About Media Company Equity Valuation Training
Knowing what a company is worth and what determines is value, is a prerequisite towards intelligent decision making. It’s the process to determine the economic worth of a company under some specific assumptions and conditions, and subject to the available data on the date of valuation. It’s important to mention that business valuation is not a science and depends on several factors like purpose of valuation, stage of the business, projected financial results, past financial performance, market recognition, industry scenario etc.
What is company valuation?
Company valuation is a process for estimating the economic worth of a stakeholder’s interest in a business. Before starting the valuation, the circumstances surrounding and the reasons for valuation has to be ascertained. These are formally known as “premise of value”, and “standard of value”. While the former relates to assumptions on which valuation is based, the latter represents the hypothetical conditions on which the company will be valued.
There are several instances when you may have to determine the market value of a company. Selling and buying a business, of course, is one of the most common reasons. Estate planning, reorganisation, and verification of a company’s worth to its investors and lenders are the other common reasons.
Valuing a business is not mathematics that will lead to a calculated result. Valuations may vary on the type of business and the reasons behind valuating it in the first place. There are many factors involved in the process, from the book value of the company to a wide range of tangible and intangible elements. Generally speaking, the value of a company will have to rely on its cash flow analysis. In other words, a company’s ability to generate regular profits would ultimately determine its actual worth in the marketplace.
Business valuation is the first point where sellers and buyers meet. The two sides rarely arrive at a common number. The seller would obviously look for a higher price to sell the business. The buyer, on its part, would want a lesser valuation. The goal of the media company evaluator would be to arrive at a number from which the seller and buyer can further negotiate the price. Veteran business appraiser Bryan Goetz said that businesses are as complex and unique like the people who run them and a company can’t be valued by a simple thumb rule.
Here are some of the key facts of company evaluation.
- Price and value are not the same: The value of a company, regardless the method used to calculate it, is not same as selling price. Legendary investor Warren Buffet had once famously said: “Price is what you pay, value is what you get.” They can never be the same.
- Valuation varies: Valuation of a company changes with purpose, time and person. “Value” is a subjective term that usually has different connotations with different things and different people. The results are likely to be different according to the time of valuation.
- Transaction happens at a negotiated price: The value of a company can be determined by the valuation approach. The value, however, could be still subjective. It could depend on the price expectations of both the seller and the buyer and negotiation can only happen at a mutually agreed price.
Equity Valuation Course description
The media company valuation course description is as follows.
Fundamentals of the popular electronic spreadsheet are introduced in this section. These include ribbons and the quick access toolbar, surfing the Excel “Help” function, case studies, data entry, populating the case study, calculations i.e. addition, subtraction, multiplication, and division, formulas like sum, max, min, and average, formatting the number and table formats, updating calculations, percentage and absolute references, “If” function, conditional formatting, Countif and Sumif functions, creating graphs and charts, creating pie charts, filters, sorts, pivot tables, presentation table formats, freeze and split, formatting charts and presentation indents, printing worksheets, printing headers and titles, shortcuts to formatting and navigation, shortcuts to selection data and formula, and common errors.
This section is divided into 61 parts. Here you learn about the office button and paste function, screenshots and sparklines custom ribbons, equation editor and conditional formatting, paste special, logical functions i.e. if and or, arithmetic functions like max, min, abs, and others, Count, countif, countblank, and counta, cell information like isblank, iserror and others, the CHOOSE, HLOOKUP and VLOOKUP functions, MATCH INDEX, database functions like DAVERAGE, DSUM, and DCOUNT, one dimensional and two dimensional data tables, FORECAST function, OFFSET functions, solver and goal seek, introduction to array function and its rows and columns, TRANSPOSE, and FREQUENCY, major array functions like UPPER, LOWER, LEFT, MID, RIGHT, and PROPER, CLEAN, FIND, CONTAENATE, and RPT, pivot tables, filter slicer and charts, naming cells, ranges, and dynamic ranges, watch window, auditing toolbar, group boxes and the options button, check boxes, list and combo boxes, scroll bars and spinner, grouping tabs, text to columns, SUBTOTAL function, data validation, hyperlinks, custom view, random numbers, protecting your worksheet and workbook, range charts type and area, two axis graphs, funding graphs, scenario graphs, bar to pie chart, average line, combo charts, inverting negatives, creating histograms, and scrolling charts.
In this section you learn about the dividend discount model (DDM) with examples, introduction to DCF and its equity valuations, forecasting the income statement EBITDA, understanding working capital, completing working capital calculations, linking free cash flow to the firm, discounting explicit period cash flows, calculating terminal values, DCF sensitivity analysis and valuation summary, options treasury stock method, calculation of “in the money” stock options and debt equity ratio, CAPM, cost of debt calculation, terminal value, enterprise value calculation: calculating the missing links, DCF using Reliance Industries as an example, introduction to relative valuation, enterprise and equity value, and comparable comp sheet, understanding the PE ratio and its advantages and limitations, forward and trailing PE, understanding the PE ratio and why it’s used in banks, understanding the PCF ratio and why it’s used in real estate, oil and gas, and gold, benchmarking analysis, Wockhardt equity valuation summary comparable company valuation (in two parts), football field Wockhardt case study, comparables for hospital companies, comparable company analysis in the pharmaceutical and cement sector, valuing property companies (in four parts), the comps sheet global benchmarking model, oil and gas sector comparable energy analysis, valuation methodologies (in four parts), Cairn India valuation methodology, calculation of discounted cash flows, WACC analysis PE companies, and football field.
Report writing technique:
You are introduced to report writing techniques and go on to learn equity research reports and their anatomy, comparing reports, dos and don’ts of report writing and relevant case studies, useful financial websites, the reports on the Indian media sector, peer analysis (in seven parts), and the research report on Reliance Petroleum.
What you’ll learn
At the end of the course, you will be able to learn the following.
- Segregate and apply the main types of company valuation.
- Evaluate the profit and loss account, balance sheet as well the cash flow statements of a business.
- Use comparative business evaluation and also calculate the multiples in practice.
- Understand the DCF model structure and how it’s used for valuing a business in practice.
- Learn fundamentals of future cash flow valuation.
- Calculate cost of capital and also understand the basics of discounted periods and rate.
- Build a bridge between equity and company valuation.
Equity Valuation Course Requirements
Business valuation involves opinions for gifting, estate planning and taxation, opinions on mergers and acquisitions, recapitalisation, divestitures, financial opinion regarding litigation, transfer pricing engagement to provide clients overseas operation inoculation against audit risk, financial options regarding retirement and exit strategy planning. Business valuation is a profession for those who love to take up challenges and resolve them. While accounting and taxation is focussed on reports of historical events, like the financial results of the just-concluded fiscal year, business valuation deals with how the financial information is used in the light of investment and finance decisions. It’s often said that stand-out elements of a true career satisfaction involves company owners enhancing the value of their business.
While many business, finance, accounting, and marketing college graduates and undergraduates are discovering the diverse and dynamic opportunities regarding a career in business valuation, others have entered the domain from relevant fields for serving the business valuation role as a trusted advisor. One of the biggest advantages of new professionals entering the profession is putting to use sophisticated decision making processes and making the valuation quicker. Else, it may have taken more time to complete.
The course is mainly aimed at those who are from a financial background and want to explore advanced subjects of financial modelling and company valuation. These include equity analysts, investment bankers, fund managers, merger and acquisition professionals, finance directors and treasurers, venture capitalists and private equity specialists, commercial bankers, business analysts, and other finance professionals.
FAQs: Some general questions
- How long does it take for an appraiser to complete a media company valuation?
The process from developing an appraisal format and preparing the final report may take several days to months, depending on the scope and size of the business. It may take more time if the business is spread over several locations. Availability of financial information, the client, the top management, and other reliable sources, could also be factors.
- What are the most common business valuation methods?
The selection of valuation methods depend upon the use of the valuation and scope of the assignment. Some of the common methods are market approach, asset-based approach, and income approach.
- How can I get started with business valuation?
Company valuation professionals come from several walks of life. There’s no single specific background. Fresh graduates too often join the profession after proper training. People with advanced degrees in finance, law and accounting, have also joined the profession. An internship in a business valuation firm after completion of the course would be helpful.
- How long is the valuation relevant?
The value of a business is always determined on a specific date. But the final value should always consider historical data of the company, as well as future projections of the company and the industry sector it belongs to. There could be modifications to the value, albeit minimal, with each passing day because of changes in the company’s capital structure. However, as a general practice, if there has been no major change in operations or the capital structure, annual updates are likely to satisfy the purpose in most cases.
“I am very committed to professionalism and was pleased to attend EduCba’s media company valuation training course. It was immensely enlightening for me. I was able to take a close look at comparative valuations of companies. The faculty was all industry experts and the courseware was superb.”
“The course was extremely useful and I was able to learn a lot within a short time. The course helped me to expand my knowledge. It was absolutely relevant to develop my understanding of business valuation. The trainers gave me a useful insight to how companies are valued in real life.”
“After by MBA, I wanted to specialize in media company valuation. One of my colleagues suggested EduCba. After going through their courseware I was convinced that this was the training I was looking for. I am now working for a management consultancy firm and heading its business evaluation department.”
The course will help in your career in the following ways.
- Identify fundamental steps for valuing a business, from the beginning to the end.
- Identify the proper valuation method for a particular company, within the approach, passed on specific purposes and the standard of value for a particular assignment.
- Determine the most appropriate financial analysis for the company because it relates to a particular valuation engagement.
- Identify the foundations of the company evaluation process along with the value drivers that supports the business’s value.
- Recognise the difference in standards of business valuation and the application nuances while valuing a company.
|Where do our learners come from?|
|Professionals from around the world have benefited from eduCBA’s Online Equity Valuation of Media Sector Courses. Some of the top places that our learners come from include New York, Dubai, San Francisco, Bay Area, New Jersey, Houston, Seattle, Toronto, London, Berlin, UAE, Chicago, UK, Hong Kong, Singapore, Australia, New Zealand, India, Bangalore, New Delhi, Mumbai, Pune, Kolkata, Hyderabad and Gurgaon among many.|