Table of Content
 

 

Why Value Value

  • Value Creation Intro
  • Value Creation Pillars

Dividend Discount Model

  • Choosing between various valuation Methods
  • Introduction to Dividend Discount Model
  • Multi-period DDM
  • Gordon Growth Model
  • Valuation using Gordon Growth Model
  • Strengths & Weakness of DDM
  • Multi Stage DDM & Forecasting Dividends
  • Two Stage Dividend Discounted Model
  • Valuation using a spread sheet a Two stage Model
  • Valuation using a spread sheet a Three stage Model
  • Summary

Growth and Terminal Value

  • Sustainable growth Rate
  • Calculating Sustainable Growth Rate
  • Understanding the Terminal Value
  • Calculating the Terminal Value

Free Cash flow Introduction

  • Introducing Free Cash flow Model
  • Steps involved in a Free Cash Flow model valuation
  • Choosing between FCFF and DDM Model
  • Summary

Historical Analysis (ROIC)

  • Introduction to DCF
  • Historical Analysis
  • Return on Invested Capital
  • Diageo Annual Report
  • Income statement
  • Balance sheet
  • Operating Lease adjustments
  • Operating Lease
  • Pension and Post Retirement adjustments
  • Pension and Post Retirement
  • Notes to Financial Statements
  • Income Statement Adjusted Financials
  • Balance Sheet Adjusted Financials
  • Taxes Adjusted Financials
  • NOPLAT
  • Summary
  • Operating Leases Adjusted Financials
  • Pension Adjusted Financials
  • ROIC Tree

Forecasts

  • Guiding Rules for Forecasting
  • Forecasting Income Statement, CAPEX, Depreciation
  • Forecasting Income statement of Diageo
  • Forecasting Balance sheet of Diageo
  • Forecasting other balance sheet items
  • Forecasting different line items of Income statement and Balance Sheet
  • Calculating NOPLAT and Invested Capital

Weighted Average Cost of Capital

  • Cost of Capital
  • Estimating Cost of Debt
  • Methods of estimating cost of equity
  • Risk free rate
  • Beta calculation
  • Target cost of Capital
  • Inputs for Cost of Capital Estimation
  • Capital Structure
  • Asset Beta
  • Company Analysis
  • Summary for WACC calculation
  • WACC Recap
  • WACC Data Sourcing
  • Diageo WACC calculation
  • Fetching Data for WACC
  • Target Capital Structure
  • WACC- Summary

Discounted Cash flow

  • Recap- DCF
  • Value of Equity using DCF

Mistakes

  • Mistakes- Base Year Fixation
  • Mistakes- Taxation
  • Mistakes- High Growth Period & Cost of Capital

Relative Valuation

  • Introduction to Relative Valuation
  • Choosing Comparable
  • Relative valuation - forward looking
  • Enterprise value Multiples
  • Price/Earnings Ratio
  • Price/Book, Price /Sales Ratio
  • Example
  • Relative Valuation-PEG
  • Relative Valuation-EV

Emerging Market

  • EM Risks
  • EM-Approach
  • EM-WACC
  • EM Step-I
  • EM Step-II
  • EM Step-III
  • EM Step-IV
  • EM Step-V
  • EM Step Recap

Private Company

  • Private Company – Intro
  • Private Company-Income Method
  • Private Company Income Method E.g.
  • Private Company Income Method Others
  • Private Company-Market Method
  • Private Company-Asset Based Method
  • Private Company-Recap

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