Online – Advanced Valuation

Distinguish value creation from value destruction and ensure competitive success

Program flyer
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Next available date: 14 December

Some of our programs are available as live online courses. The feedback has been excellent and in the virtual courses the learning has been at least equal to that during the courses organized in traditional in-class setting. Online courses allow easy sharing of electronic material during the class in a format that helps the participants to better develop their own modeling skills. The virtual breakout rooms provide an excellent setting for group work. 

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.

In this program, you will be exposed to a conceptually challenging curriculum, exploring both the theoretical basis and practical application of the major elements of discounted cash flow valuation. You will 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. You will learn about the challenges of forecasting the important distinction between estimating expected future free cash flows and predicting future free cash flows. You will also learn how to understand and estimate the appropriate discount rate for the forecasted cash flows. Above all, you will 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

Program length
4 days

Day 1 11:00 – 19:00
Day 2 11:00 – 19:00
Day 3 11:00 – 19:00
Day 4 11:00 – 19:00

During the Advanced Valuation program we 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 you to deepen, and exhibit, your understanding of the fundamental concepts. These cases will also enable you 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, 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

Valuation Concepts

  • 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
  • Excel model building
  • 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
  • LBOs, emerging markets and other complications

 

Advanced Valuation is designed for experienced professionals who want to expand their knowledge and gain new insights into company valuation.

Prerequisite
Participants 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.


Faculty

Kevin Kaiser

Kevin Kaiser is Senior Director of the Alternative Investments Initiative and Adjunct 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…

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  • 4 days
  • € 3950
  • Corporate Finance, Financial Analysis
  • English
  • 4.8 / 5

Available dates

Need help?

Find your program here or contact us directly for personal advice:
Call us at +31 20 520 0160 or email us at [email protected].

Program flyer

For a more detailed program description and information regarding faculty please download the program document.



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