DCF Valuation Analysis - Schulich School of Business

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Date and Time

Location

Location

Schulich School of Business - York University

111 Ian MacDonald Blvd

Room: S128

North York, Ontario M3J 1P3

Canada

Refund Policy

Refund Policy

Refunds up to 7 days before event

Event description

Description

This hands-on course is focused on the practical implementation of a Discounted Cash Flow (“DCF”) valuation analysis. There will be a discussion of various valuation methodologies and the appropriateness of using a DCF methodology to value a company. Participants will incorporate a DCF analysis into the financial model that was created on the first day. Common DCF errors will also be discussed and reviewed.


Topics Include

  • Discuss various valuation methodologies and the appropriateness of using a discounted cash flow methodology to value a business
  • Properly calculate a company’s levered or unlevered free cash flows
  • Build a terminal year in the model to create a steady-state perpetual cash flow
  • Review critical terminal year assumptions including Capex, working capital, margins and income taxes
  • Calculate the tax impact of unlevering a company’s cash flows
  • Use two common styles to create a discounted cash flow (DCF) analysis
  • Calculate the company’s cost of capital and choose an appropriate weighted average cost of capital (WACC) range
  • Discount the cash flows in the forecast period and ensure that the cash flows are discounted to the correct period
  • Discuss various methodologies to value the terminal period
  • Discuss common discounting errors and review the magnitude of discounting the cash flows to the wrong time period
  • Use a number of powerful Excel tools to sensitize the outputs
  • Incorporate appropriate credit ratios that impact a company’s covenants
  • Create “flags” to warn the user when a covenant has been tripped
  • Conditionally format output tables to highlight specific results


Who Will Benefit
Participants will learn to recognize and avoid the most common errors that finance professionals make when creating a DCF analysis. This course will also include a number of Excel tips and skills to help a user check and audit a financial model.


Date & Time
Friday, March 15, 2019
8:30 am to 5:00 pm


Special Instructions


  • Attendees must bring their own laptop with access to Excel.
  • Attendees should have a solid grasp of basic accounting fundamentals and proficiency with Excel prior to attending.

Date and Time

Location

Schulich School of Business - York University

111 Ian MacDonald Blvd

Room: S128

North York, Ontario M3J 1P3

Canada

Refund Policy

Refunds up to 7 days before event

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