Exploring Business Valuation Fundamentals

Overview

What makes a business valuable? Who determines value? What are the key factors that make businesses valuable? In this course, we explore the different ways to value a business. We will apply foundational valuation and corporate finance concepts to real world examples in an effort to see what makes up an investment’s price.

Highlights

• What does value mean? • Technical vs. fundamental analysis • Intrinsic value • Other discounted cash flow models • Assumptions in the Gordon Growth Model • Valuations using free cash flows • Residual income model • Enterprise value • Value in mergers and acquisitions • Small business valuations and discounts • Advanced valuation models

Prerequisites

None

Designed For

Accounting and finance professionals who want to understand the concepts and theories behind business valuation techniques

Objectives

• Describe the factors affecting the value of a business • Compare and contrast market value, investment value, bankruptcy value, and going concern value • List the key differences between technical and fundamental analysis • Calculate intrinsic value using discounted cash flow methods, such as the GGM and the H-Model • Calculate intrinsic value using free cash flow • Calculate the gains and losses to the buyer/seller in a merger/acquisition • List key discounts when valuing privately held companies