Foundations of Finance
Time Value of Money

Know how to make cash flows comparable over time

Get familiar with the basics of compounding and discounting

Understand Present Values and Future Values

Be able to compute the present and future value of any cash flow or cash flow stream.

Know how to handle perpetuities and annuities.
NPV and Other Investment Criteria

Get to know and understand the Net Present Value (NPV).

Learn how to use the NPV rule in investment decisions.

Understand how and why managers who follow the NPV rule tend to increase the financial value of their firm.

Know how to compute and interpret the Internal Rate of Return (IRR) of projects.

Know what the Payback is and understand why investment decisions based on payback are often flawed.
Project Cash Flows

Know what the Net Cash Flow (NCF) is and we can estimate the NCF of any investment decision.

Learn how to incorporate interactions with other projects in the computation of the NCF.

Understand that only the cash flows matter that are caused by a specific capital budgeting decision.

Know how to treat inflation consistently in project valuation.

Understand how nonfinancial goals such as environmental, social, and governance (ESG) factors can be included in project valuation using an Adjusted Present Value (APV) approach.
Risk, REturn, Cost of Capital

Understand the tradeoff between risk and return.

Learn how we can reduce the risk of an asset via diversification.

Appreciate the basics of modern portfolio theory.

Get to know the Capital Asset Pricing Model (CAPM) to estimate expected returns.

See how to obtain the Weighted Average Cost of Capital (WACC), the most relevant discount rate in project and firm valuation.
Firm Valuation
Fundamentals of Firm Valuation

Stateofthe art methods for any company valuation situation.

Indepth discussion of Discounted Cash Flow (DCFWACC) and Relative Valuation (Multiples).

Know useful shortcuts to quickly assess the value of a firm.

Focus on practical implementation with countless case studies, spreadsheet templates, and online tools

Learn how to get from the Valuation to the actual Deal.
Financial Analysis for Managers

Learn how to read and analyze financial statements and how to tell the "financial story" of a company.

Conduct quick health checks using financial ratios.

Understand the strengths and limitations of financial ratios.

Know the main determinants of Return on Equity (ROE).

Build the foundations for key financial decisions.
Financial Planning for Managers

Determine a firm's cash flows from its balance sheets and income statement.

Get familiar with different types of cash flows, in particular operating, free (firm), and residual cash flow.

Learn how to forecast cash flows and compile a financial plan.

Use Monte Carlo Simulation to transform financial plans into powerful management tools.
Valuation Multiples (Relative Valuation)

Get to know valuation multiples, the practically most relevant valuation method.

Understand the key success factors of using relative valuation.

Use multiples for enterprise valuation and equity valuation.

Know key implementation challenges and their solutions.

Get to know the PriceEarnings (PE)Ratio and the implicit assumptions we make when using it.
Cost of Capital and Valuation

Learn what the cost of capital is and how it is affected by financial leverage.

Understand the various ways to capitalize free cash flows.

Learn how to estimate the Weighted Average Cost of Capital (WACC) in any valuation situation.

Learn how to estimate the cost of capital in an international context.

Understand the simple mistakes we often make when "unlevering" and "relevering" betas.
Continuing Value (Mature firm valuation)

Understand the relevance of Continuing Value (Terminal Value) in virtually any firm valuation.

Learn how growth, investments, and value creation are related in the longrun.

Use a simple model to estimate continuing value.

Learn how to use this simple model to value mature firms.

Know alternative ways to estimate continuing value.
Startup Valuation

Understand the many challenges we face when trying to value startups.

See how to adjust the DCFapproach in specific situations.

Learn how Venture Capitalists (VCs) value startups.

Understand the difference between valuations and issue prices.

Learn how to use real option considerations to value startups.
Financing Decisions and Deal Structuring
Capital Structure Decisions

Learn how to use financial decision making to improve firm value.

Understand how and why the firm's capital structure (debtequity mix) matters.

Learn how a firm can adjust its capital structure.

Understand the implication for debt and equity valuation.

Know the key considerations behind an optimal capital structure.
Startup Financing and Deal Structuring

Learn how to get from a valuation to the actual deal.

Know the key elements of financial deal making, namely returns, control, and liquidity.

Learn how to read or draft financing term sheets.

See how deal structuring makes deals possible and more valuable.

Learn how to use deal structuring as a "truth serum" and to align the incentives of the deal parties.
Payout Policy

Understand the key questions surrounding the payout decision: How much to pay out, and how to return money to shareholders?

Know the various forms of payout, in particular dividends and share buybacks.

Know how and why payout matters.

See how a firm's financing policy, investment policy, and payout policy are related.

Know the relevant steps towards a sustainable payout policy.
Mergers and Acquisitions (M&A)

Know the main forms of takeover and their relevance.

Understand the basic M&A process.

Know the key considerations to determine the offer price.

Use a simple model to understand the ownership and value implications of any deal structure.

Learn why it is difficult to create value with M&A.
Initial Public Offerings (IPOs)

Get to know the most prestigious way to raise capital: the Initial Public Offering (IPO).

Know the costs and benefits of going public.

Understand the IPO process.

Know how an IPO allocates value and ownership (who makes how much money).

Know the costs and benefits of alternative going public strategies, including direct listings, direct public offerings, or initial coin offerings (ICOs).