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| AI Infusion to Valuation Models for High-Risk Single Product Firms (2197Q) |
Course CPE: 2 hours
Field(s) of Study: Finance–1 hr; Economics–1 hr
Program Level: Intermediate
Prerequisites: Previous training or research on subject matter being taught. Such persons are often at a mid-level within the organization, with operational and/or supervisory responsibilities.
Advanced Preparation: None
Delivery Method: QAS Self-Study |
Item
Number: 25SBV0911AIV
Shipping Weight: 0lbs. 0oz. |
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$147.00 |
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Recording Date: September 11, 2025
Presenter: Alan Gorlick
Program Description:
Valuing a company that bets everything on developing one or two difficult potentially valuable products has many of the same issues as valuing any company. This is especially true in our volatile interest rate environment. Interest rates, cashflow, and exogenous factors must all be modeled.
However, the single product company, such as a biotech firm, has the added potential of a sudden discontinuous good or bad cash event. The cash event could be running out, refinancing possibly at an unfavorable rate, or a multi-year windfall.
Artificial Intelligence (AI) can be broadly divided into two fundamental domains. The first involves pattern recognition and task automation. In its earliest form, it was the engine for Amazon and Netflix recommendations. Of course, AI is a lot more capable now.
The second AI domain involves generation. It could be computer code, a picture, an essay, a formula.
This session addresses valuation for the single product case with a modeling regimen that leverages pattern recognition AI for efficiency, faster iteration, and more realistic models. AI is injected into Bayesian math and Monte Carlo simulation.
After completing this course, you will be able to:
- Identify discounted cash flow models for single product firms
- Recognize AI pattern recognition tools for literature searches and historical data
- Determine valid hurdle rates without solving differential equations
- Select AI data to include in Bayesian priors and Monte Carlo probability cells
- Select the Bayesian and Monte Carlo tools for application
- Differentiate the results especially tornado charts and continuous probability distributions
For more information regarding refund or concerns, please contact our offices at (800) 677-2009.
The Consultants’ Training Institute (CTI) is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org. |
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