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