Company Analysis: Valuation, Forecasting & Modelling

5 days 12-16 Dec 2016, London UK £4,895.00 + VAT* Download brochure Add to basket
5 days 19-23 Mar 2017, Dubai UAE £4,595.00 Download brochure Add to basket
5 days 15-19 May 2017, London UK £4,895.00 + VAT* Download brochure Add to basket
5 days 4-8 Dec 2017, London UK £4,895.00 + VAT* Download brochure Add to basket

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Overview

Globalisation leading to increased penetration of the internet, as well as the opening up of borders are just two of the many reasons that explain the increasing complexity of the business world. As a result, there are now a vast number of resources offering financial and business information.

However, the sheer volume of information available has paradoxically made it increasingly difficult to predict what will happen in the future.

How do you decide what is relevant, and what isn't? To answer this burning issue, we have designed this course to provide you with a comprehensive and practical range of fundamental analytical and forecasting skills, enabling you to sift through data in an efficient yet thorough way.

How will this course assist you?

  • Upon completion of this intensive five day course, you will be able to:
  • Value a company or investment using a variety of tools
  • Use basic financial modelling techniques in Excel
  • Understand discounting concepts, cost of capital and discounted cashflow analysis
  • Compare and contrast the various forecasting and analysis techniques

Who should attend

  • Investment and Commercial Bankers
  • Financial decision-makers in corporates
  • Management Consultants
  • Financial Analysts
  • General Managers
  • Credit Analysts
  • Accountants
  • Marketing Managers
  • Operations Managers
  • Project Managers

Instructors

We work with a series of expert instructors, please select the course location of interest to review the credentials of who will be delivering the programme.

London
Sophie Blanpain-Forder
Prior to becoming an independent consultant, the course director was the Global Head of Equity Research at Morley Fund Management, the third largest UK asset manager and one of the largest property fund managers in Europe. 

After graduating with highest honours from L'Institut d’Etudes Politiques de Paris, her career highlights have included roles such as Senior Analyst for the European Investment product division at Citibank N.A., as well as positions within Credit Lyonnais Securities, Credit Suisse First Boston and Lehman Brothers.

In addition, the course director has studied Economics and Finance specialising on Financial Tax Systems, Accounting and Financial Mathematics, and is a retained speaker for the CFA institute.
Dubai
Sophie Blanpain-Forder
Prior to becoming an independent consultant, the course director was the Global Head of Equity Research at Morley Fund Management, the third largest UK asset manager and one of the largest property fund managers in Europe. 

After graduating with highest honours from L'Institut d’Etudes Politiques de Paris, her career highlights have included roles such as Senior Analyst for the European Investment product division at Citibank N.A., as well as positions within Credit Lyonnais Securities, Credit Suisse First Boston and Lehman Brothers.

In addition, the course director has studied Economics and Finance specialising on Financial Tax Systems, Accounting and Financial Mathematics, and is a retained speaker for the CFA institute.

Venue

London

Central London Hotel Venue

All courses are held at four or five star venues in Central London, Zone 1. We strive to provide you with a training environment of the highest quality, to ensure that the whole learning experience exceeds your expectations.

Your training venue will be confirmed by one of our course administrators approximately 3-4 weeks before the course start date.

Dubai

Dubai Finance

This programme takes place on a non-residential basis at a central 4 to 5* Dubai hotel. Non-residential course fees include training facilities, documentation, lunches and refreshments for the duration of the programme. Delegates are responsible for arranging their own accommodation, however, a list of convenient hotels (many at specially negotiated rates) is available upon registration.

Related Courses

Inhouse


 

Do you have five or more people interested in attending this course? Do you want to tailor it to meet your company's exact requirements? If you'd like to do either of these, we can bring this course to your company's office. It might even prove to be more cost effective.





Our Tailored Learning Offering

If you want to run this course at a location convenient to you or if you want a completely customised learning solution, we can help.

We produce learning solutions that are completely unique to your business and we’ll be here to support you every step of the way. From the initial consultancy through to evaluating the success of the full learning experience. We'll ensure you get the maximum return on your training investment.



We can offer any of our public courses delivered at your office or we can devise completely tailored solutions specialising in:


Complete a call back request to speak to a learning specialist or learn more about our offering

 

Agenda

Agendas are localised, please select your preferred location.

Day 1

Modelling

Overview

  • Why create a model.
  • Good modelling practices.
  • Overall structure of the model.

Introductory model

  • The three main statements.
  • How they link up together.
  • Completion of small model.

The main structure

  • Historic P&L information.
  • Restating historic information.
  • Non-recurring items.
  • Historic B / S information.
  • Non-core assets.
  • Review of initial model for case company.

Fixed assets

  • Understanding capital intensity.
  • Maintenance vs expansion Capex.
  • Forecasting overall capex.
  • Calculating depreciation.

Day 2

Modelling and ratio analysis

Working capital

  • Components of cash and non-cash working capital.
  • Working capital ratios and their interpretation.
  • Forecasting working capital.

Associates and investments

  • Accounting for associates and investments.
  • Forecasting associates and investment income.
  • Impact on cash flow and B/S.

Equity financing

  • Minority interest- impact on equity financing.
  • Common shareholders- forecasting dividends and retained earnings.
  • Share buy-backs and rights issues.

Debt financing

  • Linking cash flow and debt requirements.
  • Different types of debt financing.
  • Leasing vs. ownership.
    - Scenario analysis.
    - Developing fully flexible scenarios.
    - Identifying the key variables.

Day 3

Comparable company analysis

Choosing appropriate comparable companies

  • How the choice of comparables impacts the final valuation.
  • Value drivers: understanding industry dynamics.
  • Main factors affecting selection: size, geography, regulation, customers.
  • Other factors affecting comparability, e.g. free-float, capital structure, corporate finance activity.

Equity vs. enterprise value multiples

  • Definitions.
  • Calculating EV: core vs. non-core, assessing liabilities.
  • Calculating “recurring” earnings.

Equity multiples

  • Main multiples: P / E and P / BV.
  • Decomposing P / Es: linking growth, Cost of equity and RoE.
  • Pros and cons of Equity multiples.

EV multiples

  • Main EV multiples.
  • Choosing the most relevant multiples.
  • Pros and cons of EV multiples.
  • Implied Valuation.
  • Interpreting results and deriving an implied valuation for the target company.

Day 4

DCF and cost of capital

Cost of capital

  • Why calculate a cost of capital.
  • The risk / reward trade off.
  • Impact of financial leverage on Value.
  • Market risk vs. company specific risk.
  • Accounting for market risk: asset betas.
  • Financial leverage and betas.

Equity investors

  • Calculating cost of equity.
  • Estimating the equity risk premium.

Debt financing

  • Impact of taxation: the tax shield.
  • Calculating the cost of debt.

Weighted Average ost of Capital

  • Market value of debt and equity.
  • Current vs. target WACC.

DCF

Forecasting FCF

  • Length of the explicit forecast period.
  • Cyclical and growth companies.
  • Calculating FCF: recurring vs growth FCF.
  • Appropriate FCF.
  • Forecasting of FCF for case company.

Day 5

DCF and overall valuation

Terminal value

  • Beyond the initial period.
  • When should FCF be normalised?
  • TV using the perpetuity method.
  • TV using the multiples method.
  • Running sensitivities.
  • Review of initial DCF model.

Value drivers

  • Understanding ROCE.
  • Components of capital employed.
  • Decomposing ROCE.
  • Value drivers and DCF.
  • The link between ROCE, growth and WACC.
  • Calculating TV using value drivers- compare with standard DCF.

Case study: participants will use the models they have built to analyse the performance of the target company and suggest a target share price.

Course summary and close

Day 1

Modelling

Overview

  • Why create a model.
  • Good modelling practices.
  • Overall structure of the model.

Introductory model

  • The three main statements.
  • How they link up together.
  • Completion of small model.

The main structure

  • Historic P&L information.
  • Restating historic information.
  • Non-recurring items.
  • Historic B / S information.
  • Non-core assets.
  • Review of initial model for case company.

Fixed assets

  • Understanding capital intensity.
  • Maintenance vs expansion Capex.
  • Forecasting overall capex.
  • Calculating depreciation.

Day 2

Modelling and ratio analysis

Working capital

  • Components of cash and non-cash working capital.
  • Working capital ratios and their interpretation.
  • Forecasting working capital.

Associates and investments

  • Accounting for associates and investments.
  • Forecasting associates and investment income.
  • Impact on cash flow and B/S.

Equity financing

  • Minority interest- impact on equity financing.
  • Common shareholders- forecasting dividends and retained earnings.
  • Share buy-backs and rights issues.

Debt financing

  • Linking cash flow and debt requirements.
  • Different types of debt financing.
  • Leasing vs. ownership.
    - Scenario analysis.
    - Developing fully flexible scenarios.
    - Identifying the key variables.

Day 3

Comparable company analysis

Choosing appropriate comparable companies

  • How the choice of comparables impacts the final valuation.
  • Value drivers: understanding industry dynamics.
  • Main factors affecting selection: size, geography, regulation, customers.
  • Other factors affecting comparability, e.g. free-float, capital structure, corporate finance activity.

Equity vs. enterprise value multiples

  • Definitions.
  • Calculating EV: core vs. non-core, assessing liabilities.
  • Calculating “recurring” earnings.

Equity multiples

  • Main multiples: P / E and P / BV.
  • Decomposing P / Es: linking growth, Cost of equity and RoE.
  • Pros and cons of Equity multiples.

EV multiples

  • Main EV multiples.
  • Choosing the most relevant multiples.
  • Pros and cons of EV multiples.
  • Implied Valuation.
  • Interpreting results and deriving an implied valuation for the target company.

Day 4

DCF and cost of capital

Cost of capital

  • Why calculate a cost of capital.
  • The risk / reward trade off.
  • Impact of financial leverage on Value.
  • Market risk vs. company specific risk.
  • Accounting for market risk: asset betas.
  • Financial leverage and betas.

Equity investors

  • Calculating cost of equity.
  • Estimating the equity risk premium.

Debt financing

  • Impact of taxation: the tax shield.
  • Calculating the cost of debt.

Weighted Average ost of Capital

  • Market value of debt and equity.
  • Current vs. target WACC.

DCF

Forecasting FCF

  • Length of the explicit forecast period.
  • Cyclical and growth companies.
  • Calculating FCF: recurring vs growth FCF.
  • Appropriate FCF.
  • Forecasting of FCF for case company.

Day 5

DCF and overall valuation

Terminal value

  • Beyond the initial period.
  • When should FCF be normalised?
  • TV using the perpetuity method.
  • TV using the multiples method.
  • Running sensitivities.
  • Review of initial DCF model.

Value drivers

  • Understanding ROCE.
  • Components of capital employed.
  • Decomposing ROCE.
  • Value drivers and DCF.
  • The link between ROCE, growth and WACC.
  • Calculating TV using value drivers- compare with standard DCF.

Case study: participants will use the models they have built to analyse the performance of the target company and suggest a target share price.

Course summary and close

Why us


We have a combined experience of over 60 years providing learning solutions to the world’s major organisations and are privileged to have contributed to their success. We view our clients as partners and focus on understanding the needs of each organisation we work with to tailor learning solutions to specific requirements.

We are proud of our record of customer satisfaction. Here is why you should choose us to help you achieve your goals and accelerate your career:

  • Quality – our clients consistently rate our performance ‘excellent’ or ‘outstanding’. Our average overall score awarded to us by our clients is nine out of ten.
  • Track record – we have delivered training solutions for 95% of worlds’ top 100 banks and have trained over 250,000 professionals.
  • Knowledge – our 150 strong team of industry specialist trainers are world leading financial leaders and commentators, ensuring our knowledge base is second to none.
  • Reliability – if we promise it, we deliver it. We have delivered over 20,000 events both in person and online, using simultaneous translation to delegates from over 180 countries.
  • Recognition – we are accredited by the British Accreditation Council and the CPD Certification Service. In an independent review by Feefo we scored 96% on service and 95% on product