Over the past 40 years there has been a progressive and huge divergence between company balance sheet value and value expressed by shareholders represented by share price and market capitalisation. Furthermore, the statistical correlation between accounting based measures of performance over a 1 to 3 year time horizon and corporate share value is poor. This module looks at the real driving forces behind share values in today's world.
What you will learn
- Shortcomings of historical valuation methods
- Basics of the Capital Asset Pricing Model
- Market Value Added (MVA) and Economic Value Added (EVA) – a step forward
- Shareholder Value Analysis (SVA) - current thinking on value creation and the importance of Intangible Value
- Rappaport's guiding principles of value management
Who should attend
Board members, senior managers and accountants with responsibility for strategy and budgeting.
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- Historical valuation factors – book value, return on capital employed (ROCE), price/earnings (P/E) ratio
- Current viewpoint and drawbacks of historical valuation factors
- Capital Asset Pricing Model (CAPM)
- Market Value Added (MVA)
- Economic Value Added (EVA)
- Shareholder Value Added (SVA)
- Principles of SVA: Drivers of Shareholder Value
- Rappaport's Principles of Value Management
Tel: 0330 060 3303