines

At OTC we believe in tailoring our courses to meet each client’s specific requirements.  The illustrative course outline below gives an indication of the type of course content that we’ve been asked to deliver. For more information call us on +44 20 7700 3330 or email info@ockendontraining.com

Strategy & Leadership Finance & Commerce Investment Banking

Absolute valuation

What is covered?

This course offers an in-depth exploration of net asset and DCF valuation approaches together with a review of key corporate finance theory.  In this practical course the aim is to ensure that participants are able to both understand and apply in their own calculations back at the office some of the major areas of corporate finance like the cost of equity, the cost of debt, WACC.  Participants should expect to be led through the start to finish process of producing a DCF company valuation.

Who will benefit?

Participants who need to be able to produce company or project valuations at work and have background knowledge in basic NPV and interest rates but are looking to be guided in its application.

Course content

Introduction to absolute valuation
    • Fundamental issues and rationale
    • Main methods used – DCF and Net asset valuation
    • Advantages and disadvantages of each method
Net asset valuation
    • Estimating a net asset valuation
    • Common issues in deriving accurate valuation
Firm value and equity value: the building blocks
    • Firm value and equity value
    • Alternative valuation models: DCF, DGM,
    • Free cash flow: estimation issues
The cost of equity
    • Risk and return, portfolio theory, CAPM and Betas
    • Bloomberg’s EQRP and BETA functions
    • Geared and asset Betas
The weighted average cost of capital
    • M&M and traditional theory
    • Estimating WACC
Dealing with complex capital structures
    • Provisions – tax and pension liabilities
    • Off-balance sheet finance
    • Other items
Practical issues in valuation
    • The terminal value calculation
    • The competitive advantage period
    • The option to delay
    • Firms with negative earnings
    • Data issues in estimating the cost of equity and WACC
    • Using cost of capital in the business context: hurdle rates


 

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