Corporate Finance and Business Valuation with Aswath Damodaran
  • Introduction
  • Agenda
  • Experts
  • Venue
  • Partners
  • Registration

There are three basic questions that corporate finance tries to answer - Where and how should a business invest its resources? How should a business raise funds to finance its investments? How much should a business return to its owners and how much should it reinvest? In this two-day seminar, we look at the tools and techniques that have been developed in theory to answer these questions, and how best to apply them in practice. In addition, we look at the big picture of corporate finance, the interrelationship between corporate financial decisions and how these decisions affect the value of a business.

The course is designed for participants with a wide range of backgrounds, from those with little exposure to corporate finance to those with several years of experience and it is also structured for both those who work at businesses (in corporate finance or general management) and for those who just value these businesses (portfolio managers, analysts).

The class will start with a discussion of the different interests that make up the modern corporation – managers, stockholders, lenders, analysts and society – and their different objectives. The potential for conflict is large and many problems can be traced to this conflict. We follow up with the first of the big questions in corporate finance. What is risk and how do we convert a risk measure into a hurdle rate? In the process we look at different models of risk and return and how they can be used to assess hurdle rates in different currencies, countries and companies. We also examine the cost of debt and the resulting cost of capital for a firm.

In the second part of the session, we turn our attention to investment analysis. In particular, we consider what a project is and how to estimate cashflows for projects. We will draw a distinction between accounting earnings and cashflows and examine different decision rules that can be used to determine whether an investment passes muster.

In the third part of the session, we evaluate the financing choices made by a firm in terms of both how much it chooses to borrow and what type of financing it uses. We look at different approaches to coming up with the optimal debt ratio for a firm and map out ways of getting from a firm’s current debt ratio to its optimal.

In the fourth part of the session, we examine how much firms pay in dividends and whether they should pay more or less. In the process, we also look at when it makes sense to buy back stock rather than pay dividends. We close the class by tying corporate finance decisions to value.

In the final part of the session, we will bring all of these components together in a value assessment, which we will tie to corporate decisions. Thus, we will explore the determinants of intrinsic value in a company and what managers can do to enhance value.

Process

This is not a theory or an academic class but an applied, big-picture class. As we introduce concepts, models and measures and apply them to real companies: Disney, Baidu and Tata Motors. Thus, we will estimate the cost of equity and capital for the companies, evaluate what the right mix of debt and equity is at these companies and determine whether their policies on returning (or not returning) cash to stockholders makes sense. We will close the process by valuing both companies.

While the session will be delivered lecture-style, it is an open session where participants are encouraged to actively involve them, not only by asking specific questions that they need answers to but also by bringing in their experiences and companies into the discussion. If participants have laptop computers, they can bring them, as well as the financial statements of any company that they are interested in analyzing.

Day 1

 Session Time         Course Material
09.00 AM - 10.45 AM

The Objective in Corporate Finance
Dueling interests
First steps on hurdle rates

11.00 AM - 12.30 PM

Risk free rates & Currencies
Risk premiums
Relative risk measures

01.30 PM - 03.30 PM

From beta to cost of equity
Debt & its cost
Cost of capital

03.45 PM - 05.30 PM

Measuring returns
Accounting returns & cash flows
Side costs & side benefits

Day 2

 Session Time        Course Material
09.00 AM - 10.45 AM

The rest of investment analysis
The Financing Trade off
The optimal mix of debt & equity

11.00 AM - 12.30 PM

More on optimizing debt
The right type of financing for a firm
The financing principle

01.30 PM - 03.30 PM

Dividend policy
Should you return more cash or less?
Valuation 101

03.45 PM - 05.30 PM

Value Enhancement

Aswath Damodaran Aswath Damodaran Professor, Stern School of Business at New York University
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Vivanta by Taj – President

90, GD Somani Road, Cuffe Parade
Mumbai -400005

In case of queries, please email us at training@vccircle.com


Academic Partner

CFA India

CFA Institute is the global association of investment professionals that sets the standard for professional excellence and credentials. The organization is a champion for ethical behavior in investment markets and a respected source of knowledge in the global financial community. The end goal: to create an environment where investors' interests come first, markets function at their best, and economies grow. The establishment of its first India office in Mumbai allows for renewed focus on advocacy. CFA Institute has more than 127,000 members in 150 countries and territories, including 120,000 CFA charter holders, and over 140 member societies. In India, there are over 1,400 members, including 1,200 CFA charter holders.

The , the India Society of CFA Indian Association of Investment Professionals (IAIP) Institute, was established in April 2005 as an association of local investment professionals consisting of portfolio managers, security analysts, investment advisors and other financial professionals. As one of the over 140 CFA Institute member societies, the IAIP connects local members to a global network of investment professionals.

Industry Partner

AIBI

AIBI is a voluntary association of Investment Bankers in the country. It was formed in 1990’s at the initiative of Indian Capital Markets regulatory body, SEBI. All Merchant Bankers, registered with SEBI are eligible to be members of AIBI. AIBI is India’s only association representing the investment banking industry.

On January 21, 2012 the name of the Association was changed to “Association of Investment Bankers of India” to encompass all the activities carried out by the Investment Bankers other than Issue Management. Currently, there are fifty seven members of the association.

AIBI-in a new direction: AIBI is now reinventing itself. AIBI strives to be an objective Industry body with a credible action plan. AIBI balances its role as an industry body with its role of an influencer so that there is never any conflict of interest for the members and ensure that its activities are not confined to selected few but are available and are beneficial to all members.

AIBI is represented, through its Chairman, on SEBI’s Primary Market Advisory Committee, a forum that provides an opportunity to present the industry’s viewpoint on various issues. In the last one year AIBI has made significant strides in enhancing its capabilities. We have been working closely with SEBI in the recent times in improving the efficiencies of the Indian Capital Markets.
AIBI has a dedicated website (www.aibi.org.in) and plans to make this website content rich to showcase our industry.

Standard Fee: INR 90,000 + 14% Service Tax / USD 1500 + 14% Service Tax
Investment For CFA Members: INR 80,000 + 14% Service Tax or USD 1350 + 14% Service Tax

For group registration (3 or more), please write to training@vccircle.com or call Fazal/Raj on 91-120-4171111 / 91- 9560888566 / 9560888933

There are two ways to register:  

1. Online registration: Click Here
2. Offline registration through cheque/DD  |  Download offline registration form: Click Here

Payment Details:

1. Cheque/DD to be made in favor of: "Mosaic Media Ventures Pvt Ltd" payable in New Delhi to

    Mosaic Media Ventures Pvt. Ltd.
    A-83, Ground Floor,
    Sector -2, Noida - 201301

    Please attach a note with details of the cheque: Name of the delegate(s), Organization, Designation, Address, Contact No., E-mail ID

2. Directly deposit cash, submit cheque or transfer online to our ICICI Bank a/c:

Indian Delegates
 Account Name: Mosaic Media Ventures Pvt. Ltd.
 Account No: 629705014337
 Branch Name: ICICI Bank
 Branch Add: Mayur Vihar - Phase 1, Delhi - 110091
 IFSC Code: ICIC0006297
International Delegates
Account Name: Mosaic Media Ventures Pvt. Ltd.
Account No: 629705015595
Bank Name: ICICI Bank 
Branch Add: Mayur Vihar, Phase-1, Delhi - 110091
IFSC Code: ICIC0006297 | Swift Details: ICICINBBCTS

 

Refund and Substitution Policy :

No refunds will be granted for cancellations made within 15 days of the workshop. Those delegates, who have confirmed and do not attend, are liable to pay the full course fee and no refunds will be granted.
Cancellation fee of 50% will be applicable 21 days prior to the workshop.
Cancellation fee of 25% will be applicable up to 30 days prior to the workshop.
Substitutions within a company are permitted through the workshop/training date, request must be by email to training@vccircle.com
Company reserves the right to amend content, expert, venue & date(s) of the workshop
Participants will be refunded the registration fee in full in case the workshop gets cancelled.
In case of refunds or cancellation mentioned above - the inward and outward Forex transaction cost (s) and currency fluctuation differential will be charged while accounting for the refund.
Company assumes no liability for any costs including transportation, hotel reservations or any other costs incurred by participants in the event of cancellation.