Valuing Equities

• Basic principles of value
• Company valuation and deriving share price
• Enterprise and equity values

Discounted Cash Flow (DCF)

• Introduction to DCF mathematics
• Deriving free cash flow
• Treatment of taxation, interest and inflation
• Terminal value calculations
• Company values and share prices

Discount Rates

• The cost of equity
• The Capital Asset Pricing Model (CAPM)
• The cost of debt
• Weighted Average Cost of Capital (WACC)
• Identifying an appropriate discount rate

Earnings and Revenue Multiples

• Using multiples as valuation tools
• Price/Earnings ratios, EBIT and EBITDA multiples
• Sales multiples

Alternative Valuation Methods

• Assets basis of valuation
• Dividend basis of valuation
• Industry-specific measures
• Composite and Greenfield valuations
• Valuation of intangible assets

Applications in Practice

• Flotation: the pricing process
• Valuing acquisitions
• Valuing synergies
• Which method is best?