Relative/ comparable valuation course – 1 day

• Introduction: valuation camps
  • Comparable valuation in context
  • Introduction to and discussion of common valuation techniques
  • Comparison of comparable with absolute (DCF) valuation
  • Pros & cons of comparable valuation

• Choosing comparable companies
  • Manipulating comparable company analysis
  • Issues in choosing comparable companies
  • Stepping through comparable company analysis – the process
  • Sources of info
  • Keys to selecting comparables
  • Comparable analysis: pitfalls

• Selecting multiples
  • Overview of common multiples
  • Which strip out variability? Which are more volatile?

• Normalising earnings and source data
  • Key issues in source data: getting to harmonised and maintainable earnings, making use of data available to the market
  • Cleaning the numbers
  • Key adjustments
  • Discontinued operations
  • One off & exceptional items
  • Tax effects
  • Pensions and other items that look like finance costs
  • The role of judgement & detective work

Case exercise – cleaning the numbers.  Delegates work from a set of accounts and adjust to get to underlying profitability

• Summary: cleaning the numbers – a check list

• Defining firm value and calculating multiples
  • Enterprise vs. shares value
  • Routes to valuation/ applying it in practice
  • Key adjustments e.g. provisions and minority interests
  • Overview of common multiples

Case exercise – equity to enterprise value.  Delegates work from a set of accounts to reconcile equity and enterprise value, adjusting for debt, cash, provisions and minority interests

• Discussion – multiples – which are more volatile?  Which is best when?
  • Applying it in practice

Enquire about an in-house relative valuation course

If you have 4-5 staff who are interested in a relative valuation course, in-house training will prove cost-effective for your company. To enquire about in-house valuation training for a small group of your company's employees, please use Financial Training Associates' company contact details at the top right.

Book on a public valuation course

Financial Training Associates offers a mix of in-house and public courses. For details of our public courses (which accept individual registrations), and to book yourself on a program, please see Financial Training Associates' course calendar at the very top of the page.

Financial Training Associates' valuation & corporate finance courses

For further details regarding Financial Training Asssociates' valuation courses, please see our corporate finance course page.