Folks,
Herewith I have given below the link for Batch VIII - Day 2 - Presentation made in Fast Track Webinar Series for IBBI Valuation Exam (SFA) on "Valuation Approaches and Methods"
Overview of Valuation - (4 Marks)
- Meaning of value: Difference between price and value; definition of Value
- Types of value: fair market value, fair value, intrinsic value, investment value, synergistic value, market value, special value
- Premise of valuation: going concern and liquidation
- Purpose of valuation: mergers and acquisitions, strategy evaluation, identification of under and overvalued assets, legal, financial reporting, scope of work
- Valuation standards (New Topic included)
- Valuation process: understanding the business; planning and preparation; forecasting company performance; selecting the appropriate valuation model; converting forecast to valuation; applying analytical results in the form of recommendations; conclusions
- Valuation report and documentation: scope of the work performed, approach adopted, method applied, key inputs used, assumptions made, conclusion(s) of value and principal reasons for any conclusions reached, and date of report, date of valuation
- Importance of documentation, nature and purpose of documentation, timely preparation of documentation, documentation of valuation procedures performed, assembly of the final documentation, ownership of documentation
Valuation Approaches - (3 Marks)
- Cost approach: net asset value and book value, adjusted value, sum of the parts, replacement cost
- Market approach: quoted market price, price of recent investment and price of recent transaction, relative valuation, concept of multiples, selection of appropriate comparables; adjustments to multiple calculated in accordance to size, lines of operation and geographical areas of operation
- Income approach: discounted cash flow approach; terminal value; present value; adjusted present value approach; internal rate of return; cash flow analysis- end of year and mid of year conventions; earning capitalization method /yield method; concept of perpetual growth; concept of cost of capital and capitalization rate
- After investing substantial amount of time and Himalayan size of Efforts, Research & Pain; this material is brought out.
- Your acknowledgement (with your name, location & contact no) in this blog by few words will be an encouragement for this Hard Work
Dr GKR
12th August 2020
Wednesday
Dear Raju Sir,
ReplyDeleteMany thanks for your wonderful presentation on Valuation overview (Bases, approaches, methods). Not only concepts got clear, but also understood the trick how questions are framed and answered.
Excellent presentation and explained with ease valuation of bases, approaches and methods. Fast coverage of vast topic. Landmine - Goldmine, Mother - Wife, correlation of valuation concepts combined with your practical life examples helps us to remember this complex topic better. Many thanks for your selfless service Dr GKR Sir.
ReplyDeleteToday's presentation was rather fantastic as it had all complex topics and themes imbibed. The same was presented in a lively exam oriented and in orderly manner by Dr GKR Sir.Thanks for all your Research and Dedicated efforts sir...and to Dr Dhanapal as well today..CA ANL Madhavann Chennai 97899 75199
ReplyDeletevery nice presentation, thanks
ReplyDeleteWe really appreciate the selfless help being extended by you. Plus your explanations are lucid and easy to understand. I am sure your classes are going to benefit me and lot others in perparaing them to pass the SFA module of Valuation exam. Thanks, CA Deepak Jain, Gurgaon - 9810026968
ReplyDeleteWonderful presentation. Your techniques,to understand the complexity of the language being adopted in MCQs is made very easy. Regards
ReplyDeleteAmazing presentation of complex issues in a logical & simplified manner.Definitely,the classes will be of great help to me and so many other fellow participants. Sir, you have elaborated that Adjusted Present Value = NPVu + PVd. Here, PVd is the tax effect of Debt component.We have understood the formula. But what is the effect of Debt cost excluding the Tax ? Whether it means that APV does not reflect complete Cost of Capital ? Sir would you enlighten us over this doubt
ReplyDeleteExcellent notes and your session give us confident to me to clear the exam at the earliest. Thanks a lots and God Bless you Dr Sir
ReplyDeleteA very insightful session, it was crisp yet informative session
ReplyDeleteThanks for your and your team efforts sir
Excelent
ReplyDeleteIt was excellent session and clearing concepts . One Suggestion please take full fledged classes in detail on Valuation for examination.
ReplyDeleteExcellent session
ReplyDeletethank you sir for the excellent session
ReplyDeleteA very insightful session
ReplyDeleteToday's topic was on Intangibles including software industry specifics. Very nicely done and presented and a ton of thanks to Dr GKR Sir
ReplyDeleteThe way the topic handled is excellent
ReplyDeleteIt was nice session
ReplyDelete