In this course, you will learn how to perform analysis and valuation of privately held and publicly traded companies.
This course also covers the industry analysis, together with a detailed analysis of the company, including the analysis of the company’s financial statements, ratio analysis, determination of the company’s profitability, efficiency, solvency, and risk, as well as the analysis of the expanded measure of return on equity (including determining profitability and efficiency drivers) by using the DuPont Model.
It also covers in detail the Operating and Free Cash Flow, together with Free Cash Flow To The Firm (FCFF) and Free Cash Flow To Equity (FCFE), and their role in company valuation.
The Cash Conversion Cycle (also known as Operating Cycle) and its effect on the company’s operation are also explained in this course.
A separate lecture is dedicated to the WACC (Weighted Average Cost of Capital) and the explanation of its role in company valuation, including comparing the WACC (Weighted Average Cost of Capital) to IRR (Internal Rate of Return). The example showing how the WACC (Weighted Average Cost of Capital) is calculated, is reviewed in this lecture as well.
Elaborating further on the WACC (Weighted Average Cost of Capital) topic, this lecture also reviews the WACC components in detail, including:
– Cost of Debt (also referred to as the Required Rate of Return on Debt)
– Market Value of Company’s Debt;
– Cost of Preferred Stock (also referred to as the Required Rate of Return on Preferred Stock)
– Market Value of Company’s Preferred Stock
– Market Value of the company’s equity and how it’s determined.
– Cost of Equity (also referred to as the Required Rate of Return on Equity) and how it’s determined, by using: The Capital Asset Pricing Model (CAPM), including, estimating Beta of the privately held company, by using Beta of the similar publicly traded company;
The Dividend Capitalization Model and the “Build-up” method are discussed in this lecture as well.
In this course, you will also learn about the specifics of valuing privately held companies and start-ups, and what exit strategies are available to companies. Using an example, this course also explains how to perform the company valuation and estimate the value of the company’s equity, by using different valuation approaches and methods.
This course also contains downloadable PDFs files, related to the material presented in the lectures.
Important Notice: The goal of this course is to provide educational and informational background for understanding the processes and techniques of company analysis and valuation. Therefore, the content of this course does not intend to provide any expert legal, tax, accounting, investment, financial, or any other professional advice, in relation to any particular company or business.