Valuation

by Peter Howson

This course introduces valuation processes and provides an overview of the main valuation methods. Including exploring the use of multiples, cash flow discounting, target returns, balance sheet methods and value creation.

This course is not currently available

This course will enable you to

  • Have an overview of valuation and its processes
  • Understand what a valuation multiple is, as well as the various multiples available and their processes
  • Understand cash flow discounting valuations and how to build a cash flow model
  • Consider the variety of valuation techniques that exist in addition to the more traditional approaches including, the Berkus method, the scorecard method and goodwill based methods

About the course

How do you value a business? In short, there's no right answer. Value can differ depending on a company's circumstances and there are numerous valuation methods and formulae that can be used when buying and selling a company.

This course provides everything you need to start valuing businesses confidently. It introduces you to valuation processes and provides an overview of the main valuation methods. This includes exploring the use of multiples, cash flow discounting, target returns, balance sheet methods and value creation.

Look inside

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Contents

  • An overview of valuation
    • What is valuation?
    • What is price?
    • What circumstances call for a valuation?
    • What is the valuation process?
    • What is being valued?
    • What are the main valuation methods?
  • Multiples
    • What is a valuation multiple?
    • How do you calculate a multiple?
    • What periods are used to calculate multiples?
    • How should you choose comparable companies?
    • How should comparable transactions be used?
    • What are the enterprise value multiples?
    • What are the equity value multiples?
    • What are the advantages and disadvantages of using multiple-based valuation?
  • Cash flow discounting
    • What is cash flow discounting valuation?
    • How do you build a discounted cash flow model?
    • What are the stages of building a cash flow model?
    • How do you get the right numbers for a discounted cash flow model?
    • How do you project sales and gross margin?
    • What intangibles should be considered in the discounted cash flow model?
    • How do you do the maths?
    • What is terminal value?
    • What are real options?
    • What is the dividend discount model?
  • Target returns, balance sheet methods & value creation
    • What is return on investment?
    • What is the venture capital method?
    • What is the Berkus method?
    • What is the scorecard method?
    • What is net asset value?
    • What is adjusted book value?
    • What are goodwill based methods?
    • What is value creation?

How it works

Author

Peter Howson

Author of four books on mergers and acquisitions and has over 25 years experience on the subject.

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This course is not currently available. To find out more, please get in touch.