Course Content

In this 4-module webinar course, intended for experienced investors, we look at investing in the middle of the COVID-19 pandemic. We cover some of the critical issues on cash flow, balance sheet and working capital which equity analysts need to be familiar with in order to create valuation models for companies in this new environment.

Almost every company will have had some balance sheet stress, as well as the earnings impact which most analysts will feel confident about. In the four modules, we cover:

1            To set the scene and as an introduction, we look at some of the macro factors and company specific factors arising in the pandemic

2            Given the balance sheet strains arising from the pandemic, we consider that cash flow is more important than ever. In this module we outline our approach to cash flow forecasting and include some common misconceptions about the cash flow statement.

3            Working capital analysis will also be important as companies see a massive working capital unwind as a result of the pandemic and here we outline our approach.

4            In order to value companies in this crisis, we first need to understand the impact of the lockdown period and working capital unwind on the balance sheet. With a restated forward enterprise value, we can then examine the more conventional analysis of likely 2021 profitability. We run through a worked example to illustrate our approach.