Corporate Finance & Valuation

  1. F1

    Corporate Finance Fundamentals

    The three decisions a company makes with money, and what it is trying to maximise.

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      Topic 01

      Corporate Finance

      Topic 02

      Accounting: One Year, Two Questions

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      Topic 01

      Profit Maximisation

      Topic 02

      Value Maximisation

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  2. F2

    Time Value of Money

    The arithmetic everything else rests on. Discounting, compounding and the rate.

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      Topic 01

      Nominal

      Topic 02

      Real Discount Rate: Matching the Rate to the Cash Flow

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      Topic 01

      Annuity

      Topic 02

      Perpetuity: What Changes When the Payments Never Stop

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  3. F3

    Cash Flow and Value Drivers

    What is being discounted. Growth, reinvestment, margin and return on capital.

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      Topic 01

      Revenue Growth

      Topic 02

      Reinvestment: What Each Rupee of Growth Costs

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      Topic 01

      FCFF

      Topic 02

      FCFE: The Three Lines Between the Two Numbers

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  4. F4

    Cost of Capital

    The denominator. Risk-free rate, equity risk premium, country risk, beta and the weighted average.

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      Topic 01

      Sunk Cost

      Topic 02

      Opportunity Cost: Which One Belongs in a Decision

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  5. F5

    Capital Structure

    The financing decision. What the mix costs, what it constrains and when it becomes distress.

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      Topic 01

      Operating Leverage

      Topic 02

      Financial Leverage

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      Topic 01

      Gross Debt

      Topic 02

      Net Debt: Which One the Bridge Deducts

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  6. F6

    Capital Budgeting

    The investment decision. Which projects clear the bar, and where the rules disagree.

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      Topic 01

      Payback

      Topic 02

      Discounted Payback: When One Never Pays Back at All

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      Topic 01

      Independent

      Topic 02

      Mutually Exclusive Projects

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  7. F8

    Payout Policy

    The third decision. What is returned when reinvestment has run out of good options.

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      Topic 01

      Dividend Yield

      Topic 02

      Payout Ratio: Two Denominators, Two Answers

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      Topic 01

      Dividend

      Topic 02

      Buyback: The Same Cash, Two Different Promises

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  8. F9

    Valuation Fundamentals

    The map of valuation. The approaches, what each assumes, and the bridge between firm and equity.

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      Topic 01

      FCFF

      Topic 02

      FCFE Valuation: Why the Two Routes Disagree

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      Topic 01

      SOTP

      Topic 02

      Consolidated Valuation: When Each One Is Right

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      Topic 01

      Enterprise Value

      Topic 02

      Equity Value: Matching Value to Multiple

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      Topic 01

      Value

      Topic 02

      Price: Why the Two Numbers Are Rarely the Same

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      Topic 01

      Asset Value

      Topic 02

      Earnings Value: What It Has Against What It Earns

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      Topic 01

      Book Value

      Topic 02

      Adjusted Book Value: The Four Adjustments

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      Topic 01

      Liquidation Value

      Topic 02

      Going-Concern Value

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  9. F10

    Discounted Cash Flow

    The intrinsic method, built step by step from normalisation to terminal value.

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      Topic 01

      Base Case

      Topic 02

      Bull Case

      Topic 03

      Bear Case: What Three Answers Mean

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      Topic 01

      Two-Stage

      Topic 02

      Three-Stage DCF: Where the Growth Step Goes

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      Topic 01

      Forward

      Topic 02

      Historical Financials: Which One a Model Uses

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      Topic 01

      Operating

      Topic 02

      Non-Operating Asset: In the Model or the Bridge

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  10. F11

    Relative Valuation

    The market method. Peers, multiples and which one a business deserves.

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      Topic 01

      DCF

      Topic 02

      Relative Valuation: What Separates the Two Answers

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  11. F12

    Transaction Valuation

    Valuation when control changes hands. Deal value, sources and uses, accretion, the LBO.

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      Topic 01

      Deal Value

      Topic 02

      Enterprise Value: Which Number a Deal Quotes

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      Topic 01

      Control Premium

      Topic 02

      Minority Discount: One Fact, Two Ends

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      Topic 01

      Trading Comps

      Topic 02

      Precedent Transactions: Where the Gap Comes From

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      Topic 01

      Strategic Buyer

      Topic 02

      Financial Buyer: What Each One Is Solving

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  12. F13

    Valuation Discipline

    The judgement layer. Turning a range into an answer without pretending to precision.

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      Topic 01

      Scenario

      Topic 02

      Sensitivity Analysis: Several Inputs or One

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