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

Relative valuation

What is covered?

An in-depth exploration of equity and enterprise valuation multiples, together with alternative tools.  This course offers many opportunities to understand and apply techniques learnt throughout and will cover the drivers of each multiple along with how they are both used and misused!  Alternative ratios will be a look at Tobin’s Q, sector specifics and regression analysis.

Who will benefit?

Participants looking for detailed learning on using and applying relative valuation metrics.  This course assumes no prior knowledge, but does move quickly through basic concepts to cover multiples and their construction in reasonable depth.

Course content

Introduction to relative valuation

• The intellectual basis and role of relative valuation
• Using relative valuation techniques: key issues and risks

Equity multiples

• The PE ratio, PEG ratio, PTB and PTS
• Other equity multiples and why they’re used
• How to use and misuse equity multiples.

Equity multiples examined

• Understanding the underlying drivers of equity multiples
• Identifying the underlying value drivers in each formula
• Reformulating the ratios in terms of value drivers

Enterprise multiples

• The difference between equity and enterprise multiples
• The impact of capital structure
• Understanding and using EV/EBIT, EV/Sales, EV/Capital employed,  EV/Free Cash Flow
• Other EV multiples - when and why they’re used

Other relative valuation techniques and estimation approaches

• Tobin’s Q
• Sector - specific ratios
• Using regression analysis: advantages and disadvantages