Self-Study
5
Intermediate
Finance
Ability to use advanced mathematical formulas.

Course Description

Business valuation is a present value concept that involves estimating future cash flows of a business and discounting them at a required rate of return. This course explains how the value of a bond is essentially the present value of all future interest and principal payments. You'll receive a thorough explanation of the Gordon valuation model, which demonstrates that stock price may be expressed as a function of the expected future dividends and a rate of return required by investors. Real estate valuation also involves several rule-of-thumb valuation methods, which are discussed in this course.



Instructor

Delta Publishing

For many years, Delta Publishing has offered a wide variety of continuing education courses for financial professionals. Topics covered by Delta’s courses include accounting, financial management, budgeting, investments, financial statement reporting, business management, IFRS, ethics, valuations, real estate, and business writing. The diversity and breadth of Delta’s course offerings make the company a prolific and unique contributor to the CPE world. Delta’s well-credentialed authors and contributors have also been published in numerous academic and professional journals and quoted by some of the leading financial media outlets.



Course Specifics

Finance
Jan 12, 2018
Ability to use advanced mathematical formulas.
SS3140109
71
None


Compliance Information

103220
Qualifies for CA Fraud: No


Learning Objectives

Upon successful completion of this course, participants will be able to:

Chapter 1

  • List the steps involved in business valuation
  • Identify the various approaches and methods in determining what a business is worth

Chapter 2

  • Cite the concepts and computational procedures in valuing securities, bonds, and stocks
  • Identify important concepts of the price earnings ratio, beta, and other pragmatic valuation approaches
  • Identify approaches to determine the value of an income producing property


Table of Contents

Chapter 1 – Corporate Valuations

Learning Objectives

Steps in Valuation

Step 1: Analyze Historical Performance

Matching Value Definitions and Valuation Reasons

Fair Market Value

Replacement Value

Liquidation Value

“Going Concern” Value

General Approaches to Business Valuation

Market Comparison

Earnings (or Cash Flows)

Assets

Performing a General Analysis of the Company Being Valued

Step 2: Forecast Future Performance

Industry Outlook

Customers and Markets

Products and Services

Employees and Management

Assets

Historical and Projected Financial Performance

Step 3: Estimate the Rate of Capitalization Rate

Step 4: Estimate Valuation

1. Adjusted Net Assets Method

2. Gross Revenue Multiplier Method

3. Capitalization of Earnings Method

4. Price-Earnings Ratio Method

5. Dividend Payout (or Dividend Paying Capacity) Method

6. Excess Earnings Return on Assets Method

7. Excess Earnings Return on Sales Method

8. Discounted Cash Flow Method

Abnormal Earnings Approach

Using a Computer to Help

9. Combining Valuation Methods

Earnings Surprises

Step 5: Compute and Interpret Results

Marketability Discounts

Control Premiums and Discounts

Summary

Revenue Ruling 59 - 60

Section 1. Purpose

Section 2. Background and Definitions

Section 3. Approach to Valuation

Section 4. Factors to Consider

Section 5. Weight to Be Accorded Various Factors

Section 6. Capitalization Rates

Section 7. Average of Factors

Section 8. Restrictive Agreements

Section 9. Effect on Other Documents

How to Market Valuation Services

Additional Readings

Chapter 1 Review Questions

Chapter 2 – Security and Real Estate Valuation

Learning Objectives

How to Value a Security

How to Value Bonds

How to Value Common Stock

Single Holding Period

Multiple Holding Period

How to Forecast Stock Price — A Pragmatic Approach

What are the Determinants of the Price-Earnings Ratio?

How to Read Beta

What Does It Mean When a Firm's Stock Sells on a High or Low P/E Ratio?

What Other Pragmatic Approaches Exist?

The Price-Sales (P/S) Ratio

The Price-Dividends (P/D) Ratio

The Price-Book (P/B) Ratio

What is the Bottom Line?

How Do You Value an Income Producing Property?

Conclusion

Chapter 2 Review Questions

Review Question Answers and Rationales

Glossary

Qualified Assessment

Answer Sheet

Course Evaluation



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Online Access

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online access
Hard Copy

Our self-study materials are authored by top-quality, industry experts. You’ll receive a bound notebook of all the course materials, shipped to you within one business day. In addition, you’ll also have full online access. Each self-study package includes a robust collection of learning and reference materials to help you cover the information efficiently and put it into practice immediately.

hard copy
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Experience high-quality instruction with our Self-Study Videos, available to you 24/7. With more than 80+ videos currently in the Western CPE Self-Study Video library, you can see and hear our expert instructors deliver the information you need in a dynamic way that allows you to immediately apply your learning. Unlike a live course or webcast, you can complete the course on your own time, playing and pausing as needed. Self-Study Videos allow you to complete your CPE requirements on your own time.

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