Build your foundation: identify the key terms and concepts related to valuation.

Calculate the free cash flows of an organization; and understand why they are important to the process of reaching an accurate valuation.

Choose appropriate financial ratios to estimate the future cash flows of an organization in both the present and long term using the DCF method.

Apply knowledge of risk and the capital asset pricing model (CAPM) to estimate the weighted average cost of capital (WACC) of an organization.

Apply knowledge of the DCF method to value private organizations; calculate cross-border valuations; and identify the different approaches to valuation in these circumstances.

Assess the considerations for obtaining accurate valuations of mergers and acquisitions; leveraged buyouts; and distressed valuation.