For analysts with a good understanding of traditional valuation, accounting and cash flow, who want to understand alternative perspectives on stocks and include CFROI insights elements within their own valuation models
After completing this course you will be able to:
– Critically appraise common valuation approaches and understand the impact of different approaches on stock selection across the cycle
– Analyse the key adjustments made to company accounts under a cash flow return based approach
– Apply storytelling techniques based on growth in returns, asset growth & productivity and valuation
– Apply the analytical tools that allow stocks to be ranked & screened, and a fair value to be deduced
– Analyse the key ‘behind the scenes’ issues that can have a significant impact on the valuation
Valuation as a Component of The Investment Process
Traditional Valuation where the “Book Value” is non-meaningful
Recap of advantages/disadvantages of techniques, advantages/disadvantages and impact on fund style
– Multiples (Multiple based approaches (P/B, DY, P/E, EV/EBITDA. FCF Yield)
– Sum of the Parts
– Data Analysis: regression across accounting metrics
– Real Options
Deep Dive: CFROI analysis and methodology
– Basic ideas – EV, CFROI, CoC, EVA/EP, EV/NCI, Ec P/E
– Transitioning to corporate economic data, the key adjustments
– Storytelling using CFROI type analysis
Analysing and investing using CFROI Analysis
– Value destruction, cash flow and valuation
– Deducing a fair value
– Reverse DCF analysis (implied returns)
– Incorporating growth
– Fade models and CoC reversion
– Incorporating the cycle
– Shorting Stocks on valuation grounds
– Pensions Liabilities
– Extractive Industries
– Financial Services ( standalone or embedded)
Behind The Scenes Issues
– Cost of Capital (CoC)
– Revenue recognition
– Share Options
– Extractive Industries
– Pension Liabilities
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.
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?
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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The team are so friendly and pleasant to work with, everyone is very professional and keen to help us. Building a relationship over the past couple of years helps us to feel like the Alpha team are even more able to understand our needs and provide more proactive solutions.