Corporate Valuation in Practice

Course objectives

• Familiarizing participants with valuation methods,
• Showing the presented methods on practical examples,
• Identifying the main factors affecting enterprise value,
• Discussion of the most important dilemmas and limitations related to corporate valuations.

Programme

1. Introduction to valuation

• price versus value –  what is the difference,
• valuation – key terms and definitions,
• valuation methods: asset-based, discounted cash flows, relative,
• valuation perspectives – an objective or subjective process?
• reasons behind conducting valuation,
• sources of information used for valuation purposes.

2. DCF method (discounted cash flows),

• cash flows according to DCF, what cash flows to apply?
• FCFF (free cash flow to firm)
  • enterprise value – definition and methods of calculation,
  • practical methods of mapping a business model and corporate strategy in excel and creating reasonable forecasts,
  • valuation of growth, mature and cyclical companies,
• residual value – when can it be applied, what assumptions are reasonable,
• FCFE (free cash flow to equity)
  • shareholder value – definitions and calculation methods,
  • adjustments between FCFF and FCFE (e.g. net debt, provisions, factoring, non-operating assets),
  • impact of group’s structure and consolidation methods on FCFF and FCFE,
• number of shares and necessary adjustments,
• application of DCF model to M&A (types of synergies, purchase for cash/debt versus share exchange),
• advantages and disadvantages of DCF method and ways of its application,
• practical exercise, use of DCF method to value a company growing organically and conducting M&A.

3. Cost of Capital

• time value of money,
• cost of debt,
• cost of equity (CAPM), key elements,
• weighted average cost of capital (WACC),
• optimal capital structure,
• practical exercise, WACC calculations.

4. Peers comparison method

• key characteristics, application possibilities, required assumptions,
• key valuation multiples based on market capitalisation and enterprise value (e.g. P/E, EV/EBITDA, P/BV, EV/Sales),
• advantages and disadvantages of key multiples,
• criteria for choosing peers,
• advantages and disadvantages of the method,
• practical exercise: peers comparison valuation, discussion of the results.

5. Alternative valuation methods

• ‘sum-of-the-parts’ method
  • how to use operating segments in valuation,
  • advantages, disadvantages and possibilities of application,
  • practical valuation exercise,
• DDM method (discounted dividends model)
  • advantages, disadvantages and possibilities of application,
  • practical valuation exercise,
• EVA® method (Economic Value Added)
  • what is economic value added,
  • why is it the simplest and the hardest valuation method at the same time,
  • assumptions, advantages and disadvantages of the method,
• real options
  • assumptions, advantages and disadvantages of the method,
  • application of call and put options to valuation,
  • practical exercise.

6. Summary

• limitations, subjectivism and dilemmas in valuation
• valuation through the eyes of equity analyst – an example of an analytical report created by a brokerage house analyst, discussion on the content and perspective from which the valuation is created.

Date and location

This is a live online training programme, allowing you to participate wherever you are in the world!

Next online workshop: 8-9 July 2021

Our training days run from 9:00am to 4:30pm CET | 11:00am – 6:00pm GST | 12:30pm – 7:30pm IST.

Price: 2300 zł (525 Euro) net per participant.

Contact us about our corporate rates and about organising this course in-house!

Find out more about how we deliver interactive online training

Milena Olszewska-Miszuris, CFA, FCCA, FSA Credential-holder

Milena specialises in valuations as well as financial and non-financial analysis and possesses over a dozen years of experience on the capital markets. She holds three international designations: CFA (Chartered Financial Analyst), ACCA (Association of Chartered Certified Accountants) and FSA Credential (Fundamentals of Sustainability Accounting) awarded by SASB (Sustainability Accounting Standards Board).

Milena started her career at the international consulting company Ernst & Young. For 10 years she has been an equity analyst at international brokerage houses. She has won a number of awards for her insights and recommendations both domestically (Analyst of the Year title awarded by Warsaw Stock Exchange and Parkiet financial newswire, winner of analysts rankings in TMT and retail sectors) and internationally (top CEE analyst and top consumer analyst titles in international Extel survey).

Currently she runs a boutique advisory company supporting management teams in value creation, financial and non-financial reporting, valuations and investor relations. She is a Management Board Member of CFA Society Poland and a member of the Association of Independent Supervisory Board Members. Milena also sits on the Corporate Governance Committee of the Warsaw Stock Exchange and on the Supervisory Board and Audit Committee of R22 S.A.

Contact

Aleksandra Trych

tel. +48 505 171 636

Please ask me about our corporate rates and about organising this course in-house - I will be happy to discuss your needs and accommodate this course to your timezone.