Investment and Portfolio Analysis

Corporate Valuation - Part 1 (2021)


This eCourse consists of two modules. Modulce 1 introduces the common valuation techniques employed by analysts when valuing companies. These techniques fall under the general categories of absolute valuation methods (such as DCF analysis) and relative valuation methods (trading comps and transaction comps). The module outlines the high-level approach used in each of these methods and demonstrates how they can be combined to build a picture of a company's overall value.

Comparable company analysis, or trading comparables, is one of two methods that can be used to determine the relative value of a company (the other is transaction comparables, which is based on precedent transactions). Module 2 looks at each stage of comparable company analysis and describes how it is carried out from a practical point of view. It also examines some of the technical difficulties and considerations that analysts have to make when undertaking a trading comps analysis.


On completion of this course, you will be able to:
- Identify the purpose of corporate valuation and calculate the key valuation metrics
- Distinguish between absolute and relative valuation methodologies
- Identify the key steps required when conducting a trading comparables analysis
- Outline the mechanics of a trading comparables analysis, including determining the comparables universe, inputting the financials from the comparable companies into a trading comps model, and deriving a valuation range


Module 1: Corporate Valuation - An Introduction
Topic 1: Corporate Valuation Overview
Topic 2: Basics of Corporate Valuation
Topic 3: Valuation Metrics
Topic 4: Relative Valuations
Topic 5: Absolute Valuations

Module 2: Corporate Valuation - Trading Comparables
Topic 1: Trading Comparables
Topic 2: Basics of Trading Comparables
Topic 3: Identifying the Comparables Universe
Topic 4: Inputting the Financials
Topic 5: Deriving a Valuation Range


Relevant Subject
Type 1 - Dealing in securities
Type 4 - Advising on securities
Type 6 - Advising on corporate finance
SFC:2.00, PWMA:2.00
Chinese Securities Association of Hong Kong (HKCSA): HK$670
Non-Member: HK$960
All Member: HK$640
Staff of Corporate Member: HK$640