Deepening your knowledge of valuation concepts
This program is eligible for 24 CE credit hours as granted by CFA Society VBA Netherlands
Professionals in all roles in business, from the C-suite executives responsible for investment decision-making and corporate finance strategy to all those who advise and support them, require an understanding of the value impact of business decisions. The field of valuation is full of short-cuts and rules-of-thumb which, while quick and pragmatic, may inadvertently result in damaging, or even catastrophic, investment decisions. In the field of valuation, it is all too tempting to slip into simple mechanical processes without analyzing why one is doing things in a certain way. Indeed, the failure to understand the deficiencies in the standard approaches, and inability to ask the right questions, may explain why so many investments and acquisitions result in the destruction – rather than creation – of value.
Advanced Valuation program, participants with experience in valuation are exposed to a conceptually challenging curriculum, exploring both the theoretical basis and practical application of the major elements of discounted cash flow valuation. They learn to differentiate between long-term value-creating strategies and short-term indicators, such as share price, earnings per share, market share, revenue growth, increased profit and customer satisfaction. Above all, they learn to ask the questions that will build value for the future.
How you will benefit
Understand the “why we do it that way” behind valuation concepts you practice daily
Enhance your awareness of the key finance principles which underpin our approach for estimating the discount rate used in valuation
Develop the capability to distinguish value creation from value destruction to ensure competitive success and the long-term survival of your company
Learn and practice a process for conducting a data-driven, theoretically correct, valuation
Be able to handle cross-border, emerging market, and other complicated valuations
Question common practices and identify common mistakes and misunderstandings
Advanced Valuation will work through a series of conceptual and numeric examples, conducted as group work as well as in plenary discussion, in addition to a long case study enabling participants to deepen, and exhibit, their understanding of the fundamental concepts. These cases will also enable participants to practice the steps in the data-driven, unbiased, valuation process being taught in this program. The process and the conceptual basis for this approach to valuation will be explained and elaborated on Day 1, and the refinement and application of the process will be further illustrated, and practiced by participants, in the case studies and class discussions of the remaining three days. The main topics to be covered include:
Conceptual Basis and Building Blocks of DCF Valuation
What is value and why do we care?
Distinguishing price and value
Defining value and distinguishing value creation from value destruction
Distinguishing value creation from value transfer
The economics of supply, demand and sustainable competitive advantage
The connection between industry drivers of competitive advantage and valuation
Understanding and estimating the discount rate (the Opportunity Cost of Capital)
Distinguishing key performance indicators from value drivers
Performing historical/financial analysis
Developing an unbiased, data-driven forecast of future cash flows
The mechanics of estimating continuing value
The Opportunity Cost of Capital and Complications
Components of the discount rate (the Opportunity Cost of Capital), including the risk-free rate and adjustment for risk
Incorporating risk – diversifiable versus non-diversifiable risk and asset pricing models (CAPM, APT)
The impact of leverage and the Adjusted Present Value (APV) and WACC methods
Emerging markets and other complications
Who should attend
Advanced Valuation is designed for experienced professionals who want to expand their knowledge and gain new insights into company valuation.
PrerequisiteParticipants should have valuation experience and be familiar with the basic valuation concepts, such as definition of free cash flows, the costs of capital, the Capital Asset Pricing Model and/or the Arbitrage Pricing Theory. For those who do not have sufficient knowledge of valuation theory, AIF’s
Valuation program can serve as an introduction to the topic.
Kevin Kaiser is Senior Director of the Alternative Investments Initiative and Adjunct Full Professor of Finance at the Wharton School of the University of Pennsylvania. He was Professor of Management Practice and on the finance faculty at INSEAD from 1992 until 2017.
Kevin’s research has focused on private equity, corporate restructuring and financial distress, more recently oriented around corporate governance and management for value creation. Kevin holds a BA (Honours) in Economics from The University of Western Ontario and a PhD in Finance from the Kellogg Graduate School of Management at Northwestern University.
Dates & fees
18 - 21 December 2018
26 - 29 June 2019
> Program fee includes all study materials, books and software that are required for the program as well as daily luncheons.
Program fee is exempt from VAT for clients located in the Netherlands. For other EU and Non-EU clients, VAT may be due by client and will not be charged by AIF. Fees may be subject to change.
100% of the attendees in the June 2018 session would recommend the Advanced Valuation program to their colleagues.
"A life-changing week."
Menno Huson, Head of Strategy & Business Development
Kempen & Co
“The Advanced Valuation program has a different perspective of valuation that I think would add value in the way we consider value creation."
Associate, External Equities
Abu Dhabi Investment Authority (ADIA)
United Arab Emirates
"I attended this course because of the positive recommendations of colleagues and friends and therefore expected a lot. It turns out the course was even better than I expected, much better! I almost never give the maximum score because I think there is always something to improve, but this was the best course I have attended! Course is a big help for my work and answered questions I had for some time, but was unable to answer. Thank you!"
“The Advanced Valuation course was very unique and insightful, both materials and instructor. It mixes facts and theories with practical aspects in a way different from the academic way."
Hatim Al Ghamdi
Financial Analyst, Investment Research
“The program provides interesting insights into finance and it questions incorrect assumptions that finance professionals implicitly make in valuations.”
"This is the best and highest quality program I have ever taken, and one of the most amazing professors I have ever met. This will definitely be the program to recommend to others. I appreciate the quality choice of professor by AIF. Thank you very much!"
Executive, Transaction Advisory Services
Ernst & Young (CIS)
"It gives new insights to valuation methods that we use on a daily basis. The conceptual way of teaching goes beyond simple mechanics and makes you think about why you are doing certain things in your daily work."
Business Analyst, Fund Investment