1

Advanced Discounted Cash Flow (DCF) Modeling & Sensitivity Analysis

Description
  • Description: Deep dive into advanced DCF modeling techniques, focusing on complex scenarios and sensitivities. This includes modeling different cash flow structures, dealing with cyclical businesses, and incorporating scenario planning. Focus on building robust and flexible models. - Specific Resources/Activities: - Review advanced DCF case studies (e.g., from Damodaran's website, industry-specific valuation reports). - Practice modeling different capital structures and tax shields. - Build a DCF model for a publicly traded company, incorporating detailed assumptions (revenue growth, margins, capital expenditures, working capital). - Implement various sensitivity analyses (e.g., scenario manager, data tables) to assess valuation impacts of key assumptions. - Focus on creating a model that easily adjusts for changes in the economic environment and industry dynamics. - Expected Outcomes: Develop a highly refined and adaptable DCF model, capable of handling complex financial scenarios and providing a deep understanding of valuation drivers. Solid understanding of sensitivity analysis techniques.
Available

Learning Objectives

  • Understand the fundamentals
  • Apply practical knowledge
  • Complete hands-on exercises
2

Relative Valuation – Multiples Analysis & Comparable Company Analysis (CCA)

  • Description: This day focuses on refining the understanding and application of relative valuation techniques, primarily CCA and precedent transactions. The emphasis will be on selecting appropriate multiples, understanding their limitations, and adjusting for company-specific differences and market conditions. Explore advanced topics such as the use of regression analysis and trading comps vs. M&A comps. - Specific Resources/Activities: - Review academic papers and practitioner guides on multiples analysis. - Conduct CCA for a chosen company, focusing on identifying relevant comparables, making adjustments for differences, and explaining the logic behind the selected multiples. - Perform regression analysis to determine the relationship between multiples and fundamental drivers. - Analyze M&A transactions in the target industry, focusing on the valuation multiples used. - Evaluate the impact of market conditions and economic cycles on multiples. - Expected Outcomes: Ability to confidently apply relative valuation techniques, including choosing and justifying multiples, making necessary adjustments, and understanding the strengths and weaknesses of different approaches. Comprehensive understanding of trading comps vs. M&A comps.
Locked

Learning Objectives

  • Understand the fundamentals
  • Apply practical knowledge
  • Complete hands-on exercises
3

Advanced Leveraged Buyout (LBO) Modeling & Valuation

  • Description: Focus on mastering the intricacies of LBO modeling and valuation. This involves understanding the key components of an LBO model, including debt structuring, cash flow projections, and the interplay between financial leverage and returns. - Specific Resources/Activities: - Review advanced LBO case studies (e.g., from investment banking manuals, industry reports). - Build an LBO model for a hypothetical transaction, incorporating detailed debt tranches, interest expense, and principal repayments. - Model different exit scenarios and calculate internal rates of return (IRRs). - Analyze the impact of different deal structures on the potential returns. - Perform sensitivity analysis to understand the key drivers of LBO success. - Expected Outcomes: Mastery of LBO modeling techniques, enabling the analyst to assess the viability and attractiveness of leveraged transactions, and the ability to evaluate and compare different LBO structures.
Locked

Learning Objectives

  • Understand the fundamentals
  • Apply practical knowledge
  • Complete hands-on exercises
4

Option Pricing and Its Application in Corporate Valuation

  • Description: Learn how to apply option pricing theory to corporate valuation, including the Black-Scholes model and binomial option pricing. Focus will be placed on understanding the relationship between options and corporate assets, such as the value of real options, warrants, and employee stock options. - Specific Resources/Activities: - Review Black-Scholes and binomial option pricing models. - Analyze case studies where options are embedded in the corporate structure. - Calculate the value of a real option, such as the option to expand or abandon a project. - Understand the implications of employee stock options on the valuation. - Explore how option pricing can be used to value distressed companies. - Expected Outcomes: Solid understanding of how option pricing theory can be applied to corporate valuation, enabling the analyst to capture the value of embedded options and make more informed decisions.
Locked

Learning Objectives

  • Understand the fundamentals
  • Apply practical knowledge
  • Complete hands-on exercises
5

Valuation of Mergers & Acquisitions (M&A) and Synergies

  • Description: Deep dive into the valuation of M&A transactions, including the analysis of synergies, transaction structures, and the impact on shareholder value. Focus will be on developing robust valuation models to determine the attractiveness of potential deals. - Specific Resources/Activities: - Review M&A case studies and transaction summaries. - Model the impact of synergies (revenue, cost, and tax) on the combined entity's value. - Calculate the accretion/dilution of earnings per share (EPS). - Assess the impact of different transaction structures (e.g., cash, stock). - Analyze the strategic rationale behind a given M&A transaction. - Expected Outcomes: Strong ability to value M&A transactions, including identifying and quantifying synergies, understanding the impact of different deal structures, and evaluating the strategic rationale behind the transaction.
Locked

Learning Objectives

  • Understand the fundamentals
  • Apply practical knowledge
  • Complete hands-on exercises
6

Advanced Valuation of Intangible Assets and Specialized Industries

  • Description: This day delves into the valuation of intangible assets (e.g., brands, patents, intellectual property) and the specific valuation challenges of different industries (e.g., tech, pharmaceutical, and other highly specialized industries). - Specific Resources/Activities: - Research and analyze methodologies for valuing intangible assets. - Study valuation reports for specialized industries. - Conduct a valuation of an intangible asset, selecting the appropriate valuation methodology and incorporating relevant assumptions. - Explore industry-specific valuation metrics and their significance. - Understand the unique characteristics of companies in specialized industries and their implications on valuation. - Expected Outcomes: Expertise in valuing intangible assets and understanding the valuation nuances of specialized industries, enabling the analyst to tackle complex valuation challenges.
Locked

Learning Objectives

  • Understand the fundamentals
  • Apply practical knowledge
  • Complete hands-on exercises
7

Advanced Valuation Review and Case Study Application & Presentation

  • Description: This day is designed for consolidating the learning from the previous days. It involves a final review of the key valuation concepts, a comprehensive case study application, and a presentation simulating a real-world valuation scenario. - Specific Resources/Activities: - Review and synthesize all the valuation methods learned during the week. - Choose a complex case study company or industry. - Perform a complete valuation of the case study company, using all appropriate valuation techniques learned. - Prepare a concise and well-structured presentation of the valuation results, highlighting the key assumptions and conclusions. - Practice the presentation and receive feedback. - Expected Outcomes: Demonstrate a comprehensive understanding of corporate valuation principles and an ability to apply them in a real-world scenario. Improve presentation and communication skills and solidify the ability to defend the valuations.
Locked

Learning Objectives

  • Understand the fundamentals
  • Apply practical knowledge
  • Complete hands-on exercises

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