Masterclass in Company Valuation Modelling

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In real life, the main challenge in valuing different entities is the ability to understand and quantify the various inputs. If the inputs are nonsensical, the valuation output will unquestionably be nonsensical. For this reason, a large section of this course is devoted to understanding and modeling valuation inputs including adjustments to financial statements. This intensive five-days workshop offers in-depth and practical analysis of the different valuation techniques that can be used to value different entities. It will also examine the use of real options modeling that are used to value patents, contracts, natural resources and for various other applications. The workshop will focus on the framework that can be used to pick the right model for any task and it will also extensively expose delegates to the modeling of various real life valuation cases. Companies are valued for the purposes of investment, mergers and acquisitions or as part of internal measures of financial control. There are many different approaches to the valuation of companies and it is paramount to know when and how to apply what method. It is also essential to understand that company valuation is not an absolute science but also based on interpretation and judgment. In the broadest possible terms, firms or assets can be valued in one of four ways: asset based valuation approaches, discounted cash flow valuation approaches, relative valuation approaches and option pricing approaches. The concepts and models taught are designed to be of practical benefit to attendees and are immediately usable in the workplace. This highly practical course will lead you quickly from the basics through the more advanced valuation methodologies and modeling techniques. The hundreds of participants who attended this course in different parts of the world indicate that they gained valuable knowledge and experience that will greatly assist them in their careers. Due to the outstanding success of this course, the presenter was asked to develop Valuation II to show more applications. Only the participants who attended Valuation I will be allowed to participate in Valuation II.

المخرجات الرئيسية

Understand all inputs into the various valuation models
Build your own sensitivity analysis within your models
Evaluate the outcome of different valuation techniques
Discover the difference in treatment between valuing companies, properties and patents
Structure your models according to your specifications and work through the 25 Excel exercises and 5 case studies

International Academy of Business and Financial Management
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The International Academy of Business and Financial Management™ is one of the world’s fastest growing professional association with more than 200,000 members, associates and affiliates in 145 countries. IABFM™ hosts and organizes certification training worldwide and offers exclusive board designations to candidates who meet the highest professional standards and assessment criteria. The IABFM is credited by the American National Standards Institute (ANSI) the International Standards setting authority.

محتوى الدورة التدريبية

Real Estate Investment: Basic Concepts
→ Two General Classifications of Estates
→ Estates Not Yet in Possession (Future Estates)
→ Examples of Leasehold Estates
→ Interests, Encumbrances, and Easements
→ Methods of Title Assurance
→ Abstract and Opinion Method
→ The Title Insurance Method
→ Limitations on Property Rights
→ Notes and mortgages
→ Seller financing
→ Reconstructing a mortgage loan
Introduction to valuation
→ The five myths about valuation
→ The principles and practice of time value for money
Exercise 1: modeling a straight bond valuation
→ Benjamin Graham’s safety margin
→ Introduction to DCF
→ Some useful Excel modeling tips
Risk Parameters and expected return
→ What is risk and how to measure it?
→ Models of default risk and CAPM
→ Market risk premium meaning and measurement.
→ Risk free rates and market risk premium around the world
→ How often to review assumptions
→ Estimating risk parameters and cost of financing
→ After all, what is beta?
Exercise 2: modeling regression beta calculation of a listed company
Exercise 3: modeling bottom up beta calculation of the same company
→ Using published betas
→ Equity risk and expected returns
→ Reviewing the country risk premium of various countries worldwide
Exercise 4: modeling the cost of equity of a local and a foreign company
→ The three ways of calculating cost of debt
→ Book value or market value of debt and equity?
Exercise 5: modeling synthetic rating for a listed and a private company
→ Cost of capital modeling
→ The explicit and implicit costs of financing. Meaning and importance
→ What happens practically when companies don’t meet their cost of capital?
→ The practice of changing assumptions in the stable growth period
→ Some analysts don’t use CAPM. Practical alternatives?
→ What does Warren Buffet use as cost of capital?
Case study 1: calculating the cost of capital of Marriott Financial Statements adjustment
→ The reasons for adjusting financial statements
→ Capitalizing operating leases
→ The capitalization rate
Exercise 6: modeling the adjustment to EBIT and adjustment to total debt
→ Capitalizing R&D
→ Nature of industry and how many years to look back
Exercise 7: modeling the tax effect of R&D adjustment and final effect on EBIT
Case study: capitalizing operating leases and R&D at Boeing
Financial Statements adjustment
→ The reasons for adjusting financial statements
→ Capitalizing operating leases
→ The capitalization rate
Exercise 6: modeling the adjustment to EBIT and adjustment to total debt
→ Capitalizing R&D
→ Nature of industry and how many years to look back
Exercise 7: modeling the tax effect of R&D adjustment and final effect on EBIT
Case study: capitalizing operating leases and R&D at Boeing
Free Cash Flow to Equity (FCFE) vs Free Cash Flow to Firm (FCFF)
→ Meaning, measurement and modeling
→ Which one to use? Why?
→ Normalizing EBIT, capex and working capital
→ What does and doesn’t capex include?
→ Why we need the non-cash, non-debt working capital?
→ Adjustments required if firms have negative working capital
→ Marginal vs. effective tax rate
→ Stable debt policy and FCFE
→ FCFE and leverage. Is there a free lunch?
Exercise 8: calculating FCFF of a listed company
→ Calculation of terminal value
Case study 2: modeling the FCFF of Boeing
Estimating Growth
→ The three ways of estimating growth rates
→ Extrapolation and its danger
→ High growth period vs. stable growth period
→ Length of the high growth period
→ Fundamental growth rate
→ Effect of ROC and Reinvestment rate on growth rate
Exercise 9: calculating the fundamental growth rate of a listed company
→ High growth rate estimation vs. stable growth rate assumption
→ Real vs. nominal growth rates
→ The three growth patterns and which to use
Exercise 10: modeling the three growth patterns
Tying up loose ends
→ Effect of management options on valuation
Exercise 11: valuing management options of a listed company
→ Effect of minority interest on valuation
Exercise 12: applying relative valuation to minority interest
→ Valuing operating and non-operating assets
→ Effect of contingent claims
Putting it all together
Case study 3: full valuation of a cement company covering all the previous topics
Dividend discount models (DDM)
→ Gordon growth model
→ Versions of the model
→ Issues in using DDM
Exercise 13: valuing S&P 500 using DDM
Case study 4: valuing a utility company using DDM
Free cash flow to equity and free cash flow to the firm:
→ Adjusting the accounting records
→ The cost of capital approach
→ Effect of leverage on firm value
Relative valuation
→ Standardized values and multiples
→ Three different ways to using multiples
Exercise 14: using regression analysis with multiples
→ Earnings multiples
→ Book value multiples
→ Sales multiples
→ Calculation of terminal value using multiples
→ Presentation of a fully automated model developed by Hamed Behairy using multiples to screen for quality and cheap investment ideas worldwide.
Valuing financial services firms
→ What is unique?
→ General framework
→ Excess return model
→ Valuing financial services firms using DDM
Exercise 15: valuing Morgan Stanley using Excess Return Model
Exercise 16: Valuing Morgan Stanley using multiples
Valuing distressed firms and firms with negative earnings:
→ Distressed firms: implications of viewing equity as an option
→ Negative earnings: causes and consequences
Exercise 17: once off charge at Daimler Chrysler
Exercise 18: temporary or sector wide reasons at Volvo
Valuing private companies
→ What makes them different?
→ Estimating the cost of capital for private companies
→ Charging for higher risk: haircut from valuation or increasing the cost of capital?
→ Estimating the size of liquidity discount
→ Estimating the value of control premium
Exercise 19: modeling valuation of a private company
Case study 4: Building a venture capital valuation model in Excel using sensitivity analysis for different exit options
→ Using IRR in venture capital valuation
→ IPEVCVG (International Private Equity and Venture Capital Valuation Guidelines) developed by 35 internatinal private equity and venture capital associations
Real options valuation
→ Introduction to Black-Scholes model
→ Payoffs of put vs. call options and long vs. short options
Exercise 20: Using Black-Scholes model to value financial options
→ Real options: meaning and applications
→ Valuing a patent
Exercise 21: model of a pharmaceutical patent valuation
→ Valuing natural resources as options
Exercise 22: model of an oil mine valuation
→ Valuing a contract with options to expand or abandon
Exercise 23: model of value to expand operations of Disney in Latin America
Exercise 24: model of value to abandon of Disney from a construction contract
Valuing properties
→ Real vs. financial assets
→ DCF, relative valuation
→ Capitalization rates
Exercise 25: valuing a building in New York
Case study 5: valuing a piece of land in South Africa.
General framework
→ Choosing the right DCF model
→ Choosing the right relative valuation model
→ When should you use the option pricing model?
→ Conclusion
M&A valuation and modeling
→ Model-building process
→ Key M&A model formulas
→ Modeling the Acquirer standalone valuation (Excel Model)
→ Modeling the Target standalone valuation (Excel Model)
→ Modeling the combined valuation and synergy estimation (Excel Model)
→ Modeling Initial offer price calculation (Excel Model)
→ Modeling forecasted EPS of the Acquirer after acquisition (Excel Model)
→ Modeling the combined company financing capacity (Excel Model)
Deal structuring and financing
→ The deal structuring process
→ What is the best form of payment? Why?
→ Alternative financing options
→ Common forms of leveraged buyout deal structures
→ Analyzing leveraged buyouts
→ Applying LBO valuation models
→ Real life case studies
Alternative restructuring exit strategies
→ Motives for exiting businesses
→ Divestitures
→ Carve outs
→ Split ups vs split offs
→ Spin offs
→ Bust ups
→ Real life case studies

على من يجب الحضور؟

This highly practical and interactive course has been specifically designed for
→ Corporate financiers
→ Transactors
→ Portfolio managers
→ Venture capitalists
→ Research analysts
→ Investment bankers
→ CEO’s
→ Board members
→ Financial advisors
→ Hedge fund managers
→ Private equity managers
→ Trustees
→ Risk controller
→ Strategicplanners
→ Corporate lawyers
→ Compliance officers
→ Senior managers
→ Corporate accountants
→ Auditors


What language will the course be taught in and what level of English do I need to take part in an LEORON training program?
Most of our public courses are delivered in English language. You need to be proficient in English to be able to fully participate in the workshop and network with other delegates. For in-house courses we have the capability to train in Arabic, Dutch, German and Portuguese.
Are LEORON Public courses certified by an official body/organization?
LEORON Institute partners with 20+ international bodies and associations.We also award continuing professional development credits (CPE/PDUs) for:1. NASBA (National Association of State Boards of Accountancy) 2. Project Management Institute PDUs 3. CISI credits 4. GARP credits 5. HRCI recertification credits 6. SHRM recertification credits
What is the deadline for registering to a public course?
The deadline to register for a public course is 14 days before the course starts. Kindly note that occasionally we do accept late registrations as well, but this needs to be confirmed with the project manager of the training program or with our registration desk that can be reached at +1071 4 1075 5711 or
What does the course fee cover?
The course fee covers a premium training experience in a 5-star hotel, learning materials, lunches & refreshments, and for some courses, the certification fee and membership with the accrediting bodies.
Does LEORON give discounts?
Yes, we can provide discounts for group bookings. If you would like to discuss a discount on a corporate level, we will be happy to talk to you.


  • عرض:
    ... Once again thank you for the course, it is undoubtedly the best valuation course I have been on (and I have been on a few). Your presentation of the material was excellent and your knowledge excellent. -BDO Spencer Steward Services
    Corporate Finance Director