Key valuation skills to accurately value a project or company
This program is eligible for 18 CE credit hours as granted by CFA Society VBA Netherlands
Understanding company valuation is a key competitive advantage in M&A as well as fundamental for any corporate investment decision making. In this 3-day Valuation program we cover valuation from all aspects: from successful application of the Net Present Value Rule in capital budgeting to obtaining reasonable estimates of firm value in an M&A context using either the multiples or the discounted cash flow method. You will be exposed to several up to date valuation techniques and lots of practice in valuing projects and entire corporations. We will discuss how financing affects value and what role it plays in valuations. You will learn how to obtain reasonable cash flow estimates, how to estimate the “continuing value” used in company valuations, and how to estimate the cost of capital.
How you will benefit
- During this short period of time you will gain valuation skills that allow you to identify valuable investment opportunities, to estimate their value to the firm, and critically evaluate them.
- You will learn how firms are valued in financial markets and what drives their value. This allows you to better evaluate the value impact of any corporate decision that you are involved with.
- After the program you are able to participate in all aspects of your firm’s financial decision making.
One of the most important tasks of top management of companies is to make sound investment decisions when investing e.g. in new product lines or factories. We discuss:
- How to perform capital budgeting professionally
- How to assess whether and how much any given investment decision creates value to the shareholders
- The merits of several different methods to evaluate investments, including Internal Rate of Return (IRR)
Valuing Entire Companies
We first provide an overview of the most popular methods used in valuing entire companies. In particular, we will examine the multiples method and the enterprise free cash flow method (also commonly known as the WACC method). We will learn each method’s basic framework, and their pros and cons. In particular we:
- Focus on understanding the logic in how the financial market sets the market values for firms
- Apply the learning to several real valuation cases
- Emphasize methods to spot potential forecasting inconsistencies, such as excessively optimistic assumptions about profitability of new investments
- Discuss how to obtain an appropriate Weighted Average Cost of Capital (WACC)
Valuation Techniques: Cases
We practise valuation techniques again in connection with new cases, in particular we will:
- Learn more about the valuation techniques applied in mergers and acquisitions and leveraged buyouts
- Discuss the role of corporate governance in valuation
- Discuss company valuation and market forces, such as industry trends, barriers to entry, corporate strategies and financial market conditions
Who should attend
Valuation is designed for those who desire to obtain essential skills and knowledge about the theory and practice of financial valuation. The material covered is highly relevant for wide range of professionals – e.g. general managers and advisors as well as finance specialists – particularly those involved in capital budgeting decision-making. Bankers, consultants, lawyers and professionals in other fields can all enhance their professional knowledge with an understanding of the principles of valuation.
For those who wish to gain a deeper understanding of corporate finance or valuation methods, this program can be used as a stepping stone to other AIF courses.
Matti Suominen is a Professor of Finance at the Aalto University School of Business in Helsinki. From 1997 until 2006 he was a Professor of Finance at INSEAD. Matti has previously worked as an Engagement Manager at the European Corporate Finance Practice of McKinsey & Co. In addition, for several years he was involved with a European hedge fund, focusing on equity valuations to support the portfolio management. He has taught extensively in various MBA and executive programs, receiving numerous best teacher awards including one from INSEAD. Matti holds a PhD in Financial Economics from the University of Pennsylvania, where he has also worked as a Visiting Associate Professor at Wharton.
> Read his recently published article in The Wall Street Journal: "The Dark Magic of Month-End Trades"
Dates & fees
25 - 27 November 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 November 2017 session would recommend the Valuation program to their colleagues.
"Starts with the basics and goes into every detail. Good for beginners."
Legal Counsel M&A
Total Specific Solutions
"Good basic knowledge of valuation with relevant cases and insights from participants from different areas."
Green Giraffe Capital Partners
"Excellent content and professor."
Business Development Manager
Saudi Technology Development and Investment Company (TAQNIA)
"Teaches the basics of valuation very clearly!!"
Head Risk Management, Corporate Banking
ABN AMRO Bank