Equity Valuation Workshop
For Companies listing on Exchanges, understanding the methodologies employed by Investment Bank Analysts & investing Fund Managers is key to establishing a healthy working relationship for Investor Relations departments & their new Shareholders.
ABOUT THE COURSE
The Valuation ‘tools of the trade’ vary between sectors; understanding which to apply, where & when, is essential knowledge for anyone involved in today’s Equity Markets, either as an Investor or in an advisory Client-facing role.
The programme will be interactive, with the emphasis on the practical rather than theoretical. Participants will require access to laptops for the Excel-based Valuation modelling Case Studies.
WHO SHOULD ATTEND?
Professionals working in:
- Investor Relations
- Corporate Communications
- Stock Exchanges
- Corporate Finance
- Brokerage Research
- Fund Management
- Equity Capital Markets
At the end of the course delegates should have a broad understanding of the following subject areas.
- The love affair with the Price/Earnings ratio – What is an appropriate Multiple?
- Shortcomings of this valuation metric – A more useful tool – PEGs
- Return on Assets (RoA)
- Price to Book Values (premiums and Discounts) – The Real Estate sector
- Resource Companies – Net Asset Values
- Embedded and Appraisal Values – The Insurance sector
- Intangible Assets – What are Brand names worth?
- Price to Sales, the basics
- Enterprise Values – What are they and why were they developed?
- EV Multiples – EBITDA, Sales
- Valuing Banks – Financial structure of Assets vs Liabilities
- Net Interest Income vs non-Interest Income
- Capitalisation & Liquidity – Tier 1 Ratios (Equity vs Risk Weighted Assets)
- Asset Quality – Non-performing Loans
- Cost-Income Ratios, Returns on Equity (RoE)
- What is relevant for an Oil & Gas Company? Not Revenues or EPS
- Reserves Terminology – Proved, Probable, Possible
- Production Terminology – Barrels of Oil Equivalent
- Reserves/Production Ratios
- Enterprise Values vs EBIDTA (X); Reserves; Production
- Discounted Cash Flow Modelling
- Risk Free Rates, Betas & the Equity Risk Premium
- Deriving the Cost of Equity using CAPM
- Deriving the Cost of Debt
- The Discount Rate – Weighted Average Cost of Capital
- Terminal Value derivation – forecasting into Perpetuity or exit multiples
- Dividend Yields and Cover – who pays them and how much
- Dividend Discount Models – The Bank sector revisited
- Advantages and Disadvantages of this approach
Familiarity with the Cash Equities Markets is desirable.
Please contact us on +44 (0) 20 7776 7500 or email us at [email protected] with any questions you may have and we will be happy to help you.