Valuation Technique Certification
About Valuation Technique
Valuation technique refers to the methods and processes used to determine the value of an asset, such as a company, property, or financial instrument. There are several different valuation techniques that can be used, depending on the type of asset and the purpose of the valuation.
Some common valuation techniques include:
Comparable company analysis: comparing the financial metrics of a company to those of similar companies in the same industry.
Comparable transaction analysis: comparing the price and terms of similar transactions to determine the value of an asset.
Discounted cash flow (DCF) analysis: forecasting the future cash flows of an asset and discounting them back to their present value.
Asset-based analysis: valuing an asset based on the value of its individual components, such as the real estate, equipment, and inventory.
Option pricing models: valuing an asset based on the options it provides to its owners or users.
Valuation techniques can be classified as either relative or intrinsic.
Relative valuation techniques are based on the comparison of the subject company or asset to a similar company or asset.
Intrinsic valuation techniques are based on the underlying characteristics of the company or asset, such as its cash flow, earnings or dividends.
The choice of the appropriate valuation technique depends on the purpose of the valuation, the information available, and the characteristics of the asset being valued. Valuation techniques are also subject to assumptions and estimates, which can affect the final value obtained. Therefore, it is important to consider the reliability and accuracy of the inputs and assumptions used in the valuation technique.
Who should take the Valuation Technique Certification exam?
Valuation Technique course is suitable for:
Financial analysts and advisors.
Investment bankers and private equity professionals.
Corporate finance professionals.
Business students who want to gain knowledge of valuation techniques.
Anyone interested in understanding various methods of valuing assets, businesses and securities.
Valuation Technique Certification Course Outline
Introduction to Valuation Techniques
Financial Statements Analysis
Time value of money and discounted cash flow (DCF) analysis
Capitalization of Earnings and Dividend Discount Models
Comparable company analysis and precedent transactions
Real options analysis
Business and industry analysis
Economic and market analysis
Risk and return analysis
Cost of capital and weighted average cost of capital (WACC)
Valuation of bonds and fixed-income securities
Valuation of stocks and equity securities
Valuation of real estate and property
Valuation of intellectual property and intangible assets
Valuation of derivatives and complex financial instruments
Valuation of private companies and startups
Valuation in mergers and acquisitions
Valuation in financial reporting and tax compliance
Valuation in bankruptcy and restructuring
Valuation in litigation and dispute resolution
International Financial Reporting Standards (IFRS) and Generally Accepted Accounting Principles (GAAP) in valuation
Ethics and professional standards in valuation
Industry-specific valuation techniques (e.g. oil and gas, pharmaceuticals, technology)
Advanced modeling and software tools for valuation (e.g. Excel, Bloomberg, FactSet)