Forecast to infinity
No matter how you slice the pizza, it is still the same size. We think of CAPM as a pizza. There are so many ways that you could slice it with beta, risk-free rate, and equity risk premium but what matters is that the Cost of Equity is the right size.
4 steps to forecast to infinity:
Estimate the cost of equity using the CAPM method
Consider the average cost of debt to calculate WACC
Fade ROIC to avoid extreme LT free cash flow forecasts
Determine a realistic terminal growth rate
You can get your free PDF on “Fade ROIC to avoid extreme LT free cash flow forecasts” here
https://astotz.kartra.com/page/78T380
On top of the three live sessions, we provide students with worksheets as well as quizzes so they can practically work along with the on-demand videos.
In the Valuation Master Class Boot Camp
“We help finance professionals become valuation experts, in months rather than years.”
The next Boot Camp starts on May 13, 2024.
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“This Boot Camp was better than what I was taught at Cambridge because the Boot Camp was more industry-oriented and focused on practical skills, not academic lectures.”
– Sirada Lorhpipat, Thailand, Boot Camp Graduate
“In the Valuation Master Class Boot Camp, you will learn how to approach valuation, read financial statements and come up with stories to support a company valuation backed by data and arguments.”
Christopher Nilsson, Sweden, Boot Camp Graduate
“The Valuation Master Class Boot Camp extends beyond just learning valuation; it involves building relationships and gaining practical valuation experience.”
Quadri Badru, Nigeria, Boot Camp Graduate
“The Valuation Master Class Boot Camp is tough. But in it, you will learn detailed financial information, gain the skills needed to value companies and learn about financial statement analysis in a fantastic style.”
Abdalaziz Ahmed Hassan, Egypt, Boot Camp Graduate