Business Valuation Techniques and Excel Dashboards and Data Visualisation
Business Valuation Techniques and Excel Dashboards and Data Visualisation
Course Introduction
Using the three main methods, comps, precedents and DCF Analysis, the material in this module will provide you with the skills you need to perform a detailed business valuation.
‘It’s all in the detail’
Course Outline
Course description part 1 – Business Valuation Techniques
Perform a detailed business valuation
This module is invaluable to those who are in need of a detailed, step-by-step explanation of how to value a company based on comparable companies, a Discounted Cash Flow Model as well as past M&A transactions.
Section 1 – Valuation using equity multiples
In this section, we examine how various equity multiples are calculated and learn the drivers of equity multiples. We also value a business using equity multiples. This section incorporates sophisticated navigation and search tools that enable you to work at your own pace with pop quizzes that test what you have just learnt.
You will also learn how to:
- Analyse and calculate valuation multiples
- Understand the drivers of equity multiples
- Value a company using equity multiples from precedent transactions and comparable public companies
Section 2 – Valuation using EV multiples
In this section, you will learn how to calculate various enterprise value multiples, understand the drivers of such multiples as well as value a business using EV multiples. This section also includes two hands-on case studies and solutions and a PDF valuation reference guide that can also be downloaded for future reference.
You will also learn how to:
- Calculate various enterprise value multiples
- Grasp the drivers of EV multiples
- Value a business using enterprise value multiples
Section 3 – How to value a business using discounted cash flows
In this section you will learn how to value a business using discounted cash flow techniques. This section also includes two Excel-based case studies and solutions and a PDF valuation reference guide that can be downloaded for future reference.
You will also learn how to:
- Value a business using a two-stage DCF valuation model
- Calculate free cash flow to equity and to the firm
- Pinpoint what DCF discount rate to use
Section 4 – How to determine the cost of capital
In this section you will learn how to calculate the cost of equity, cost of debt as well as the weighted average cost of capital (WACC). This section also includes two hands-on case studies and solutions and a PDF valuation reference guide that can be downloaded for future reference.
You will also learn how to:
- Calculate the cost of equity funding
- Calculate the cost of debt funding
- Calculate a company’s weighted average cost of capital (WACC).
Using the three main methods, comps, precedents and DCF Analysis, the material in this module will provide you with the skills you need to perform a detailed business valuation.
Introduction
Downloadable files
Table of contents
Learning objectives
Why perform business valuation?
Art vs. science
Overview of valuation methods
Equity Value vs. Enterprise Value
Equity value vs. enterprise value
Terminology
Net debt defined
Exercise template
Enterprise value and equity value calculations
Valuation Multiples
Introduction to multiples
Allocating cash flow by investor type
EV/Revenue multiple
EV/EBITDA and EV/EBIT multiples
EV/Capital Employed and ROCE
Free Cash Flow
Price-Earnings (P/E) ratio
Price-Book (P/B) ratio
Price-Cash Flow (P/CF) ratio
When to use each type of multiple
Valuation multiples and ratios summary
Using the three main methods, comps, precedents and DCF Analysis, the material in this module will provide you with the skills you need to perform a detailed business valuation.
Comparable Company Analysis (Comps)
Pros and cons of comparable company anlysis
Steps for performing comps analysis
Selecting a comps universe
Exercise template
Comps table calculations
Precedent M&A Transactions (Precedents)
Pros and cons of M&A precedents
Example precedent transaction
Steps in performing precedent analysis
Selecting M&A transactions
Exercise template
Precedent transactions calculations
Discounted Cash Flow (DCF) Analysis
Pros and cons of DCF analysis
Gathering information
Comprehensive analysis
PEST and Porter’s 5 Forces
Competitive advantage and lifecycle analysis
Assessing management
SWOT analysis
Determining assumptions
Building the cash flow model
Free Cash Flow to the Firm (FCFF)
Exercise download
Dates and timeline for the model
Calculating free cash flow to the firm
Terminal value calculation
XNPV calculation
XIRR calculation
Weighted Average Cost of Capital (WACC)
Introduction to WACC
Factors affecting the cost of equity
Capital Asset Pricing Model (CAPM)
Beta
WACC formula
Exercise download
WACC and Beta calculations
Presentation of results
Analysis and presentation of results
Exercise download
Overview of the Football Field Chart
Calculating comps values for the chart
Calculating precedents values for the chart
Final data for the Football Field
Building and formatting the chart
Using the three main methods, comps, precedents and DCF Analysis, the material in this module will provide you with the skills you need to perform a detailed business valuation.
Conclusion
Download completed valuation analysis model
Recap of learning objectives
Final thoughts
Using the three main methods, comps, precedents and DCF Analysis, the material in this module will provide you with the skills you need to perform a detailed business valuation.
Part 2 – Excel Dashboards and Data Visualisation
Build a custom Excel dashboard
In this section you will learn how to build a custom Excel dashboard using professional data visualisation techniques. Upon completion of this section you will have gained an in-depth understanding of how to present a story using data, graphs, charts and other visual elements.
Who benefits from studying this module?
If you are a financial analyst working in corporate finance this Excel dashboards module is definitely for you. A number of elements are covered in this module including financial planning & Analysis (FP&A), equity research, corporate development and investment banking.
What will I learn from this module?
All you need to know about the most critical data visualisation techniques including:
- How to focus attention
- Using white space effectively
- How to tell a story using data
- Narrative techniques
- Various visual elements
- How to use affordances
- Storyboarding techniques
This module also covers how to create a dashboard in Excel. The main dashboard topics include:
- Page layout and design
- Line charts
- Design charts
- Column and bar charts
- Gauge charts
- Design and formatting techniques
This online module also includes:
- Step-by-step instructions
- Excel dashboard techniques
- Formatting and design tips
- Downloadable Excel dashboard templates
Course curriculum
- Introduction
Course outline
Downloadable files
Course objectives
Prerequisites
- Data Visualization Overview
Data visualization overview
Know your audience
Context
Tailor your message
The big idea
Storyboarding
Quiz
- Visuals
Introduction
Text and tables
Scatter plot vs. line chart
Bar and column charts
Combination charts
Waterfall, tornado, and gauge charts
What not to do
Exercise – formatting and optimizing a chart
Exercise – solution and demonstration
Quiz
- Focussing attention
Focusing attention
Pre-attentive attributes
Colour
Enclosure
Shape
Other attributes
- Storytelling
Storytelling
Beginning
Middle
End
Narrative structure
Repetition
Repetition tactics
- Dashboards
Dashboards introduction
Why dashboards?
Executive decision making
Dashboard making process
Setting page orientation and print area
Making sections
Building a two series line chart
Building an area chart
Building a column and marker chart
Gauge charts – data setup
Gauge charts – doughnut
Gauge charts – pie
Creating multiple gauge charts
Final product
- Conclusion
Key concepts
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