This course introduces the fundamental valuation methods used in investment banking and financial analysis. It is designed to help learners understand how professionals estimate the value of companies using real-world approaches.
The course begins with Comparable Companies Analysis (Comps), which values a company by comparing it to similar publicly traded firms. You will learn how financial multiples are used to assess relative value in the market.
Next, it covers Precedent Transactions Analysis, a method that looks at past M&A deals to determine how much investors have previously paid for similar companies. This helps establish valuation benchmarks based on real acquisition data.
The course also explains how to build and interpret a Discounted Cash Flow (DCF) model. This valuation method estimates a company’s value based on its future cash flows, discounted back to their present value.
By combining these three key approaches—Comps, Precedent Transactions, and DCF—you will gain a strong foundation in investment banking valuation techniques and understand how analysts determine a company’s fair value in different scenarios.
