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Valuation Modelling

Importance of Valuation

Valuation analysis has never been as important as it is right now. In a business world full of tax consolidations, Public Private Partnerships and trade sales few analysts can construct robust valuations. This course aims to plug the holes and provide real-life examples for various enterprise, equity and project valuations. 


While all of our courses focus on the practical applications, an understanding of theory is particularly pertinent to this course. This workshop will highlight and examine the theoretical issues that surface regularly in the realm of corporate finance and will challenge some of the inappropriate practices currently being adopted in the real world.

Key Benefits

This course will provide you with the following tangible insights:

  • How to calculate free cash flows from existing information
  • An appreciation of the differences between enterprise value, equity value and project investment appraisal
  • An understanding of the issues associated with developing equity valuations.
  • How to check your valuations using different analytical techniques

Programme Outline

  • The concept of a Discounted Cash Flow
  • The difference between risk and uncertainty
  • How to calculate Free Cash Flows
  • Determining the cost of equity: betas and the Capital Asset Pricing Model (CAPM)
  • Determining the cost of debt and its hidden impact on Free Cash Flow to the Firm
  • Calculating the Weighted Average Cost of Capital (WACC)
  • The role of tax in valuations
  • The importance of stakeholder analysis in a valuation
  • Real versus nominal considerations
  • Application of sensitivity and simulation analyses in a valuation context
  • Other valuation techniques: earnings multiples, Fair Value of Identifiable Net Assets (FVINA), Dividend Discounted Modelling and Real Options Analysis
  • Other metrics: differing internal rates of return (IRR, XIRR and MIRR), Economic Value Added (EVA) (© Stern Stewart), Strategic Value Add (SVA), Market Value Added (MVA) and the link to Net Present Value (NPV).

Who Should Attend

This course is essential for those seeking to broaden and enhance their approach to valuation, and ultimately construct robust valuations by applying different techniques.