Business Valuation Masterclass

Date: 24-25 October 2023

Program Objective 

This program teaches the fundamentals of valuing public and private companies through a case study approach. It covers the different methodologies and focuses on the Discounted Cash Flow (DCF) method as participants build a DCF analysis for an actual business, using each component of the DCF model: projected free cash flows, Weighted Average Cost of Capital (WACC) and terminal value. The program concludes with an introduction to sensitivity and scenario analysis, which is used to improve the base case valuation.

What will you learn?

This program is made up of the following sessions:

  1. Introduction to Business Valuation
  2. Strategic analysis
  3. Methods of valuation
  4. Asset-based and multiples-based valuations
  5. The Foundations of Free Cash Flows
  6. The Weighted Average Cost of Capital
  7. Terminal Value
  8. The DCF Approach to Business Valuation
  9. The Limitations of the DCF Approach

Your facilitators

  1. Robert Katuntu, CFA, CPA
  2. Albert Otete, PhD, CPA

Who Should Attend?

Business professionals including accountants, bankers, corporate financiers, lawyers and regulators.

Venue and costs

At Golf Course Hotel, Kampala
Fee: Shs885,000 inclusive of VAT

Detailed curriculum

Session 1 – Introduction to Business Valuation
  1. Why determine a business valuation
  2. The role of public markets in business valuation
  3. Common valuation methodologies
  4. Why the discounted cash flows DCF) is the best approach
  5. Introducing MTN, Airtel, Stanbic our case study
Session 2 – The Foundations of Free Cash Flows
  1. Cash flows vs. free cash flows
  2. Determining free cash flows
  3. Reconciling free cash flows with the statement of cash flows
  4. Value drivers
  5. Projecting MTN’s cash flows for the period based on value drivers.
Session 3 – The Weighted Average Cost of Capital (WACC)
  1. Introducing the WACC equation
  2. Calculating the after-tax expected cost of debt
  3. Using CAPM to calculate the expected cost of equity
  4. The effect of leverage on WACC
  5. Calculating WACC for MTN.
Session 4 – Terminal Value
  1. Defining terminal value and its impact on the DCF valuation
  2. Methods of determining the terminal value
  3. Determining the most appropriate terminal value for MTN.
Session 5 – The DCF Approach to Business Valuation
  1. Measuring shareholder value creation
  2. Discounting to find the value of operations
  3. Determining enterprise value
  4. Determining the total value of equity and per-share value of equity
  5. Valuing the MTN share using the DCF
Session 6 – Limitations of DCF Approach
  1. Sensitivity of DCF valuations to assumptions made
  2. Using sensitivity analysis to improve the base case valuation
  3. Scenario analysis and Monte Carlo simulation
Session 7 – The Conclusion Value
  1. Presenting the Business Valuation Report.

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