Exploring Business Valuation Fundamentals

Overview

What makes a business valuable? Who determines value? What are the key factors that make businesses valuable? In this course, we explore the different ways to value a business. We will apply foundational valuation and corporate finance concepts to real world examples in an effort to see what makes up an investment’s price.

Objectives

• Describe the factors affecting the value of a business
• Compare and contrast market value, investment value, bankruptcy value, and going concern value
• List the key differences between technical and fundamental analysis
• Calculate intrinsic value using discounted cash flow methods, such as the GGM and the H-Model
• Calculate intrinsic value using free cash flow
• Calculate the gains and losses to the buyer/seller in a merger/acquisition
• List key discounts when valuing privately held companies

Highlights

• What does value mean?
• Technical vs. fundamental analysis
• Intrinsic value
• Other discounted cash flow models
• Assumptions in the Gordon Growth Model
• Valuations using free cash flows
• Residual income model
• Enterprise value
• Value in mergers and acquisitions
• Small business valuations and discounts
• Advanced valuation models

Designed For

Accounting and finance professionals who want to understand the concepts and theories behind business valuation techniques

Prerequisites

None

Preparation

None

Notice

To access this program, log into your CTCPA account at https://www.ctcpas.org/my-cpe/upcoming and click on the orange "Launch Event" button.