Equity Valuation Toolkit

October 7, 2010

This toolkit gives MFI managers the theoretical understanding and practical examples to conduct an equity valuation of their institutions. Valuation analysis is an invaluable important skill for MFI managers, especially those currently overseeing major corporate transformations, mergers and acquisitions, joint ventures or IPOs. By understanding valuation, MFI managers can make better capital structure decisions and conduct precise long-term strategic planning. After previewing the self-study guide, working through the practical exercise and familiarizing themselves with the included Excel models, managers will have the knowledge, skills and tools necessary to apply a variety of valuation methodologies to their own institutions.

The tools included are:

A self-study manual that explains common methodologies for valuing traditional financial institutions and outlines some challenges and caveats when applying these methodologies to MFIs. The toolkit also recommends different methodologies based on the lifecycle stage of the MFI. The manual covers additional considerations that may influence valuation, including qualitative factors such as sovereign risk, and market forces. A practical example that guides users step-by-step through a comprehensive valuation of a fictitious MFI using an Excel valuation model. A customizable Excel model with market and comparable data as of April, 2009 that users can employ to conduct an equity valuation at their own institutions.Download the English versionDownload the Spanish version