Introduction to Equity Valuation

This course provides participants with an introduction to equity valuation and the balance sheet framework.

It explains the different approaches and models for equity valuation and the relative merits of each. The course compares enterprise and equity value and gives participants the opportunity to practice calculating these key valuation metrics.


This course is for individuals new to investment banking and the financial markets.

Learning Outcomes

At the end of this course participants should understand:

  • The balance sheet framework for valuation
  • The four key approaches to valuation
  • The relationship between enterprise value (EV) and equity value

Course Content

Basics of Valuation

  • Purpose of valuation
  • The balance sheet framework for valuation

Exercises: Valuation terminology and definitions

The Four Valuation Approaches

  • Relative valuation of equity using PE ratio
  • Intrinsic valuation of equity using dividend discount model (DDM)
  • Relative valuation of enterprise value using enterprise multiples
  •  Intrinsic valuation of enterprise using discount cash flow (DCF) model

Enterprise Value VS Equity Value

  • The relationship between EV and equity value
  • Intrinsic value VS relative prices

Exercises: Calculating EV and Equity Value


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