• Post category:StudyBullet-16
  • Reading time:10 mins read


Learn comparable comps methodology and its importance in the world of Investment Banking Industry

What you will learn

Important adjustments in Comparable Company Analysis

How to identify comparable companies

How to read comparable company analysis table

How to prepare a professional comparable company analysis table

Description

The training will include the followings:

  • What is Comparable Company Analysis?
  • How to read comparable company analysis table?
  • Box IPO Comparable Comp Analysis
  • How to identify comparable companies?
  • How to prepare a professional comparable company analysis table
  • Important adjustments in Comparable Company Analysis

This practical course on Comparable comps will help you focus particularly on this valuation methodology and help you learn the followings:

• Will help the students in first getting a general picture and understand where comparable comps places itself in the bigger picture of valuation

• Will delve deeper into the comparable comps methodology and why is it useful, particularly in the world of Investment Banking

• Identify the steps needed to perform the analysis with a brief description of each


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• Will use an actual comps excel template used in the Investment banking world and explain each steps in detail enough for students to start building models on their own

• Will provide a brief description on takeover premiums and how is it determined

• Will provide a new perspective to the students to think of sector specific multiples outside the realm of PE and EBITDA multiples. This will be particularly helpful for them as it will broaden their thinking patterns

• Will compel students to think based on what they have learnt and help them clear interviews.

The course will help the students in first getting a general picture and understand where comparable comps places itself in the bigger picture of valuation. We will delve deeper into the comparable comps methodology and why is it useful, particularly in the world of Investment Banking. Also we would identify the steps needed to perform the analysis with a brief description of each. This training is dedicated to learning about the most commonly used comparable company valuation techniques and its application across industries.

English
language

Content

Introduction

Introduction to Company Comparable

Components

Enterprise Value and Components
Computation of Enterprise Value
Total Long Term Debt
Calculating Net Debt
Calculating Equity Shares
Stock Based Compensation
Current Share Price
Pension Lease Obligations
Cash and Cash Equivalent
Calculating Net Debt Continues
Calculating Basic Shares
Company Comparable Components
Currrency Converter
Calculating Financial Assets
Basic Share Outstanding
Revenue from Operations
Basic Shares Price

Underlying Numbers

Trading Comparable Outline
Calculating Total Assets
Non Controlling Interest
Checking the Adjusted Numbers
Consolidated Net Income
Adjusted EPS
Consolidated Income Statement
Adjusted Operating Profit
Cashflow from Investing
Example on Underline Numbers
Calculating with Underline Numbers
Cashflow from Operating Activities
Operating Cashflow Margins
Examples from Tower Sector
Statutory Tax Rate
Analyzing the EBTDA Margin
Examples from Tower Sector Continues
Changes in Work Capital

Multiples and Multiples (LTM)

Key Measures of Profitability
LTM Calculations
Numbers for EBITDA
EBITDA and Net Income
Changing the Work Capital
Example on Investor Relations
Companies Growth Rate
Calculating Growth Rate
Calculating the Revenue
Example on LTM
Example on LTM Continues

Calendarization

Concept of Calenderization
Performing the Year End Calculation
Examples on Calenderization

Currency Management

Understanding Currency Management
Example of Currency Management
Comparing with the Estimates Methodology
Examples on Estimates
Calculating with Companies Guidance

Revenue in Regional results

Industry growth and margins
Evaluating revenue in regional results
Example of Idea cellular
Comparing the segment numbers
Converting units for all companies
Revenue in EBITDA margin

Market share of the industry

Industry growth and margins approach
Finding the market share of the industry
Key step in industry growth and margin
Key step in industry growth and margin continues
More steps in industry growth

Vodafone share price

Example in Enterprise value
Finding the Vodafone share price
Finding the Vodafone share price continues

Template Creation and Vodafone

Group Revenue
Historical Financial
Segmental Assets and Cash Flow
Vodafone-LTM Calculation
Calendarised Multiple
Cal Factor
Estimate
Estimate Continue
More on Estimate
Our Financial Performance
Earning Per Share
Vodaphone-2014 Annual Report

Compsheet Building – Telstra

Example of Telstra
Telstra Share Outstanding
Basic Share DS
Telstra-Total Income
Telstra December Report

Compsheet Building – Verizon

Example of Verizon
Verizon Input Sheet
Verizon-LTM Calculation

Compsheet Building – Airtel

Example of Bharti Airtel
Performance At A Glance
Smart Network and Smater Experiences

Compsheet Building – Dos and Donts

Step to Buolding a Comp
Comps Dos and Donts

Compsheet Building – Output

Growth Metrics
Margin Metrix
EV-EBITDA
Sharing in to EPS
Use Market Cap
Understand the Multiple Slider Example
Comps Output Sheet