Course Details
Course Outline
5 days course
Financial statement analysis
- Interpret the nature of a firm from a managerial finance perspective
- Identify the difference between finance and accounting
- Interpret the key components of the financial statements
- Demonstrate how business transactions affect the financial statements
- Calculate key financial, operating, and leverage ratios
- Assess the financial health and operational effectiveness of a firm using financial and operating ratios
- Identify the various sources and uses of a firm's funds
Financial forecasting
- Interpret the relationship between a firm's growth and its funding needs
- Apply financial statement analysis and financial ratios to a firm's funding needs
- Assess the financial dynamics and funding needs of a given firm
- Compile a firm's pro forma balance sheet and income statement
Discounted cash flow analysis
- Interpret the concept of the cost of capital and discounting cash flows
- Calculate the net present value of a stream of cash flows
- Interpret the difference between a corporate investment project's incremental earnings and its free cash flows
- Calculate a corporate investment project's free cash flows (FCF)
- Apply the concepts of sunk cost, cannibalisation, depreciation, and the tax treatment of losses to a valuation model
- Apply fundamental valuation in the real world
Optimal investing
- Compare an investment project's value under different assumptions
- Distinguish between sensitivity, break-even, and scenario analysis
- Calculate scenarios using Excel's Data Table tool
- Assess quantitative and qualitative assumptions used to draw up cash flow projections
- Identify key challenges when compiling valuations and forecasts in the real world
Funding strategies
- Identify the various sources of funding
- Interpret the concept of the opportunity cost of capital
- Apply investor behaviour and characteristics of the stock market to the calculation of the cost of capital
- Calculate an investment's required rate of return by using the CAPM formula
- Calculate a firm's weighted-average cost of capital
- Determine the optimal capital structure, considering interest tax shields and the costs of financial distress
Valuing entire companies
- Calculate a firm's value by applying the principles of fundamental valuation
- Calculate a firm's terminal value
- Interpret the relationship between fundamental and market values
- Interpret the efficiency of the market in valuing shares
- Apply valuation by comparables to value a firm's shares
- Identify the key characteristics of the M&A market
- Evaluate a takeover offer by applying the concepts of valuation
