DCF

Participants learn how to build a discounted cash flow valuation model. We begin by making financial projections for the case company. We detail how the projections are linked to the company’s position in the industry, and the structure of the industry.

A detailed ratio analysis is used to establish the reasonableness of the forecasts and to identify when the target company reaches steady state.
We analyse the weighted average cost of capital, breaking it down into its components.
We complete the valuation model by calculating terminal values, using the perpetuity growth method and the value driver formula. The free cash flows are discounted to arrive at enterprise values and the implied share price. Once the valuation is complete, participants perform several checks on the analysis using key ratios, and sensitivity and scenario analysis.

Suitability

This course is suitable for anyone with basic accounting skills, financial maths skills and excel skills.

Learning Outcomes

At the end of this course participants will be able to:

Make financial projections including capex and working capital
Link company’s competitive positioning and industry attractiveness to financials
Normalise earnings
Calculate cost of equity and WACC
Deduce terminal value
Discount cash flows back to find enterprise value
Derive equity value
Perform sensitivity analysis

Course Content

Making financial projections including capex and working capital
Linking company’s competitive positioning and industry attractiveness to financials
Normalising earnings
Cost of equity and WACC
Terminal value
Discounting cash flows back to find enterprise value
Deriving equity value
Sensitivity analysis

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of our clients would recommend Alpha to a colleague or peer

90%

of a cohort was promoted within 2 years after participating in an Alpha course.

96%

of participants felt more confident in their role, following an Alpha commercial leadership course.

Why study with Alpha?

Innovation and creativity born from experience

We are thought leaders in instructional and learning journey design and holistic solution architects. We have extensive finance and investments experience combined with skills application to deliver performance improving results. We develop immersive learning environments that maximize time to productivity, support talent retention and added value to improving quality of hires.

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We are focused on mining the embedded organisational intellectual capital for the benefit of the next generation. We create and curate best in class practice gathered from our experience with the leading financial institutions. We design our programmes with the end in mind – what results are you trying to achieve with this intervention? What metrics will we set ourselves to achieve that?

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Quality and innovation, using current market and industry best practices, have made us a trusted partner in delivering dynamic and motivating training for the financial and capital markets. Our programmes are generation proof and responsive to evolving learner needs and styles. Our solutions use a multi-stakeholder engagement strategy that expands beyond relationships between the learner and learning provider. We create connections with managers, peers and the wider business to drive impactful return on investment..

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