Build a Relative Valuation Model

Learn how to do relative valuations on companies financial statements

Relative Valuation is a corporate value technique where the price earnings ratio and earnings per share of a company is compared with its sectoral companies and hence the company’s performance is evaluated. This training is dedicated to learning about this most commonly used valuation techniques wherein you shall understand relative valuation right from scratch. With the help of practical application and examples you shall understand the Earning Multiples such as PE ratio, Value/ EBIT , Value / EBIDTA, Ent value/ EBIDTA, Book Value Multiples, Revenue Multiples such as Price / Sales per share, Value/ Sales and industry Specific variables. All these valuation concepts have been taught w.r.t to the financial model of a company. By joining this training you would benefit by:

What you’ll learn

  • Learn how to do relative valuations on companies financial statements.
  • Learn various earnings multiples, book value multiples, revenue multiples and industry specific variables.
  • Learn Valuation techniques.

Course Content

  • Introduction –> 1 lecture • 3min.
  • Course Outline –> 2 lectures • 13min.
  • First and Second Valuation Equation –> 4 lectures • 37min.
  • Absolute Valuation –> 4 lectures • 38min.
  • Usage of Comps –> 4 lectures • 30min.
  • Selecting the Peers –> 2 lectures • 19min.
  • Enterprise Value multiples –> 4 lectures • 37min.
  • Gathering the Data –> 3 lectures • 33min.
  • Drawing the Comps –> 5 lectures • 42min.

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Requirements

  • Basic knowledge of Finance concepts.
  • Fundamental understanding of financial modeling.

Relative Valuation is a corporate value technique where the price earnings ratio and earnings per share of a company is compared with its sectoral companies and hence the company’s performance is evaluated. This training is dedicated to learning about this most commonly used valuation techniques wherein you shall understand relative valuation right from scratch. With the help of practical application and examples you shall understand the Earning Multiples such as PE ratio, Value/ EBIT , Value / EBIDTA, Ent value/ EBIDTA, Book Value Multiples, Revenue Multiples such as Price / Sales per share, Value/ Sales and industry Specific variables. All these valuation concepts have been taught w.r.t to the financial model of a company. By joining this training you would benefit by:

  • Learning how to do relative valuations on companies financial statements
  • Learning various earnings multiples, book value multiples, revenue multiples and industry specific variables
  • Valuation techniques

Valuation refers to the quantitative process used to determine the fair value of a company, asset or liability. This course on Valuation starts with introduction of valuation concept, its importance and where it is used. It then goes on to compares the various valuation approaches that are used in the market i.e. absolute valuation and relative valuation. This course is designed for beginners who are typically looking to understand the concept of valuation and get a working knowledge of how the concepts can be applied to a real working model. Simple examples and illustrations have been used to drive the concept. Students and financial modelers early in their career will find it useful to understand/refresh their knowledge of the topic

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