Valuation

Program Dates and Fees
	Dates	Location	Tuition*
Register for this Date	June 8 & 9, 2009	NYU Stern, 44 W. 4th St., NYC	$2,500
*Accommodation not included

Program Description

There are as many models for valuing stocks and businesses as there are analysts doing valuations. The differences between these models are often emphasized by their users, and the common elements are often ignored. The objective of this program is to provide the fundamentals of the different valuation approaches, an understanding of the limitations of each approach and examples of each of the applications. The program will address discounted cash flow valuation and the estimation issues that arise when information is imprecise or unavailable, value enhancement through the prism of discounted cash flow models, and contrast techniques. It will also delve into other valuation approaches, such as the use of multiples and comparables in relative valuation, and the use of option pricing to value certain types of stocks and businesses.

Who Should Attend

Equity research analysts who are interested in examining alternative valuation approaches
Corporate financial officers who want to understand the details of valuation for planned acquisitions or to gain value enhancement strategies for their firms
Analysts involved in mergers and acquisitions who seek to acquire a wider repertoire of valuation skills
Portfolio managers who are interested in the effects of corporate restructuring on firm value, and the implications for portfolio management

Program Benefits

During this program participants will:

Utilize discounted cash flow models to value any type of firm in any market
Value a firm using multiples and comparable firms
Analyze and critique the use of multiples in valuation
Develop the tools to value "problem" firms, such as financially troubled firms and start-up firms
Estimate the effect restructuring a firm has on value

PRMIA is a proud partner of this training course. As a participant in the CFA Institute Approved-Provider Program, PRMIA has determined that this program qualifies for 12 credit hours. If you are a CFA Institute member, CE credit for your participation in this program will be automatically recorded in your CE Diary upon the report of your CFA member number to training@prmia.org.

Program Schedule

DAY ONE*	DAY TWO*
SESSION 1 (9:30AM - 11:00AM): THE DISCOUNTED CASH FLOW MODEL SESSION 2 (11:30AM - 1:00PM): DISCOUNTED CASH FLOW VALUATION SESSION 3 (2:00PM - 3:30PM): DISCOUNTED CASH FLOW VALUATION (CONT.) SESSION 4 (4:00PM - 5:30PM): DISCOUNTED CASH FLOW VALUATION (CONT.)	SESSION 5 (9:00AM - 10:30AM ): LOOSE ENDS IN VALUATION SESSION 6 (11:00AM - 12:30PM): THE ALLURE OF RELATIVE VALUATION SESSION 7 (1:30PM - 3:00PM): THE ALLURE OF RELATIVE VALUATION (CONT.) SESSION 8 (3:30PM - 5:00PM): THE REAL OPTIONS STORY
*Full business day

DAY 1

Session 1
The Discounted Cash Flow Model

Setting up the model

Session 2
Discounted Cash Flow Valuation

The big picture of Discounted Cash Flow (DCF) Valuation

Valuation examples

The discount rate

Session 3
Discounted Cash Flow Valuation (cont.)

Risk premiums and Betas

The cost of debt

Estimating cash flows

Session 4
Discounted Cash Flow Valuation (cont.)

Estimating growth rates

Estimating growth patterns

The terminal value

Closing thoughts on DCF valuation

Networking Reception & Practitioner’s Point of View

DAY 2

Session 5
Loose Ends in Valuation

Cash, cross holdings and other assets

The value of control, synergy and transparency

The liquidity discount

Employee stock options

Session 6
The Allure of Relative Valuation

Categorizing multiples

The four steps in analyzing multiples

Session 7
The Allure of Relative Valuation (cont.)

Applying multiples in valuation

Finding comparable firms

Controlling for differences

Picking the right multiple

Session 8
The Real Options Story

The option to delay (and valuing patents and natural resource companies)

The option to abandon

The option to expand

Equity in troubled firms as options

Faculty Bios

Aswath Damodaran is professor of finance at NYU Stern School of Business. Professor Damodaran's contributions to the field of finance have been recognized many times over. He has been the recipient of Giblin, Glucksman, and Heyman Fellowships, a David Margolis Teaching Excellence Fellowship, and the Richard L. Rosenthal Award for Innovation in Investment Management and Corporate Finance.

In addition to myriad publications in academic journals, Professor Damodaran is the author of several highly-regarded and widely-used academic texts on Valuation, Corporate Finance, and Investment Management. Read his full bio