2. Know your instructor
Ankur is a Finance domain expert and has over twelve years of experience in
valuations, M&A, research and portfolio management. He currently manages over
$100 million assets and classifies himself as active portfolio manager and his area
of expertise includes equity, F&O, fixed income and portfolio management.
Ankur has worked with global companies such as American Express Financial
Advisors, McKinsey and Ernst & Young. He is an alumnus of Hindu College and
Delhi School of Economics. He is also a CFA from CFA Institute, USA and CFP from
FPSB India.
Ankur has trained 500+ students in Financial Modeling globally.
Ankur Kapur â CFA, CFP
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3. What will you learn today?
ïŒ Why Financial Modeling ?
ïŒ Course Objective
ïŒ Course Benefits
ïŒ Who should take this course ?
ïŒ Case: Beta calculation
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5. Course Introduction
Advanced Valuation and Financial Modeling Course is an online live training program that can enable you to build a
comprehensive understanding of valuation and also become an expert in excel modeling
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By attending this program, you will:
ï Deepen your understanding of the valuation concepts you apply daily
ï Re-focus / re-learn the financial theory behind estimating value
ï Further understand and enhance your knowledge of valuation theory and
potential application
ï Question common practices and identify common mistakes and
misunderstandings
Who should attend?
ï Commerce graduate
ï MBA students
ï Financial and Business analysts
ï Financial controllers, managers
and modelers
ï Chief Financial Officers
ï Risk Managers
ï Chartered Accountants
ï Corporate treasury managers
ï Middle Office Staff
ï General Managers
ï Fund Managers
ï PE Fund Managers
6. Course Content
ï Advanced Excel Features and Techniques
ï Financial Statement & Analysis
ï Cost of Capital
ï Stock Valuation Models
ï DCF Modeling
ï Special Situation - Private Company Valuation
ï Mergers & Acquisitions
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8. Estimating the cost of equity â beta overview
What is Beta? ï§ A measure of how much a companyâs stock moves with the market
ï§ Beta is a result of comparison to a âmarketâ return. Make sure you
understand which market comparison it is based upon (e.g. local vs. global)
Why is Beta
important?
ï§ Beta is a measure of investment risk that helps us to estimate the returns
required for an equity investment
ï§ It helps us to define the non-diversifiable âriskâ of a security
How to
calculate Beta
ï§ Beta is estimated by regressing a companyâs stock returns against an index
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9. Estimating the cost of equity â beta calculation
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ï Raw regressions should use at least 60 data points (e.g., five years of monthly returns). Rolling betas should
be graphed to examine any systematic changes in a stockâs risk.
ï Raw regressions should be based on monthly returns. Using shorter return periods, such as daily and weekly
returns, leads to systematic biases.
ï Company stock returns should be regressed against a value weighted, well-diversified portfolio, such as the
S&P 500 or MSI World Index.
10. Use industry/peer results to refine beta estimate
To estimate beta based on comparable companies, calculate unlevered betas to develop industry beta estimate
and then re-lever with target capital structure
ïźStep 1
» Select a comparable benchmark
ïźStep 2
» Estimate the benchmarkâs Beta
ïźStep 3
» Uniliver the Benchmarkâs Beta
ïźStep 4
» Lever the Beta to reflect the subjectâ companyâs financial leverage
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11. Course Details
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Edureka's Financial Modeling with Advanced Valuation Techniques course:
âą Online Live Courses: 21 hours
âą Assignments: 15 hours
âą Project: 15 hours
âą Lifetime Access + 24 X 7 Support
Go to www.edureka.co/financial-modeling
Batch starts from 14 November (Weekend Batch)
Time: 7:00AM to 10:00AM