Digital Finance: Value Creation

For the past several years, investors have once again been large buyers of companies with fast growth and high uncertainty - especially Internet and related technologies. The rapid rise of many such stocks, underpinned by the digital transformation acceleration as a result of Covid-19, raised questions about the disconnect in the stock market that appeared to assign higher value to companies the more their losses mounted.

This module aims to provide more precise valuations critical to investors, and how to adapt well-established valuation principles for high-growth companies and tech start-ups. The core principles of economics and finance apply even in uncharted territories.

Participants will learn about concepts of value creation and understand valuation techniques, including a recent IPO valuation case-study to solidify the key takeaways.

• CEOs, CFOs, COOs
• Investment bankers
• Management consultants
• Financial analysts
• Institutional investors
• CFA candidates

• Understand shareholder value creation and the core value principle
• Identify the key drivers of investment returns with excel
• Analyze valuation techniques for high growth companies and start-ups
• Learn about venture capital and financing structures
• Solidify key takeaways using a recent IPO case study

Participants are not required to have specific prior experience of any of the subject areas. More experienced individuals will be able to build on their knowledge through practical, current case studies.

Key drivers of investment returns

• Identify the key drivers of investment returns with excel
• Crystallize abstract concepts using numbers
• Understand the concept of financial leverage
• Analyze the impacts to IRR and ROE

Core valuation principle

• Understand the core value principle
• Identify how to create shareholder value
• Recognize how corporate strategy drives financial valuation
• Analyze valuation techniques for high growth companies and start-ups

Venture capital financing

• Examine venture capital investing structures
• Distinguish various financing structures for start-ups
• Understand how to value high-growth companies and start-ups
• Explore new and creative ways to IPO

Group case study

• Synthesize key takeaways using a recent IPO case study
• Identify what drives total returns for IPO investors
• Examine the different factors that drive the IPO
• Contrast differences in valuation techniques between high-growth and stabilized companies