Welcome to the Valuation course. Most business decisions require rigorous financial analysis to assess their implications for shareholder value. That makes it essential for all business managers to master a core set of financial tools and valuation skills that complement their strategic acumen. To help you develop these skills. McKinsey & Company has created a 7-module course with 6.5 hours of instruction. In this course, you will learn how to:
- Identify key drivers of value creation
- Estimate how changes in performance or strategy will affect the value of a company
- Conduct a detailed historical analysis of a company’s performance
- Understand core valuation concepts, such as NOPLAT, invested capital, free cash flow, and ROIC
- Estimate the weighted average cost of capital (WACC)
- Forecast free cash flow
- Build a valuation model spreadsheet to estimate a company’s equity value using the discounted free cash flow method