How can you tell if a company is undervalued or overvalued? Is the current stock price the only measure of value? Why would one company command a higher or lower premium than its direct competitor? This course takes a practical, tangible, and non-theoretical approach to examining how corporations are valued and the major analytical tools that are used. Go beyond the academic theory of financial ratios and apply fundamental analysis and real-world methods of evaluating a company's intrinsic value. Gain insight into relative valuation methodologies (trading comps, deal comps) to fundamental valuation (discounted cash flow analysis, break-up / sum of the parts valuation). Coverage goes beyond the academic theory of financial ratios to the practical application of fundamental analysis, offering alternative, real-world methods of evaluating a company's intrinsic value.
The second half of this course builds on the first half and is hands-on, interactive and Excel-based. Apply the concepts learned in the discussion portion and perform relative valuation modeling techniques in Excel. We start the fundamental valuation modeling portion by building a DCF valuation model and turn our attention to relative valuation modeling by building a quick and dirty trading comps analysis by inputting historical results and analyst projections for comparable companies and calculating current standalone market valuation multiples. Then, construct a detailed comprehensive reference range analysis that quantifies valuation methodologies. In doing so, crystallize and appreciate the capital structure and the relationship between total enterprise value, equity value and price per share. Finally, build and update dynamic football field to graphically summarize valuation metrics. These tools are useful for any financial professional interested in analyzing a company.
How to value a company (trading comps, deal comps, DCF, LBO, break-up and asset valuation)
Importance of Enterprise Value, EBITDA, capital structure, leverage and WACC
Analyze valuation multiples and ratios; why are PE ratios sub-optimal as a valuation metric?
Practical, non-theoretical application of introduction to corporate finance
Introduction to Valuation and Corporate Finance:
How much is a company worth? Why is the current stock price not an accurate indication of value?
What is the importance between enterprise value and equity value?
TEV: correct treatment of minority interest from standalone valuation vs. credit vs change of control
What is the relevance of capital structure and leverage on a company's value?
Ratios and Multiples Discussion:
What exactly does a multiple tell us? Learn the correct way to use P/E ratios and other multiples
Why are P/E ratios misunderstood and what other profitability-related ratios are more important?
What is EBITDA and why is it so important?
Utilizing the correct numerator for multiples analysis and calculating implied value based on multiples
Discounted Cash Flow Analysis Modeling
Construct DCF model by starting with estimating unlevered free cash flow (free cash flow to firm)
Terminal Value: model out EBITDA multiple and perpetuity growth approaches and when to use each
Calculate from enterprise value down to equity value and ultimately down to stock price per share
Trading Comps Analysis
Input historical results and analyst projections for comparable companies (public traded competitors)
Calculate current standalone market valuation multiples and compare/contrast against target company
Differentiate between over/undervalued vs. trading at premiums/discounts
Incorporate industry and sector specific knowledge and company-specific factors into analysis
Reference Range and Football Field
Build reference range that quantifies fundamental and valuation methodologies
Crystallize and appreciate capital structure and the relationship between TEV, equity value and price per share
Utilize best practices to reduce average construction time from 2 hours to 30 seconds
Update dynamic football field to graphically summarize valuation metrics
Compare and contrast intrinsic value vs. current market valuation and understand final investment decision
Prerequisite: Intermediate proficiency using Excel, a solid grasp of basic accounting fundamentals and an understanding of basic valuation techniques are required. This Corporate Valuation class is a hands-on, technical workshop. NOTE: Laptops will not be provided.
To maximize the educational value of this program, we strongly recommend that you have an intermediate understanding of Excel. Lack of basic Excel skills will impede your ability to effectively acquire and implement the techniques and shortcuts that are presented in this program. Bring your PC laptop with a working USB slot and Microsoft Excel installed. Macs may not be as effective.
Members - $495
Non-Members - $595
Student-Members - $125 (Limited seats available)
*Function tickets cannot be used for this event
CFA Institute Qualified Activity: Eligible for 7 credit hours
Attire: Business Casual
Menu: Lunch Buffet (Vegetarian choices will be available)
Registration: Register online below
Hosted by: Education Advisory Group
8:30 am – 9:00 am - Registration
9:00 am - 5:00 pm - Seminar
Instructor: Hamilton Lin, CFA
Hamilton Lin, CFA, Founder & CEO of Wall St. Training, has a broad background in investment banking and mergers and acquisitions. His responsibilities have included analyzing, structuring and negotiating mergers & acquisitions. Lin custom-builds and develops all of the financial and merger models that he uses which have become corporate and departmental standards. Lin has closed over two dozen transactions and has diverse industry experience ranging from oil & gas to insurance to asset management and related sectors.
About Wall St. Training:
Wall St. Training provides professional financial training solutions to Wall Street through hands-on classroom training and customized corporate training programs for financial analysis which take a hands-on, interactive, practical, non-theoretical approach. Wall Street Training's clients include Bank of America/Merrill Lynch, Credit Suisse, Citigroup, Deutsche Bank, Fidelity, GE, Goldman Sachs, JPMorgan, Morgan Stanley, TPG, and many others. For more information: www.wallst-training.com and www.wstselfstudy.com.
*Special Notes Regarding Fees:
*Special Notes Regarding Fees: Student rate only available to students approved as a Student-Member of CFA Society Chicago for 2016-2017. Credit card is required to guarantee ALL reservations, no function tickets accepted. Day-of-event registrations accepted on-site only if applicable and space available. There is a $10 surcharge for walk-ins. Visa, MasterCard, American Express, Discover and Diners Club are accepted. Cancellations accepted until 5:00pm, March 29.
Members of any CFA society may attend at the CFA Society Chicago member rate. If you are only a member of CFA Institute, you do not qualify for the society member rate.
Content shared during CFA Society Chicago programs is not, and nothing in it should be construed as, an offer, invitation or recommendation of any specific financial services company or professional, or an offer, invitation or recommendation to sell, or a solicitation of an offer to buy, any securities in any jurisdiction. By registering for and attending this event, you acknowledge that any photographs that may be taken are the property of CFA Society Chicago and give your consent to their use in CFA Society Chicago's online and print business communications and marketing.
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