Globalization increased penetration of the internet and the opening up of borders are just a few of the reasons why the business world is becoming more complex. It more difficult to assess today's business climate with the many more sources of financial and business information available than ever before. Likewise, it is becoming increasingly difficult to predict what will happen in the future, yet it is of utmost importance to come to sound financial decisions and recommendations.
This 5 day course will provide you with an in-depth and practical overview of financial analysis and forecasting techniques. During this 5-day training program you will learn to:
- Value a company or investment using a variety of tools
- Use basic financial modeling techniques in Excel
- Understand discounting concepts, cost of capital and discounted cash flow analysis
- Compare and contrast the various forecasting and analysis techniques
Who Should Attend?
- Investment and Commercial Bankers
- Financial decision-makers in corporate
- Management Consultants
- Financial Analysts
- General Managers
- Credit Analysts
- Accountants
- Marketing Managers
- Operations Managers
- Project Managers
Day 1: Modeling Overview Why create a model
Good modeling practices
Overall structure of the model
Introductory Model The three main statements
How they link up together
COMPLETION OF SMALL MODEL The main structure Historic P&L information
Restating historic information
Non-recurring items
Historic B/S information
Non-core assets
REVIEW OF INITIAL MODEL FOR CASE COMPANY
Fixed Assets Understanding capital intensity
Maintenance vs. expansion Capex
Forecasting overall Capex
Calculating depreciation
Day 2: Modeling and ratio analysisWorking Capital Components of cash and non-cash working capital
Working capital ratios and their interpretation
Forecasting working capital
Associates and investments Accounting for associates and investments
Forecasting associates and investment income
Impact on cash flow and B/S
Equity financing Minority interest- impact on equity financing
Common shareholders- forecasting dividends and retained earnings
Share buy-backs and rights issues
Debt Financing Linking cash flow and debt requirements
Different types of debt financing
Leasing vs. ownership
Scenario analysis Developing fully flexible scenarios
Identifying the key variables
REVIEW OF COMPLETED MODEL FOR CASE COMPANYDay 3: Comparable company analysis Choosing appropriate comparable companies How the choice of comparables impacts the final valuation
Value drivers: understanding industry dynamics
Main factors affecting selection: size, geography, regulation, customers
Other factors affecting comparability, e.g. free-float, capital structure, corporate finance activity
Equity vs. Enterprise value multiples Definitions
Calculating EV: core vs. non-core, assessing liabilities
Calculating “recurring” earnings Equity multiples Main multiples: P/E and P/BV
Decomposing P/Es: linking growth, Cost of equity and RoE
Pros and cons of Equity multiples
EV multiples Main EV multiples
Choosing the most relevant multiples
Pros and cons of EV multiples
Implied Valuation Interpreting results and deriving an implied valuation for the target company
DAY 4: DCF and Cost of Capital Cost of Capital Why calculate a Cost of capital
The risk/reward trade off
Impact of financial leverage on Value
Market risk vs. company specific risk
Accounting for market risk: asset betas
Financial leverage and betas
Equity investors Calculating Cost of Equity
Estimating the equity risk premium
Debt financing Impact of taxation: The tax shield
Calculating the cost of debt
Weighted Average Cost of Capital Market value of debt and equity
Current vs. target WACC
DCF Forecasting FCF Length of the explicit forecast period
Cyclical and growth companies
Calculating FCF: recurring vs. growth FCF
Appropriate FCF
FORECASTING OF FCF FOR CASE COMPANY Day 5: DCF and overall valuation Terminal value Beyond the initial period
When should FCF be normalized?
TV using the perpetuity method
TV using the multiples method
Running sensitivities
REVIEW OF INITIAL DCF MODELValue drivers Understanding ROCE
Components of Capital Employed
Decomposing ROCE
Value drivers and DCF
The link between ROCE, growth and WACC
Calculating TV using value drivers- compare with standard DCF
CASE STUDY: participants will use the models they have built to analyze the performance of the target company and suggest a target share price
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Sophie Blanpain-Forder
Sophie Blanpain-Forder was the Global Head of Equity Research at Morley Fund Management, the third largest UK asset manager and one of the largest property fund managers in Europe. Prior to that she worked as Senior Analyst for the European Investment product division at Citibank N.A. where her main responsibilities included the design of new investment products and asset allocation. She also worked for Credit Lyonnais Securities, Credit Suisse First Boston and Lehman Brothers. Sophie graduated in 1990 from Institut d’Etudes Politiques de Paris with highest honours. She studied Economics and Finance specialising on Financial Tax Systems, Accounting and Financial Mathematics. She is also a retained speaker for the CFA institute.
Courses run by this instructor
Interested in holding this course in-house? Please fill out your details and a member of our team will be in touch with more information.
20-22 Jun 2012 (Miami, United States)
The course begins by concentrating on spreadsheet best practice, auditing and the advanced use of Excel. These skills are then applied to the construction of financial, valuation and investment models. Delegates learn how to incorporate forecasting, optimization, risk assessment and sensitivity scenarios into these models. The course is taught using a step-by-step approach to enable delegates to construct financial models for a wide range of practical scenarios.
29 Oct 2012 - 1 Nov 2012 (New York, United States)
For purposes of this course, each of the four days is divided into two modules, resulting in a total of eight modules for the entire course. The outline presents teaching objectives, lectures and case work in each of the different modules.
27-29 Feb 2012 (New York, United States)
17-19 Oct 2012 (New York, United States)
The aim of this course is to provide participants with exposure to leveraged and mezzanine financing techniques in the context of M&A and private equity structures.
11-13 Jun 2012 (New York, United States)
The aim of this course is to provide participants who already have some transaction experience with further exposure to M&A, company valuation and deal structuring and financing. You will also be introduced to international practice in executing mergers and acquisitions, including an appreciation of today's market practices and procedures including due diligence, accounting issues and valuation techniques.
10-13 Dec 2012 (New York, United States)
Advanced Corporate Finance Techniques explores the broad realm of complex financing tools available to corporate issuers. You will develop strategies used to create value-adding debt financing transactions, considering many of the latest debt financing alternatives available today.
26-28 Mar 2012 (New York, United States)
This three-day course has been designed to provide participants with a solid understanding of the business valuation fundamentals and their application. The course emphasizes the practical aspects of the valuation process providing participants with an opportunity to develop and enhance their business valuation skills
10-13 Dec 2012 (New York, United States)
Bankers, investment managers, company executives and professionals in all corporate functions and in organizations servicing corporate need to have a current understanding of the financial issues that affect the process of launching an IPO. This program is designed to enable participants to become proficient in their understanding of the IPO process. It covers a broad spectrum of topics which are designed to ensure that participants are equipped with the financial skills necessary to understand how IPOs are arranged, managed, priced and distributed
11-13 Apr 2012 (Port of Spain, Trinidad and Tobago)
This training course is designed to provide delegates with a concrete understanding of all aspects of foreign exchange. Participants will learn how to identify and manage foreign currency exposure, how the foreign currency markets work and how to be an effective player in these markets. This intensive course uses a balance of lectures, workshops, case studies and discussions.
23-25 Aug 2012 (Miami, United States)
With the financial world currently undergoing significant changes, one of the most important challenges in banking is to reinforce the syndicated loan function and to refresh techniques given the evolution of the syndicated loan market. This course enables you to ensure that your staff – whether bankers, lawyers or investment professionals – have the tools to cope with the new environment.
23-27 Apr 2012 (New York, United States)
Company valuation is used for the purposes of investment, M&A or as part of internal measures of financial control. It is extensively applied when companies issue new shares, divest operations or acquire other companies. The rapidly growing private equity industry is also dependent on solid analysis. There are many different approaches to the analysis and valuation of companies and it is paramount to know when and how to apply what method. It is also essential to understand that company analysis is not an absolute science but also based on interpretation and judgment. This highly practical course will lead you quickly from the basics through to the more advanced valuation methodologies and modeling techniques
This course has now expired please email us to find out when the course will next be running.