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.
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.
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 non-financial goals such as environmental, social, and governance (ESG) factors can be included in project valuation using an Adjusted Present Value (APV) approach.
Understand the trade-off 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.
State-of-the art methods for any company valuation situation.
In-depth discussion of Discounted Cash Flow (DCF-WACC) 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.
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.
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.
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 Price-Earnings (PE)-Ratio and the implicit assumptions we make when using it.
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.
Understand the relevance of Continuing Value (Terminal Value) in virtually any firm valuation.
Learn how growth, investments, and value creation are related in the long-run.
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.
Understand the many challenges we face when trying to value startups.
See how to adjust the DCF-approach 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.
Learn how to use financial decision making to improve firm value.
Understand how and why the firm's capital structure (debt-equity 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.
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.
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.
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.
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).