Company Valuation Practice Exam
Company Valuation Practice Exam
About Company Valuation Exam
The Company Valuation Practice Exam is designed to test your ability to determine a company’s worth using standard valuation methods. This exam guides you through models such as discounted cash flow, relative valuation and asset-based approaches. Whether you are a finance student, analyst or business owner, this practice exam will reveal your strengths and highlight areas for improvement.
Who should take the Exam?
- Finance students preparing for exams or interviews
- Investment banking analysts and associates
- Equity research professionals
- Corporate finance executives
- Business owners and entrepreneurs
- Consultants and valuation specialists
Skills Required
- Basic understanding of financial statements
- Familiarity with accounting principles
- Comfort with Excel and financial modelling
- Knowledge of time value of money concepts
- Ability to interpret key financial ratios
Knowledge Gained
- How to build a discounted cash flow (DCF) model
- Techniques for relative valuation using multiples
- Methods for asset-based and liquidation valuation
- Use of option pricing models in valuation
- Adjustments for control premiums and minority discounts
- Valuation in mergers, acquisitions and restructuring
- Critical analysis of real-world case studies
Course Outline
The Company Valuation Basics Exam covers the following topics -
Domain 1 – Fundamentals of Company Valuation
- Purpose and applications of valuation
- Identification of value drivers and risk factors
- Overview of the three main valuation approaches
Domain 2 – Discounted Cash Flow Analysis
- Projecting free cash flows
- Calculating the weighted average cost of capital (WACC)
- Determining terminal value
- Conducting sensitivity and scenario analyses
Domain 3 – Relative Valuation
- Common valuation multiples (P/E, EV/EBITDA, P/B)
- Selecting and benchmarking comparable companies
- Adjusting multiples for growth and risk
- Recognising the limits of relative valuation
Domain 4 – Asset-Based Valuation
- Distinction between book value and market value
- Net asset value and liquidation value methods
- Accounting for intangible assets and goodwill
- Reappraisal and impairment considerations
Domain 5 – Option Pricing Models
- Fundamentals of the Black-Scholes model
- Valuing employee stock options and warrants
- Applying real options in strategic decisions
Domain 6 – Valuation Adjustments and Control Premiums
- Understanding minority discounts and control premiums
- Adjusting for liquidity and marketability
- Effects of ownership structure on value
Domain 7 – Valuation in Mergers, Acquisitions and Restructuring
- Deal structuring and its impact on valuation
- Estimating and valuing synergies
- LBO valuation and financing structures
- Post-transaction value creation strategies
Domain 8 – Practical Applications and Case Studies
- Valuation of listed public companies
- Valuation challenges for private firms
- Sector-specific valuation techniques
- Interactive case study review and model validation
