Corporate Analysis Valuation and Modeling
14+ hours of instruction
20 Demonstrations
32 Participant exercises
Downloadable professional level model
Corporate Analysis Valuation and Modeling
Basic corporate analysis and valuation, whether for one’s own company or for investments, usually relies on the creation of a dynamic discounted cash flow model. Building one from a blank worksheet, using someone else’s, or trying to manipulate one that is already created is difficult without a thorough knowledge of technical spreadsheet skill and solid financial concept understanding. This course provides participants with a complete understanding of every component to building and using a powerful discounted cash flow model. In addition, major concepts are expanded upon to ensure that the assumptions being used are correct and the modeling is completed in the most accurate way possible. Learning valuation and modeling is best done with a combination of theory, demonstration, and hands-on practice. Each section below is designed in such a way. Almost all exercises are Excel based and contribute to understanding a fully functioning, dynamic model that is also provided to participants.
Course Outline
I. What is Financial Modeling?
II. Why Professionals Build Models
III. Which Models to Implement
IV. Basic Model Layout and Design
Working with a Bad Model
I. Time Value of Money Functions
II. Mathematical/Statistical Functions
III. Logical Functions
IV. Lookup Functions
V. Naming Ranges/Data Validation Lists
VI. Function Combinations
Time Value of Money Functions
Mathematical/Statistical Functions
Logical Functions
Lookup Functions
Naming Ranges/ Data Validation Lists
I. Overview of a Scenario Selector
II. Specific Scenario Selector Setup & Use
Exercise: Scenario Selectors
I. Overview of Dates and Timing Set Up
II. Specific Date and Timing Functions and Organization
Exercise: Dates & Timing
I. Overview of Using a Bottom Up Methodology for Revenue and Costs
II. Fixed Costs vs. Variable Costs
Exercise: A Bottom Up Approach
III. Integrating Revenue and Costs into a Model
I. Capital Expenditures: Setting up a schedule for CAPEX
Exercise: CAPEX Schedules
II. Depreciation Calculations
Exercise: Depreciation Functions & Methodology
III. Integrating Capex & Depreciation into a Model
I. Basic Fixed Rate Amortization
Exercise: Amortizing a Fixed Rate Loan
II. Floating Rate Amortization
Exercise: Amortizing a Floating Rate Loan
III. Revolving Credit Facilities
Exercise: Setting Up All Aspects of a Revolving Credit Facility
IV. Integrated Debt into a Model
I. The Various Forms of Equity Ownership
II. Calculating Share Ownership
Exercise: Calculating Equity Ownership by Type
I. What Working Capital is and Why it is Important
II. The Cash Conversion Cycle
Exercise: Calculating Working Capital from the Cash Conversion Cycle
Exercise: Calculating the Net Change in Working Capital
I. Income Statement, Balance Sheet, and Cash Flow Statement
II. How Each Statement Draws from the Core Concepts, Calculates, and Connects
I. Free Cash Flow to the Firm (FCFF)
Exercise: Calculating FCFF in the Model
II. Free Cash Flow to Equity (FCFE)
Exercise: Calculating the FCFE
III. The Cost of Equity, Cost of Capital, & WACC
Exercise: Calculating the Correct Rates
IV. Calibrating Other Discounts: Size, Liquidity, Sovereign, and Control Risk
V. Terminal Value: Various Methodologies & Calculations
Exercise: The Differences & Sensitivity of Terminal Value Methods
I. Building Checks into the Model to Make Sure Calculations are Correct
II. Balancing the Balance Sheet Automatically
Exercise: Balance a Balance Sheet
III. Cash Checks
I. Changing the Periodicity of Results
II. Building Snapshot Views
III. Relevant Metrics and Ratios
IV. Charting
I. Setting Up a Model for Capital Structure Analysis
Case Study & Exercise: Optimal Debt & Equity
II. How to Calculate the Optimal Capital Structure for a Company
