Financial Modeling and Valuation Course

Introduction

The course extends the core theory introduced in Principles of Finance by emphasizing its practical application to strategic financial decisions and potential financial problems.

Duration

5days

Who should attend?

•          Financial Analysis
•          Business Entrepreneurs
•          Accountants
•          Bookkeepers
•          Business managers
•          Investment officers
•          Managing directors

Course Objective:

•          Analyzing and understand an income statement
•          Analyzing and understand a balance sheet
•          Analyzing and understand a cash flow
•          Understanding use of financial modeling in financial reporting
•          Use of  Discounted Cash Flow (DCF) and Weighted Average Cost of Capital
•          Use of excel in financial modelling

Course content

Module 1: Valuation

Introduction to valuation

•          The importance of valuation
•          Understanding enterprise value and equity value

Comparable Company Analysis

•          Selecting comparable companies
•          Spreading comparable companies
•          Analyzing the valuation multiples
•          Concluding and understanding value

Precedent Transactions Analysis

•          Selecting comparable transactions
•          Spreading comparable transactions

Discounted Cash Flow (DCF) analysis

•          Understanding unlevered free cash flow
•          Forecasting free cash flow
•          Forecasting terminal value
•          Present value and discounting
•          Understanding stub periods
•          Performing sensitivity analysis

Weighted Average Cost of Capital (WACC)

•          Using the CAPM to estimate the cost of equity
•          Estimating the cost of debt
•          Understanding and analyzing WACC

Module 2: Building an Integrated Cash Flow Model

Introduction to financial modeling

•          Understanding the links between the financial statements
•          Understanding circularity
•          Setting up and formatting the model
•          Selecting model drivers and assumptions

Modeling and projecting the financial statements

•          Projecting the income statement
•          Projecting the balance sheet
•          Projecting the cash flow statement
•          Creating the debt and interest schedule
•          Revolver modeling

Analyzing and concluding the model

•          Analyzing the output
•          Stress testing the model
•          Fixing modeling errors
•          Advanced modeling techniques
•          Using the model to create a Discounted Cash Flow (DCF) Analysis