Discounted Cash Flow (DCF) Valuation (1 day)

AMT Training

Course summary

Professional Training

1 day

650 GBP

Full time

AMT Training

Professional Training

4.7 (10 Reviews)

Course Dates

Online courses

650 GBP

Online delivery option may be available - Please contact provider

London

650 GBP

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Course description

Discounted Cash Flow (DCF) Valuation (1 day)

Participants learn how to build a discounted cash flow valuation model. The session starts with an overview of the valuation methodology, and the steps required in setting up a valuation model. We then focus on the calculation of free cash flow. A detailed ratio analysis is used to establish the reasonableness of the forecasts and to identify when the target company reaches steady state.

We analyze the weighted average cost of capital, calculate terminal values, using both the exit multiple method and the perpetuity growth method. We discount the free cash flows to arrive at enterprise values and calculate the implied share price. Once the valuation is complete participants perform several checks on the analysis using key ratios, and sensitivity and scenario analysis.

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Suitability - Who should attend?

New hires who have joined the firm late and missed the in-house program
Individuals looking to fill a knowledge gap
Experienced bankers looking to refresh their technical skills
Teams employed in financial strategy roles from non-banking corporations
Graduates preparing to interview for a role in the finance sector
Students at business school and looking for a career in finance

Prerequisite

A solid understanding of the topics covered by our courses in Financial Statement Analysis and Financial Modeling are desirable:

Financial Statement Analysis

Accounting Fundamentals, the Income Statement and Working Capital
Non-Current Assets, Cash Flow Statements, Debt and Equity

Financial Modeling

Financial Modeling - Fundamentals
Financial Modeling - Cash Sweep and Troubleshooting
Financial Modeling - From Scratch

We also recommend delegates possess fundamental valuation skills.

Valuation Fundamentals and Trading Comparables

Training Course Content

Learning Outcomes

Calculating unlevered free cash flows
- Drivers of cash flow
- Ratio analysis
Weighted average cost of capital

Optimal capital structure using peer analysis
Establishing the company’s forward looking cost of debt
Cost of equity: understanding the risk free rate, the equity risk premium and beta
Unlevering and re-levering the beta
Calculating WACC for the case company

Calculating the terminal value

Perpetuity growth (Gordon Growth model) method
Exit multiple method

Building a discounting model

Mid-year adjustments

Calculating enterprise and equity values
Sanity checks

Reinvestment rate and ROIC
Implied multiples and growth rates
Percentage of value in the terminal period

Course delivery details

While this is a face to face training course, a blended learning approach is taken and delegates will be provided with access to AMT Online. Our study materials contain both the knowledge and practice materials required to assist with the learning process and help you in your job role. Course materials include:

e-binder
laminated summary sheets
24/7 access to DELTA online learning environment
class recordings
course notes
quizzes
electronic homework/study files

About provider

AMT Training - Financial Modeling Courses

For over 20 years we have been equipping analysts and associates with core skills for banking and finance. Our clients include the top ten investment banks and some of the biggest private equity firms in the world. With offices in...