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Chapter 13

Business valuation

Outcome

By the end of this session you should be able to:

 apply asset based, income based and cash flow based models to value equity,

 apply appropriate models, including term structure of interest rates, the yield
curve and credit spreads, to value corporate debt,

 forecast an organisation’s free cash flow and its free cash flow to equity (pre-
and post-capital reinvestment),

 advise on the value of an organisation using its free cash flow and free cash
flow to equity under alternative horizon and growth assumptions,

 prepare valuations for acquisitions and mergers,

and answer questions relating to these areas.

The underpinning detail for this chapter in your Integrated Workbook can
be found in Chapter 13 of your Study Text

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