1. Course Summary
Now, let's review what we've covered in this course.
We had several objectives. By now, you understand the difference between
enterprise value and equity value, you understand a discounted cash flow
valuation, you've learned how to calculate free cash flows, WACC, and the
present value of a business. You understand how comparable company analysis
is performed and how to calculate and when to use appropriate multiples.
You also know how to perform a precedent transactions analysis.
You learn the pros and cons of each of these main valuation methodologies.
And finally, you've learned how to present and effectively communicate the
results of the valuation analysis in a football field chart that we built
together in Excel. All of these skills should have you well on your
way to becoming a world class financial professional.
In this course, we taught you how finance professionals undertake real valuations
of businesses. We cover best practices and methods for undertaking a world
class valuation assignment. Now, you should be able to build a robust and
detailed business valuation model, a model that includes both qualitative
and quantitative analysis. And more importantly, a model that clearly presents
and communicates key findings from your valuation. Business valuation is
both an art and a science. There are numerous factors that need to
be considered in any valuation assignment. This valuation is not simply
about analyzing financial statements, but assessing the business and industry
as a whole. We hope this has helped you enhance and improve your
business valuation skills. If you want more of a challenge, then we recommend
you take our DCF valuation modeling and comparable valuation analysis courses.
Goodluck.
2. Let's practice!