Introduction

There are as many models for valuing stocks and businesses as there are analysts doing valuations. While we often talk about the differences across valuation models, we seldom talk about what they share in common. In this seminar, we hope to emphasize the shared foundations of valuation approaches and how to bridge differences among them. The first part of the seminar will cover the discounted cash flow valuation, and the estimation issues that come up when estimating discount rates, cash flows and expected growth. In addition, it will look at value enhancement through the prism of discounted cash flow models. The second part of the seminar will focus on what we term the loose ends in valuation and follow up by looking at “difficult – to – value” companies across the spectrum (life cycle, sectors). The third part of the seminar will examine relative valuation, i.e., the valuation of assets/businesses by looking at how similar assets/businesses are priced by the market

• The mix of basic valuation techniques & applications provided in this seminar will appeal to a widely diverse audience.
• Equity research analysts, who are interested in examining alternatives to the multiples that they use or the linkage to discounted cash flow models.
• Corporate financial officers, who want to understand the details of valuation, either because they are planning acquisitions or are interested in value enhancement strategies for their firms.
• Analysts involved in mergers and acquisitions, who would like to acquire a wider repertoire of valuation skills.
• Portfolio Managerswho are interested in the effects of corporate restructuring on firm value, and the implications for portfolio management.
• Anyone interested in valuation

• Value any kind of firm in any market, using discounted cash flow models (small and large, private and public)
• Value a firm using multiples and comparable firms.
• Analyze and critique the use of multiples in valuation.
• Value “problem” firms, such as financially troubled firms and start – up firms.
• Estimate the effect on value of restructuring a firm.

Aswath Damodaran is the Kerschner Family Chair Professor of Finance at the Stern School of Business at New York University. He teaches the corporate finance and valuation courses in the MBA program. He received his MBA and Ph.D from the University of California at Los Angeles. His research interests lie in valuation, portfolio management and applied corporate finance. He has published in the Journal of Financial and Quantitative Analysis, the Journal of Finance, the Journal of Financial Economics and the Review of Financial Studies.

 

Agenda

09.00 am - 05.00 pm

Registration and Welcome
Tea and Coffee

 

Day 1

Topics on the first day of the training are:

The Discounted Cash Flow Model
Setting up the Model
The Big Picture of DCF Valuation
Valuation Examples
The Discount Rate Question
Risk premiums and Betas
The Cost of Debt
Estimating Cash Flows
Estimating Growth Rates
Estimating Growth Patterns
The Terminal Value
Closing Thoughts on DCF
valuation

Day 2

On the second day, the following issues in valuation are explored: 

Cash, Cross holdings and other assets
The Value of Control, Synergy and Transparency
The Liquidity Discount
Employee Stock Options Challenges in Valuation
Valuing young, growth companies
Valuing mature companies in transition
Valuing declining and distressed companies
Valuing cyclical companies
Valuing commodity companies
Valuing financial service companies
Valuing private businesses
Relative Valuation
Deconstructing multiples
Comparable company valuation