The course extends the core theory introduced in the Principles of Finance by emphasizing its practical application to strategic financial decisions and potential problems.

COURSE OBJECTIVES

• Understanding and analyzing income statements
• Understanding and analyzing balance sheets
• Understanding and analyzing cash flow
• Understanding financial modeling usage in financial reporting
• Use of Discounted Cash Flow (DCF) and Weighted Average Cost of Capital
• Use of Excel in financial modeling

DURATION

5 Days

WHO SHOULD ATTEND

The course targets financial analysts, Business entrepreneurs, accountants, bookkeepers, business managers, investment officers, and managing directors.

COURSE OUTLINE

Introduction to evaluation

• Importance of evaluation
• Enterprise value and equity value

Comparable Company Analysis

• Selection of companies that are comparable
• Spreading of comparable companies
• Analyzing the valuation multiples
• Understanding value and making conclusions

Precedent Transaction Analysis

• selection of transactions that are comparable
• Spreading comparable transactions

Analysis of Discounted Cash Flows (DCF)

• Unlevered free cash flow
• Free cash flow forecasting
• Terminal value forecasting
• Presentation of value and discounting
• Stub periods
• Sensitivity analysis

Weighted Average Cost of Capital (WACC)

• Estimating equity cost using CAPM
• Estimating debt cost
• Analysis of WACC

Building and Integrated Cash Flow Model

• Introduction to financial modeling
• Financial statement links
• Understanding circularity
• Set up and formation of the model
• Selection of model drivers and assumptions

Modeling and Projecting the Financial Statements

• Income statement projection
• Balance sheet projection
• Cash flow statement projection
• Debt and interest schedule creation
• Revolver modeling

Utilizing and Concluding the Model

• Output analysis
• Stress testing of the model
• Fixing of modeling errors
• Techniques of advanced modeling
• Creating a Discounted Cash Flow (DCF) Analysis using the model

GENERAL NOTES

• This course is delivered by our seasoned trainers who have vast experience as expert professionals in the respective fields of practice. The course is taught through a mix of practical activities, theory, group works and case studies.

• Training manuals and additional reference materials are provided to the participants.
• Upon successful completion of this course, participants will be issued with a certificate.