CORPORATE VALUATION AND FINANCIAL MODELING

CORPORATE VALUATION AND FINANCIAL MODELING

MODULE 1: INTRODUCTION TO VALUATION AND METHODS 08 Hours

Introduction to Corporate Valuation, Approaches to valuation, Role of Valuation, Concepts of value, Features of valuation and

its process. Methods: Adjusted Book Value Approach, Stock & Debt Approach and Direct Comparison Approach, Discounted

Cash flow Approach and Analyzing historical performance, Estimating the Cost of Capital, Forecasting performance-Estimating

the continuing value-Calculating and interpreting the results.

MODULE 2: BUSINESS VALUATION & FINANCIAL MODELLING 20 Hours

Valuation Models: Asset-Based Approach, Earnings Based Approach (Earnings-Capitalisation Method, P/E Ratio), Relative

Valuation, DCF Approach of Two and Three stage model, Equity DCF Model: Dividend discount model, Free Cash Flow to

Equity (FCFE) model, Adjusted Present Value (APV model, Economic Value Added method and Valuation of Bond, Valuation

of Equity shares.

FINANCIAL MODELING

Preparation of spread sheet: Cash Flow and Free Cash Flow Computation, Cash Flow Estimation, Estimate Cost of Equity, debt

and Capital, Stock Valuation using discounting of (a) Dividends (Dividend discount model - DDM) (b) Free Cash Flow to Firm

(FCFF) and (c) Free Cash Flow to Equity (FCFE).

MODULE 3 INTELLECTUAL CAPITAL VALUATION 04 Hours

Components and Valuation of Intellectual capital: Market to book ratio. Tobin’s Q Ratio (basic problems), Analytical

Approaches: Balanced Score card, Human Resource Accounting.

MODULE 4: CORPORATE RESTRUCTURE 10 Hours

Mergers- types of merger, theories of mergers, reasons for merger, mechanism of a merger Cost and Benefit of a merger,

synergy: operating, financial and managerial synergy of mergers, M & A impact on stakeholders and concept of Due diligence.

Corporate restructuring: significance, Forms of restructuring: Divestiture, sell off, Spin-off, Equity Carve-outs, leveraged buy

outs (LBO), management buy-outs, management buy-ins, Tracking stock and Going Private.

MODULE 5: FINANCIAL EVALUATION OF M&A 10 Hours

Merger as capital budgeting decision: DCF Approach, Adjusted Present Value Approach (APV, Exchange Ratio (Swap Ratio)-

Methods of determining exchange rate and determining stakeholders gain or loss for M&A decisions.

MODULE 6: TAKEOVER & DEFENCE STRATEGIES 04 HoursPage | 18

Meaning and types of takeovers and SEBI Regulation on takeover, Anti-takeover defense: strategies, Anti-takeover amendments:

Legal aspect of M&A, Combination and Competition Act, 2002