Overview

This course focuses on foundational valuation methods used by investment bankers to assess companies and transactions. You'll learn essential techniques like comparable company analysis, precedent transactions, and discounted cash flow modeling. These skills are crucial for interpreting financial data and making informed valuation judgments in various deal contexts. You’ll explore how these valuation frameworks are applied in real-world scenarios. By using a finance-first approach, the course emphasizes step-by-step modeling logic, enabling you to connect theoretical concepts with practical applications used by professionals in the field. What makes this course different is its practical orientation, combining essential valuation techniques with hands-on modeling experience. You will gain the tools and knowledge required to perform accurate valuations, ensuring you're equipped for real-life investment banking roles. This course is ideal for individuals pursuing a career in investment banking or finance. It's suitable for beginners to intermediate learners with basic financial knowledge. This course is part one of a three-course Specialization designed to provide a comprehensive learning pathway in this subject area. While it delivers standalone value and practical skills, learners seeking a more integrated and in-depth progression may benefit from completing the full Specialization. Copyright © 2022 by Joshua Rosenbaum and Joshua Pearl. All rights reserved. Used by arrangement with John Wiley & Sons, Inc.

Syllabus

Comparable Companies Analysis

This module guides learners through the process of conducting a comparable companies analysis, including selecting appropriate peer companies, gathering and analyzing financial data, and calculating key valuation multiples. Learners will gain practical skills in benchmarking and interpreting valuation ranges using real-world financial statements and industry standards.

Precedent Transactions Analysis

This module guides learners through the process of conducting precedent transactions analysis to estimate company valuations. You will learn how to select comparable acquisitions, gather and interpret deal data, and benchmark transactions to derive accurate valuation multiples. Practical examples and step-by-step instructions will help you apply these techniques to real-world scenarios.

Discounted Cash Flow Analysis

This module guides learners through the process of valuing a business using discounted cash flow analysis. You will explore how to project free cash flows, calculate the weighted average cost of capital, determine terminal value, and perform sensitivity analysis to assess valuation outcomes. By the end, you'll understand the key steps and considerations involved in building a robust DCF model.