Equity Valuation Workshop

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.