Corporate Valuation And Financial Modelling

                                                                                               Syllabus

Module 1: Introduction to Valuation Methods and Standards            08 Hours

Introduction to Corporate Valuation, Approaches to Valuation, Role of Valuation, Concepts of Value, Valuation Standards, Features of Valuation and its Process.

Methods: Adjusted Book Value Approach, Stock & Debt Approach and Direct Comparison Approach, Discounted Cash Flow Approach and Analysing Historical Performance, Estimating the Cost of Capital, Forecasting Performance-Estimating the Continuing Value- Calculating and Interpreting the Results, Beta – Un-Levering and Re-Levering.

Module 2: Corporate Valuation: Assets, Market and Income Based Valuation Methods               20 Hours

Valuation of Firm and Valuation of Equity – Net Asset-Based Approach, Earnings Based Approach (Earnings-Capitalisation Method, P/E Ratio), Relative Valuation and Chop Shop Method.

DCF Approach of Two and Three Stage Model, Equity DCF Model: Dividend Discount Model, Free Cash Flow to Equity (FCFE) Model, Adjusted Present Value (APV) Model, Economic Value Added Method and Valuation of Bond, Valuation of Equity Shares.

Financial Modeling

Preparation of Spread Sheet: Cash Flow and Free Cash Flow Computation, Cash Flow Estimation, Estimate Cost of Equity, Debt and Capital, Stock Valuation Using Discounting of (a) Dividends (Dividend Discount Model - DDM) (b) Free Cash Flow to Firm (FCFF) and (c) Free Cash Flow to Equity (FCFE).

Module 3: Advanced Issues in Valuation and Performance Metrics 06 Hours

Components and Valuation of Intellectual Capital: Market to Book Ratio. Tobin‘s Q Ratio, Analytical Approaches: Balanced Score Card, Human Resource Accounting, Valuation of Private Companies and Valuation of Start-ups.

Module 4: Corporate Restructuring                                                          08 Hours

Corporate Restructuring: Ownership Restructuring, Business Restructuring, Asset Restructuring, Organisational Restructuring.

Financial Restructuring - Designing or Redesigning Capital Structure, Financial Restructuring in the Event of Change in Legal Requirements, Financial Restructuring in the Event of Continuous Losses, Buy-back of Shares, Rights Issue, Convertible Instruments, Callable Bonds.

Module 5: Financial Evaluation of M&A                                                10 Hours

Valuation of Target Firm, Financing of Mergers and Acquisitions, Determination of Exchange Ratio – Conn & Nielson Model, Terms of Merger; Feasibility of Mergers.

Module 6: Takeover & Defense Strategies                                              04 Hours

Meaning and types of takeovers and SEBI Regulation on Takeover, Anti-takeover Defence: Strategies, Anti-takeover Amendments: Legal Aspect of M&A, Combination and Competition Act, 2002.