Equity Value, Net Debt and Enterprise Value

A good command of enterprise value techniques and the proper treatment of net debt is essential in modern equity valuation. Whether it is about unlevering/relevering of betas, using multiples or applying entity valuation methods such as the weighted average cost of capital (wacc) approach: Valuation professionals always need to know how to treat financial positions that are not outright “equity”.

Unfortunately, this is not an easy task. Even handling straight financial debt is sometimes problematic (how risky are future debt payments? What is the right cost of debt?). But things get a lot more complicated if we turn to leases, pension liabilities, cross shareholdings or put options to minorities. And do not forget the asset side: How should we properly account for cash?
In his presentation, Matthias will go through the most important aspects of this complex, also by means of practical examples. He will show that mastering the “net debt”-challenge is only possible if a fundamental understanding of the relevant techniques and an economic perspective go hand in hand. The presentation is aimed at Accountants, Investors, Analysts and everybody else who is interested in advanced equity valuation topics.

Following the presentation participants will be able to raise questions and discuss related items. Snacks and refreshments will be provided. 

Please note: Due to a large increase in no-shows in 2011, the German CFA Society will charge, as of 01.01.2012, a fee of €25.00 to members who have registered for a lecture but do not attend the respective event. If you cancel at least 24 hours in advance, there will still be no charge. We thank you for supporting this new policy that will make it possible to continue to offer attending members lecture events at no charge.