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Corporate Finance Institute

Comparable Valuation Analysis

via Corporate Finance Institute

Overview

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Comparable Valuation Analysis Course Overview

Understanding valuation is one of the most fundamental and crucial skills to master as a finance professional. This course focuses on comparable valuation analysis, one of the most widely used valuation techniques. During this course, we cover how to screen for publicly traded comparable companies and precedent transactions. We will also discuss different types of multiples and nuances when entering actual, real-world company data. After completing this course, you will understand how to value a company using multiples, and the advantages and disadvantages of comparable company analysis.

Comparable Valuation Analysis Learning Objectives

Upon completing this course, you will be able to:

  • Understand relative valuation versus other valuation methodologies.
  • Recognize the advantages and disadvantages of relative valuation.
  • Determine how to pick comparable companies and precedent transactions.
  • Match enterprise value and equity value with appropriate metrics.
  • Identify debt and debt equivalents as well as cash and other non-operating assets.
  • Find and enter the applicable data using real-world examples

Recommended Prep Courses

These preparatory courses are optional, but we recommend you complete the stated prep course(s) or possess the equivalent knowledge prior to enrolling in this course:

 Introduction to Business Valuation  DCF Valuation Modeling

Who Should Take This Course?

This course is most suitable for anyone working in valuation, including investment banking, equity research, private equity, and corporate development.

Syllabus

  • Introduction to Comparable Valuation Analysis
  • Screening for Comps
  • Enterprise Value vs. Equity Value
  • Enterprise Value: Debt and Debt Equivalents
  • Enterprise Value: Cash and Non-operating Assets
  • Income Statement and Last Twelve Months (LTM)
  • Normalization and Analyst Estimates
  • Fully Diluted Shares Outstanding
  • Trading Comps Summary
  • Precedent Transaction Nuances
  • Qualified Assessment

Taught by

Jeff Schmidt

Reviews

4.8 rating at Corporate Finance Institute based on 87 ratings

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