Discounted Cash Flow modelling is probably the most heavily used tool in Corporate Finance & Equity Research teams worldwide. While powerful, they are subject to that old axiom 'garbage in, garbage out'. Small changes in the inputs can result in large swings in the outputs – a prospective future value of a Company's Equity. Nevertheless, with heightened investor concerns about the quality of declared Corporate Earnings numbers & the reliability of over-used valuation metrics like the P/E ratio, more Investors are turning to Cash Flow numbers.
Learning Outcomes
Having attended this course, delegates will have insight into how DCF models are constructed & the pitfalls one encounters along the way.
Course Content
Rationale for & characteristics of DCF modelling. What is Free Cash Flow exactly?
Deriving the cost of equity
The Equity Risk Premium – the past as a guide for the future?
Deriving the cost of debt
Risk Free Rates – looking where exactly?
Calculating the weighted average cost of capital
Terminal value derivation methods
Bookings are made using the link below. Please email ci-pd@bpp.com with any queries.
