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Discounted Cash Flow (DCF) Valuation (1 day)

AMT Training
Course summary
Professional Training
1 day
650 GBP
Full time
Professional Training
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.

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‚Äôs 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...


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AMT Training

5th floor Whitechapel Building 10 Whitechapel High Street
E1 8QS London

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www.amttraining.com

Reviews

Average rating 4.7

Based on 10 reviews.

Chloe
It was interactive, and easy to understand. Thank you for taking care of us who are not familiar with accounting a lot.
Narciso Kawaguchi
very motivating and energetic tream - thank you!!
Barabal Jensen
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