Equity Valuation Workshop

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For Companies listing on Exchanges, understanding the methodologies employed by Investment Bank Analysts & investing Fund Managers is key to establishing a healthy working relationship for Investor Relations departments & their new Shareholders.

The Valuation ‘tools of the trade’ vary between sectors; understanding which to apply, where & when, is essential knowledge for anyone involved in today’s Equity Markets, either as an Investor or in an advisory Client-facing role.

The programme will be interactive, with the emphasis on the practical rather than theoretical. Participants will require access to laptops for the Excel-based Valuation modelling Case Studies.
Who should attend?
Professionals working in:

  • Investor Relations
  • Corporate Communications
  • Stock Exchanges
  • Corporate Finance
  • Brokerage Research
  • Fund Management
  • Equity Capital Markets

Tutor: Paul Meadows

Duration: Two days

Learning Objectives
At the end of the course delegates should have a broad understanding of the following subject areas.

  • The love affair with the Price/Earnings ratio – What is an appropriate Multiple?
  • Shortcomings of this valuation metric – A more useful tool – PEGs
  • Return on Assets (RoA)
  • Price to Book Values (premiums and Discounts) – The Real Estate sector
  • Resource Companies – Net Asset Values
  • Embedded and Appraisal Values – The Insurance sector
  • Intangible Assets – What are Brand names worth?
  • Price to Sales, the basics
  • Enterprise Values – What are they and why were they developed?
  • EV Multiples – EBITDA, Sales
  • Valuing Banks – Financial structure of Assets vs Liabilities
    • Net Interest Income vs non-Interest Income
    • Capitalisation & Liquidity – Tier 1 Ratios (Equity vs Risk Weighted Assets)
    • Asset Quality – Non-performing Loans
    • Cost-Income Ratios, Returns on Equity (RoE)
  • What is relevant for an Oil & Gas Company? Not Revenues or EPS
    • Reserves Terminology – Proved, Probable, Possible
    • Production Terminology – Barrels of Oil Equivalent
    • Reserves/Production Ratios
    • Enterprise Values vs EBIDTA (X); Reserves; Production
  • Discounted Cash Flow Modelling
  • Risk Free Rates, Betas & the Equity Risk Premium
  • Deriving the Cost of Equity using CAPM
  • Deriving the Cost of Debt
  • The Discount Rate – Weighted Average Cost of Capital
  • Terminal Value derivation – forecasting into Perpetuity or exit multiples
  • Dividend Yields and Cover – who pays them and how much
  • Dividend Discount Models – The Bank sector revisited
  • Advantages and Disadvantages of this approach

Contact us on +44 (0) 20 7776 7500 or email us at info@quartic.co with any questions you may have and we will be happy to help you.

  • Prerequisites

Familiarity with the Cash Equities Markets is desirable.