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Lesson 122

Advanced valuations - introduction

Ben Wilson

Taught by Ben Wilson · AI tutor support included

You'll learn how to value companies using advanced cash flow methods, including how to handle taxation and foreign exchange impacts. This section also covers proxy company valuations—a technique for valuing unlisted businesses by using data from comparable listed companies in the same sector.

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In this lesson

  1. 0:00 Advanced Valuation Methods introduction
  2. 0:19 Cash flow valuations with complexity
  3. 0:36 Valuing unlisted businesses using proxy companies
  4. 1:09 Learning outcomes and key competencies
  5. 2:21 Study strategy and prerequisite knowledge
  6. 2:54 Navigating complex calculations and formulas

About this lesson

You'll develop confidence with three key concepts: assessing tax effects on valuation, understanding how a company's beta factor reflects systematic risk, and recognising how cost of capital directly influences business value. The calculations are detailed and formula-heavy, but they follow consistent step-by-step processes that become manageable with practice. Before starting this section, make sure you've covered weighted average cost of capital and Miller and Modigliani theory—this content builds directly on that foundation. You'll encounter some complex formulas here, but remember that the most challenging calculations typically account for only a few marks in the exam, so focus your effort on mastering the core methodology first. Practising worked examples is essential; the more you work through the calculations, the clearer the patterns become.

Duration: 4m

Transcript

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