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

Duration

Two days

Learning Objectives

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

Prerequisites

Familiarity with the Cash Equities Markets is desirable.

Quartic Support

Quartic is here to support you at every stage of your studying. Tutors are available by phone, e-mail or Skype, or in person if you are coming to face-to-face classes. Our Support team can assist with every aspect of administration.

Please contact us on +44 (0) 20 7776 7500 or email us at info@quartic.co with any questions you may have and we will be happy to help you.

Registration for : Equity Valuation Workshop

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