Core Valuation Techniques in Investment Banking

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Core Valuation Techniques in Investment Banking

Instructor: Wiley Skills Network

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3 modules

Gain insight into a topic and learn the fundamentals.

Intermediate level

Recommended experience

5 hours to complete

Flexible schedule

Learn at your own pace

3 modules

Gain insight into a topic and learn the fundamentals.

Intermediate level

Recommended experience

5 hours to complete

Flexible schedule

Learn at your own pace

What you'll learn

Learn how to perform Comparable Company Analysis to assess company value.
Understand Precedent Transactions and how to apply them in valuation.
Master Discounted Cash Flow (DCF) modeling techniques to estimate company value.

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There are 3 modules in this course

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.

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.

What's included

1 video12 readings1 assignment

1 videoTotal 1 minute

Overview1 minute

12 readingsTotal 95 minutes

Introduction7 minutes
STEP I. SELECT THE UNIVERSE OF COMPARABLE COMPANIES10 minutes
Screen for Comparable Companies4 minutes
SEC Filings: 10-K, 10-Q, 8-K, and Proxy Statement6 minutes
STEP III. SPREAD KEY STATISTICS, RATIOS, AND TRADING MULTIPLES18 minutes
Supplemental Financial Concepts and Calculations7 minutes
Calculation of Key Trading Multiples5 minutes
STEP IV. BENCHMARK THE COMPARABLE COMPANIES5 minutes
Valuation Implied by P/E5 minutes
Step II. Locate the Necessary Financial Information13 minutes
Step IV. Benchmark the Comparable Companies3 minutes
Notes12 minutes

1 assignmentTotal 16 minutes

Comparable Companies Analysis Fundamentals16 minutes

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.

What's included

1 video8 readings1 assignment

1 videoTotal 1 minute

Overview1 minute

8 readingsTotal 55 minutes

Introduction7 minutes
STEP I. SELECT THE UNIVERSE OF COMPARABLE ACQUISITIONS7 minutes
STEP II. LOCATE THE NECESSARY DEAL-RELATED AND FINANCIAL INFORMATION6 minutes
Private Targets15 minutes
STEP IV. BENCHMARK THE COMPARABLE ACQUISITIONS4 minutes
ILLUSTRATIVE PRECEDENT TRANSACTION ANALYSIS FOR VALUECO5 minutes
Step III. Spread Key Statistics, Ratios, and Transaction Multiples5 minutes
Step IV. Benchmark the Comparable Acquisitions6 minutes

1 assignmentTotal 16 minutes

Precedent Transactions Analysis Fundamentals16 minutes

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.

What's included

1 video13 readings1 assignment

1 videoTotal 1 minute

Overview1 minute

13 readingsTotal 78 minutes

Introduction8 minutes
STEP I. STUDY THE TARGET AND DETERMINE KEY PERFORMANCE DRIVERS: Study the Target4 minutes
Considerations for Projecting Free Cash Flow8 minutes
Projection of Free Cash Flow12 minutes
STEP III. CALCULATE WEIGHTED AVERAGE COST OF CAPITAL6 minutes
Step III(c): Estimate Cost of Equity (re)7 minutes
STEP IV. DETERMINE TERMINAL VALUE4 minutes
STEP V. CALCULATE PRESENT VALUE AND DETERMINE VALUATION: Calculate Present Value4 minutes
Perform Sensitivity Analysis5 minutes
Projection of Sales, EBITDA, and EBIT5 minutes
Step III. Calculate Weighted Average Cost of Capital5 minutes
Step V. Calculate Present Value and Determine Valuation: Calculate Present Value3 minutes
Notes7 minutes

1 assignmentTotal 16 minutes

DCF Analysis Fundamentals16 minutes

Instructor

Wiley Skills Network

John Wiley & Sons

112 Courses6,750 learners

Offered by

John Wiley & Sons

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Frequently asked questions

To access the course materials, assignments and to earn a Certificate, you will need to purchase the Certificate experience when you enroll in a course. You can try a Free Trial instead, or apply for Financial Aid. The course may offer 'Full Course, No Certificate' instead. This option lets you see all course materials, submit required assessments, and get a final grade. This also means that you will not be able to purchase a Certificate experience.

When you enroll in the course, you get access to all of the courses in the Specialization, and you earn a certificate when you complete the work. Your electronic Certificate will be added to your Accomplishments page - from there, you can print your Certificate or add it to your LinkedIn profile.

Yes. In select learning programs, you can apply for financial aid or a scholarship if you can’t afford the enrollment fee. If fin aid or scholarship is available for your learning program selection, you’ll find a link to apply on the description page.