EQUITY VALUATION METHODS AND PRACTICE

WORKSHOP SERIES
NOVEMBER 2014
EVM/NOV/14/11.02
EQUITY VALUATION
METHODS AND PRACTICE
By WONG KAH TECK
INTRODUCTION
This workshop gives participants a solid understanding of the various equity valuation
tools used by investment analysts, investment bankers and fund managers. We will start
by studying widely used equity valuation techniques such as discounted cash flow and
relative valuation. Next, we will examine and apply more advanced equity valuation
techniques such as Adjusted Present Value and Real Options. This course will
extensively use equity research reports, case studies and classroom exercises to
facilitate effective learning among workshop participants.
Category:
Date:
Venue:
Corporate
Finance
6–7
November
2014
RAM
Training
Centre
SIDC CPE
ACCREDITED
10 CPE
POINTS
LEARNING OUTCOMES
COURSE TRAINER
At the end of this workshop, successful
participants will be able to achieve the
following outcomes:
Kah Teck has more than a decade of capital markets experience. He was
- describe the uses of equity valuation
techniques and their limitations
a portfolio strategist in CIMB Investment Bank and Am Investment Bank
where he was responsible for spearheading investment advisory and
product development initiatives strategies and also played an active role in
- explain and apply the various methods of
equity valuation
evaluating numerous plain vanilla and hybrid fund raising options. He has
- describe how investment bankers and
investment analysts use various equity
valuation techniques
capital market development policies.
- use the tools learnt to value the equities of
a private company, a start-up company
and a merger and acquisition target
estimate the cost of capital, while
accounting for differences in target capital
structures
also worked for the Securities Commission in research and formulating
Now the Managing Director and Principal Trainer for FMTCS Sdn Bhd,
Kah Teck passionately shares his knowledge and experience with
professionals in many of Malaysia’s leading financial institutions and
government-linked institutions.
- analyse the drivers of equity valuation
He graduated summa cum laude with a dual degree in finance and
TARGET PARTICIPANTS
 Investment Banking Professionals
 Investment Analysts
 Fund and Portfolio Managers
economics from the University of Pennsylvania’s Wharton School and
School of Arts and Sciences, and holds an MBA from the Booth School of
Business, University of Chicago. He is also a Chartered Financial Analyst
(CFA) charterholder.
 Management consultants
 Entrepreneurs, public-listed and private
company professionals
 Financial planners and wealth managers
 New entrants to the capital markets
His teaching and research interests are in corporate finance, securities
valuation, financial risk management, financial modelling and financial
analysis.
PRE – REQUISITES
- A basic knowledge of accounting
- Participants are also required to bring a
financial calculator or laptop
EQUITY VALUATION
METHODS AND PRACTICE
EQUITY VALUATION METHODS AND PRACTICE
DAY 1 - 2
DAY 1
Getting the Fundamentals Right
Session 1: The Big Picture




What is valuation?
Snapshot of equity valuation techniques
Why bother with equity valuation?
Who uses equity valuation?
Session 2: Discounted Cash Flow (DCF) Equity
Valuation Techniques
 The DCF valuation framework
 DCF valuation models:
 Dividend Discount Model
 The Free Cash Flow Model
 The capital asset pricing model (CAPM)
 The weighted average cost of capital (WACC)
 Adjusting the cost of capital for differences in capital
structure
 Case Studies/Exercises:
 How investment analysts and investment bankers
use DCF valuation techniques
 Implementing the Dividend Discount Model and
Free Cash Flow Model
Session 3: Relative Valuation Techniques
 The relative valuation framework
 Relative valuation models:
 Price to earnings
 Price to book
 Enterprise value to EBITDA
 Explaining differences in relative valuations across
equities and stock markets
 Case Studies/Exercises
 Using relative valuation techniques to select
equity markets
 Application of relative valuation techniques
Session 4: Equity Valuation Issues
 Linking DCF and Relative Valuation Techniques
 Equity valuation and efficient equity markets
 Deciding on the right valuation model to use – A
survey of valuation approaches used in the industry
DAY 2
Specialised Valuation Techniques
Session 1: The Adjusted Present Value (APV)
Technique
 Rationales for using the APV technique
 Underlying assumptions of the APV technique
 The APV vs. the WACC approach to equity valuation
 The APV valuation model
 Case Study/Exercise
Implementing the APV technique
Session 2: Private Company Equity Valuation
 Reasons for valuing equity in a private company
 Differences between equity valuation for a public listed
company vs. a private company
 Using DCF and Relative Valuation techniques to for
private company equity valuation
 Case Study/Exercise
Finding the value of equity in a private company
Session 3: Mergers and Acquisition Valuation
 Rationales for merger and acquisition valuation
approaches
 Mergers and acquisition valuation approaches – their
advantages and disadvantages
 Case Studies/Exercises
Valuing an M&A candidate
Session 4: Real Options
 A review of options and their payoffs
 Viewing equity as an option
 When to use the real options approach
 Details of the real options approach
 Summary and conclusion
 Case Study/Exercise
Implementing the real options framework
WORKSHOP SERIES
NOVEMBER 2014
SIDC CPE
ACCREDITED
EVM/NOV/14/11.02
WORKSHOP DETAILS
EQUITY VALUATION METHODS AND PRACTICE
10 CPE
POINTS
4 Quick & Easy Ways to Register
6 – 7 November 2014
9.00 am to 5.00 pm
Registration will commence at 8.30 am
Phone:
603 7628 1153 (Hanani)
603 7628 1151 (Sharimah)
603 7628 1152 (Sangeetha)
Email:
[email protected]
[email protected]
[email protected]
VENUE
RAM Training Centre, Level 5,
No. 19, The Boulevard , Mid Valley City
Fax:
603 7620 8250 (DID)
603 2711 1701 (GEN)
Mail:
Suite 20.01, Level 20
The Gardens South Tower
Mid Valley City
Lingkaran Syed Putra
59200 Kuala Lumpur
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(Fees include tuition, teaching materials, lunch &
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PAYMENT DETAILS
Please make crossed cheque /
bank draft payable to:
‘RAM Holdings Berhad’.
Please send to:
Suite 20.01, Level 20,
The Gardens South Tower, Mid
Valley City,
Lingkaran Syed Putra, 59200 Kuala
Lumpur, Malaysia.
Payment must be submitted
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guarantee your attendance.
The total registration fee
should be net of all taxes, bank
charges or any deductions of
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jurisdiction from which such
payment is made.
ADMINISTRATIVE INFORMATION
Group Registration
For 3 or more registrations from
the same organisation, a 10%
discount applies.
Cancellation & Transfer
Policy
Should a delegate be unable to
attend, a substitute may attend in
his/her place at no extra charge.
Written cancellation received
- One (1) week before the event, a refund (less an administrative charge of
50%) will be made.
- For no-show on the day of the series, no refund will be entertained.
- Cancelled unpaid registrations will also be liable for penalty payments.
Disclaimer
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speaker, date or venue or cancel any part of its published programme due to
unforeseen circumstances. We reserve the right to refuse registration.
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