Valuation Analysis

The goal of this training is to establish a core understanding of valuation as applied to a revenue forecast.  Upon completion of the course, participants will have constructed two valuation models; one for a single point estimate forecast and another for a probabilistic (simulation) forecast, representing two alternative levels of complexity and sophistication.

  1. Framework of valuation analysis
    • The simple case: point estimate forecast
    • Probabilistic variants
  2. Constructing a profit & loss (P&L) statement
  3. Applying the time value of money to establish net present value (NPV)
    • Valuing free cash flow
    • Calculation of residual value
      • Models representing complete product lifecycle
      • Models representing a fraction of the product lifecycle
  4. Probabilistic valuation and implications for modeling
    • Probability of value creation vs. erosion
    • Discount rates with and without Monte Carlo simulation
  5. Analysis and reporting of valuation results

Modality: Didactic and experiential
Prerequisites: Fundamentals of Strategic Forecasting
Tuition:  $1,499