Investment and Portfolio Analysis

Corporate Valuation - Part 2 (2021)


This eCourse consists of two modules. Acquisition comparables analysis, or transaction comparables, is one of two methods that can be used to determine the relative value of a company (the other is trading comparables, which uses the position and performance of other companies to give an indication of the value of a target company). Module 1 describes how analysts decide on the precedent transactions to include in a transaction comps analysis, how they calculate the offer premium and deal price, and which metrics they analyze as part of the valuation.

Discounted cash flow (DCF) analysis is a valuation technique used by analysts to derive the intrinsic value of a company based on projected cash flows. Module 2 describes each of the key steps involved in a DCF analysis, demonstrating how analysts create a model that outputs an implied share price for a company by discounting its forecast future free cash flows.


On completion of this course, you will be able to:
- Identify the key steps required when performing a transaction comparables analysis
- Recognise the key questions that analysts must answer when determining precedent transactions
- Calculate and analyze deal premiums
- Derive a valuation range
- Identify the steps involved in a DCF valuation, and the advantages and disadvantages of the approach
- Calculate a firm’s unlevered free cash flows
- Recognise the two methods used to calculate the terminal value of a company
- Calculate the weighted average capital of cost (WACC) used to present value free cash flows
- Calculate an implied share price for a company as part of a DCF valuation


Module 1: Corporate Valuation - Transaction Comparables
Topic 1: Transaction Comparables
Topic 2: Determining a Deal List
Topic 3: Calculating Deal Premiums
Topic 4: Calculating & Analyzing Deal Values
Topic 5: Deriving a Valuation Range

Module 2: Corporate Valuation - DCF Analysis
Topic 1: Discounted Cash Flows (DCF)
Topic 2: Basics of DCF Valuation
Topic 3: Forecasting Unlevered Free Cash Flows
Topic 4: Calculating Terminal Value
Topic 5: Discounting the Cash Flows Using WACC
Topic 6: Calculating an Implied Share Price


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