Discover how you unlock value in volatile markets
Worldwide markets conditions in recent years have been characterized by increasing volatility, caused by either financial markets instability and/or political and economic uncertainty. Under these unstable conditions, modern organizations must react in an agile way to a rapidly changing environment.
Market volatility harbours risk, and opportunities. Traditional valuation techniques, such as the Discounted Cash Flow (DCF) analysis, by their very nature, do not properly capture the value implication of the new opportunities brought forward by changing economic conditions. This leads to substantial misevaluation of assets and investment projects.
The program integrates the traditional DCF approach with decision tree analysis and option pricing techniques to develop valuation tools that are more reliable for assessing value drivers under great economic and technological uncertainty. Key concepts of decision risk analysis will be applied to a variety of problems in the context valuation of investment projects with and without strategic risk. The program will develop both the necessary theoretical tools and the analytical skills, with a problem-solving emphasis.
The methodology developed in the program can be successfully applied to a great number of business situations, ranging from capital budgeting to valuation of acquisition targets in M&A and Private Equity, as well as the valuation of Intellectual Property.
How you will benefit
- Learn advanced techniques for asset valuation in highly volatile markets
- Develop a framework for integrating traditional DCF and project risk analysis
- Further your understanding of valuation of growth options and corporate flexibility
- Develop the necessary tools for decision making under conditions of strategic (i.e. competitive) risk
|Day 1||09:00 – 17:30|
|Day 2||09:00 – 17:30|
Day 1 | Strategic risk, technological risk and the value of flexibility
- Valuing managerial flexibility in volatile markets
- Decision trees analysis and risk simulations
- The binomial model approach to valuation in volatile markets
Day 2 | Assessing value in volatility markets
- Assessing volatility estimates
- Asset valuation in volatile markets
- Integrating DCF, Options Analysis, and Decision-Risk analysis.
Unlocking Value in Volatile Markets: an advanced valuation program is particularly relevant for professionals involved in valuations of significant investments in highly volatile industries for Strategic Planning, Capital Budgeting, Merger and Acquisitions, Private Equity, Licensing of Intellectual Property – including general managers as well as financial consultants and specialists.
To attend this program, a good working knowledge of valuation and Discounted Cash Flow (DCF) Analysis is required. Please contact us should you feel the need to verify your level of valuation knowledge.
If you wish to first solidify your valuation knowledge, please look into our Valuation program.