Event 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
Thursday November 1, 2018
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.
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