V1USonline: Corporate Finance & Valuation 101

Foundation Level  (60 days)

Valuation is the key to financial PR and IR. This course will help you understand P/E ratios and other multiples, how DCF valuation works and how investment decisions are taken. You will be able to appreciate how companies are valued by the market and how to use communications to influence value.

Outcomes

• Understand key concepts such as shareholder value and the cost of capital
• Appreciate the impact of company funding and the right mix of debt and equity
• Understand the concept of absolute valuation, including DCF models
• Get to grips with P/E ratios and other metrics and see how to influence them
• Appreciate what moves share prices and the importance of good communications

What you will learn

The Big Picture, Funding and Cost of Capital
 • Context for valuation
 • Key concepts
 • The equity research and valuation process
 • Valuation influences
 • The concept of shareholder value
 • Introduction to cost of capital

DCF Basics and Absolute Valuation
 • Compounding and discounting
 • Investment appraisal, NPV and IRR
 • Equity or enterprise valuation?
 • Discounted Cash Flow valuation of companies
 • Problems with DCF
 • Key valuation variables

Valuation Using Multiples
 • Introduction to relative valuation
 • P/E ratios, valuing assets, dividend yield
 • EV ratios
 • Sum of the parts valuation

Understanding Share Prices & Communicating Value
 • Share price influences
 • Communicating value creation
 • Addressing fundamentals and sentiment
 • The importance of the peer group
 • Influencing value - how communications can help

Summary & Conclusion