Online Education

 
 

Foundations of Finance

time value of money.jpg
  • 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.

Time Value of Money

npv course picture.jpg
  • 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.

NPV and Other Investment Criteria

Cash Flow Pic.jpg
  • 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.

Project Cash Flows

risk return.jpg
  • 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.

Risk, REturn, Cost of Capital

Firm Valuation

Valuation-Arrow-1024x683.jpg
  • 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.

Fundamentals of Firm Valuation

Financial Analysis Picture.jpg
  • 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 Analysis for Managers

Financial Planning Picture.jpg
  • 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.

Financial Planning for Managers

pe picture.jpg
  • 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.

Valuation Multiples (Relative Valuation)

cost of capital pic.jpg
  • 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.

Cost of Capital and Valuation

continuing value pic.jpg
  • 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.

Continuing Value (Mature firm valuation)

startup-valuation-pic.jpg
  • 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.

Startup Valuation

 
Financial Analysis Picture.jpg
 

Financing Decisions and Deal Structuring

leverage pci.jpg
  • 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.

Capital Structure Decisions

VC Pic.jpg
  • 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.

Startup Financing and Deal Structuring

payout pic.jpg
  • 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.​

Payout Policy

MA-Digest_12_18.jpg
  • 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.

Mergers and Acquisitions (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).

Initial Public Offerings (IPOs)