Course Overview
The entire world’s economy is based on money and value of things. One who understands the basics of valuation and finance is very valuable for the corporate world. Finance is a huge sector where there is no limit of success. Every now and then the reforms are modified and the corporate people search for those who know the grounds like the back of their hands to handle the situations. That is why the course of Financial Modeling and Corporate Valuation has become so important these days.
About financial modeling
The words may sound simple but the process comprises of a lot number of steps that prepare an abstract presentation of a model which resembles a real world financial scenario. The model is not just an imaginary or fictitious output but is supported by logical data calculated with mathematical innuendo.
The mathematical model represents the simple version of the performance of an asset handling financial firm or portfolio of a venture (business or project), or any kind of investment. The financial model means different to different people.
- It might be accounting and applications of corporate financial segment.
- It can be implemented in corporate financial applications in quantitative manner.
- Some considers it as a tradecraft whereas some consider it as a science.
No matter what the notion is, financial modeling has a huge application in the business world. In simple words it is just an approach or an exercise in corporate finance and asset pricing in a quantitative mode. If it is described in the sense of statistics and probability then financial modeling is the technique that where translation of a set of hypotheses is done which are related to the behavior of certain entities related to the business such as market, agents or sales force.
The two major divisions that come under the brackets of Financial Modeling are:
-
Accounting
In this case the financial modeling is largely responsible to forecast the financial statement in corporate finance, accounting and investment banking. In this aspect the financial model is built with respect to the company specifications and then the decisions are taken as per the results of the analysis.
The applications are enlisted below.
- Business valuation especially the part where the discounted cash flow enters. It also handles other valuation problems.
- The entire scenario is sketched as per the model and then the management built their decision based on the forecasts and future trends.
- Capital budgeting.
- Calculations of cost of capital
- Analyzing the financial statements that include operation, leases and research and development.
- Estimation of the future behavior and performance of the entities that are incorporated in the corporate structure by the process of merging and acquiring.
-
Quantitative finance
Another interesting part of the financial modeling is the quantitative analysis of the finance of the business by developing a top class sophisticated model based on mathematical calculations. The models are entirely based on the grounds dealing with asset pricing, movements of market in a particular time interval, returns from the portfolios and other related aspects. It is a typical financial engineering process where the entire financial decisions are based on the quantitative analysis medium developed via the models.
The applications in this segment include:
- Option calculation and pricing.
- Derivative calculations like interest rate, credit and exotic factors.
- Tells how to structure the interest rates via the modeling process.
- Provisioning and credit scoring.
- Solving the problems in predicting financing activities of a corporation.
- Portfolio management and optimization
- Evaluating risk and preparing a risk model.
- Dynamic Financial analysis
The problems that are tackled are dynamic and continuous. This is why the models are prepared based on complex algorithms and require computer simulations. Advanced numerical methods are involved in building the optimization models.
Equity valuation with the modeling
The financial modeling also leads to determine the value of a business so that the owner can get the right value while selling or buying one. This is the process used by the financial participants to determine the price of a business venture in order to get the right value while acquiring or selling.
The same models that are used to define the value of the business are also used to resolve disputes related to the business like gift taxations, litigation of divorce, price of business assets, agreement valuation for partners, etc.
The elements of valuations
The factors that are taught to the aspiring students are enlisted below.
-
Economic conditions
The report generally starts with the purpose of the analysis and states the scope of the business appraisal with date and the audience. The economic conditions of the region as well as that of the national in the contemporary time are clearly stated. The industrial condition on which the business valuation is done is also mentioned.
-
Financial analysis
The statement analysis in the financial background involves:
- Ratio analysis covering turnover, liquidity, profitability and many other aspects.
- Common size analysis
- Trend analysis
- Industry comparative analysis.
This vast analysis allows an analyst to find out the parameters that are actually effecting or affecting the industry at that time. The comparison is done in between the financial statements of different times of the company to check for the growth or decline rates and other trends that are hidden in them and find the pattern in the behavior of the parameters.
-
Financial statement normalization
Normalization is the processes that involve certain steps where a businessman can identify the ways to generate income that he take out from the cash flow without harming the business. There are four categories in this aspect.
- Comparability adjustment
This process is done to adjust the financial statements between the subject company and other businesses, similar in industrial background, to eliminate the differences.
- Non operating adjustments
The non operating assets are eliminated via this process from the balance sheet before the business is sold in a hypothetical condition.
- Non recurring adjustment
The events that recur or expected to recur are eliminated or adjusted so that the future expectations may not get improvised.
- Discretionary adjustment
The valuation is properly determined as per the industry standards so that the payment should not be over or under the normal level.
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Market, asset and income approaches
These three different approaches are used in the valuation using different techniques to determine the value of the business. The value is calculated as follows:
- The income based approach calculates the net present value
- The asset based value approach adds up all the value of the intrinsic parts of the business.
- The market approach compares the subject to the other ones in the same business, size and region to evaluate the proper value of the company.
The valuation models are built as per the requirement and the value is generated.
The prerequisites of the course
As mentioned earlier, the modeling and corporate valuation need in-depth knowledge in mathematics and other subjects like physics, computer science and engineering. The students who have further knowledge in operational research are more deserving. The disciplines should have a quantitative background. The bachelors can go for the degrees like Master of Quantitative Finance, Master of Computational Finance or Master of Financial Engineering. An aspirant who has completed his MBA or MSF can go for this accounting qualification side by side.
The platforms used in the modeling and valuation
There are software that exist for the exact application but most of the market is based on the spreadsheets of Microsoft Excel. The models are normally company specific. In fact the analysts have their own typically modified models to perform the specific tasks that are given. The models are developed in Excel and it has the largest share in the market overcoming Lotus 1-2-3 in the 90s.
Other than the spreadsheet preference, the intense and complex calculations are also done in custom C++ based numerical software for analysis. One of the most extensively used platforms that are based on C++ applications is MATLAB. The platform is more stable and faster than the spreadsheets and has a lot more applications to cater. This platform is considered to be the best tool for research in economics because of the features like graphical tools, debugging tools and intuitive programming.
On the other hand C++ and FORTRAN are utilized when high computational applications for cost is involved as MATLAB turn out to be slow in these cases. The simplicity of C++ and FORTRAN become quite handy in these high computational matters.
There are certain firms that develop profile specific software for the corporations. It can also be developed as an in house project which imparts better understanding of the parameters to be considered. The entire venture depends to bridge the division between the mathematical and physical sciences with finance as the result due to the division and difference was ugly in 2007-08.
Frequently asked questions
- How will I benefit from the course?
The online courses are the best for the professional and aspiring students. The flexibility is so well adjusted that the aspirants can do it as per their convenience. With diligent effort and proper learning schedule, the aspirant can add another feather in their caps and can enhance the curriculum vitae to a new level.
Beside this, the other benefits that will come with the course are:
- Application of MS Excel skills for problem solving
- Starting from the scratch, the student will earn how to build a financial model in a integrated fashion
- Performance analysis techniques will be taught to make the skill set eve more versatile
Learning these techniques via the course, a student can land up a good and prospective job in reputed platforms like investment banks, Brokerage houses, knowledge process outsourcing, corporate finance, credit analysis firms, business planning firms, etc. The opportunities are immense and the possibilities are unlimited.
- Is it applicable for novice students?
If the student is known to the financial concepts that together make the basic platform of the course then he or she will not face any kind of problem to understand the concepts of the course.
The course is developed in such a way that even a newbie can catch up fast and learn the techniques properly to enhance his or her skill set.
- What specifications do I need in my computer?
The computers of basic forms will do. The version of Excel can be 2007 or higher to get started. If the course tends to divert towards other software then they might need to install them in their computer.
- Will my queries be met properly?
The questions will be answered after every session as per convenience. The doubts a student has will be cleared. In fact there will be a homework scheduled after every session to impart a proper practical knowledge of what the student learned.
Career benefits in Financial modeling
Financial modeling has a huge prospect as the experts are required in all businesses, irrespective of size and genre. The global economy is developing day by day and every business wants to know whether they can be on the top or how they can mould the parameters in to their benefits. That is why the career in financial modeling has such a boost.
As experience will be gained the personnel will occupy the top notch places in the organization like:
- Management position in acquisitions
- Financial modeling and audit management
- Project management in Financial Model Conversion
- Analyst in Equity research
- Economic data research analyst
- Market risk management
There are so many directions and so many positions to acquire. That is why this course is the most beneficial for those who want to be a successful financial expert in the future. The salaries are above average as per the industry standards. In fact the bigger the banner the better is the salary an aspirant can expect. The entire world is moving fast and so is the economy. Hence the requirement will never go down in future as the corporations will never stop making profit.
Where do our learners come from? |
Professionals from around the world have benefited from eduCBA’s Financial Modeling and Valuation Course Courses. Some of the top places that our learners come from include New York, Dubai, San Francisco, Bay Area, New Jersey, Houston, Seattle, Toronto, London, Berlin, UAE, Chicago, UK, Hong Kong, Singapore, Australia, New Zealand, India, Bangalore, New Delhi, Mumbai, Pune, Kolkata, Hyderabad and Gurgaon among many. |
Curriculum
Module 1: Introduction on MS-Excel
1 | Excel 2010 Beginner – Overview |
2 | Getting Started – Ribbons & Quick Access Toolbar |
3 | Getting Started – Surfing Excel & HELP Function |
4 | Excel Case Study |
5 | Data Entry in Excel |
6 | Populating the Case Study in Excel |
7 | Calculations – Addition Subtract Multiply Division |
8 | Formulas – SUM MAX MIN AVERAGE |
9 | Formatting – Number Formats |
10 | Formatting – Table Formats |
11 | Updating a Calculation |
12 | Percentages & Absolute References |
13 | Conditional Formatting |
14 | IF function |
15 | COUNTIF Function |
16 | SUMIF Function |
17 | Creating Charts and Graphs |
18 | Create Pie Charts |
19 | Sorts |
20 | Filters |
21 | Pivot Tables |
22 | Freeze and Split |
23 | Presentation – Table Formats |
24 | Presentation – Indents and Formatting Charts |
25 | Printing the Worksheet |
26 | Printing – Headers and Titles |
27 | Shortcuts – Formatting and Navigation |
28 | Shortcuts – Selection, Data and Formula |
29 | Common Errors |
30 | Concluding Lecture |
Module 2: Advance Excel Tools for Financial Modeling
1 | Office Button and Paste Function |
2 | Sparklines Custom Ribbons and Screenshots |
3 | Conditional Formatting and Equation Editor |
4 | Paste Special |
5 | Logical functions IF AND OR |
6 | Arithmetic functions MAX MIN ABS etc |
7 | COUNT COUNTIF COUNTA COUNTBLANK |
8 | Cell Information ISERROR ISBLANK etc |
9 | Download all Excel and PDF files |
10 | CHOOSE Function |
11 | VLOOKUP Function |
12 | HLOOKUP Function |
13 | MATCH INDEX |
14 | Database functions DSUM DAVERAGE DCOUNT |
15 | OFFSET Function Part 1 |
16 | OFFSET Function Part 2 |
17 | FORECAST Function |
18 | Download all Excel and PDF files |
19 | One Dimensional Data Tables |
20 | Two dimensional Data Tables |
21 | Solver |
22 | Goal Seek |
23 | Download all Excel and PDF files |
24 | Array Function Introduction |
25 | Array Function Row and Columns |
26 | Array Function TRANSPOSE |
27 | Array Function FREQUENCY |
28 | Download all Excel and PDF files |
29 | PROPER UPPER LOWER LEFT RIGHT MID |
30 | FIND CLEAN REPT CONCATENATE |
31 | Download all Excel and PDF files |
32 | Pivot Tables |
33 | Pivot Table Filter Slicer |
34 | Pivot Charts |
35 | Download all Excel and PDF files |
36 | Naming a Cell and a Range |
37 | Naming Dynamic Ranges |
38 | Download all Excel and PDF files |
39 | Auditing Toolbar |
40 | Watch Window |
41 | Group Boxes and Options Button |
42 | Check Boxes |
43 | List Boxes and Combo Boxes |
44 | Scroll Bar and Spinners |
45 | Text to Columns |
46 | Grouping Tabs |
47 | SUBTOTAL Function |
48 | Hyperlinks |
49 | Data Validation |
50 | Random Numbers |
51 | Custom View |
52 | Protecting Worksheet and Workbook |
53 | Download all Excel and PDF files |
54 | Excel 2010 Sparklines |
55 | Range Charts Type 1 Part a |
56 | Range Charts Type 1 Part b |
57 | Range Charts Area Type 2 Part a |
58 | Range Charts Area Type 2 Part b |
59 | Funding Graph |
60 | Two Axis Graphs |
61 | Scenario Graphs Part 1 |
62 | Scenario Graphs Part 2 |
63 | Average Line |
64 | Bar to Pie chart |
65 | Combo Charts |
66 | Creating Histogram |
67 | Invert Negatives |
68 | Scrolling Chart part 1 |
69 | Scrolling Chart part 2 |
70 | Download all Excel and PDF files |
Module 3: Analyze and Present Data Visually in Powerpoint
1 | Introduction to Excel 2013 |
2 | Excel Chart Concepts |
3 | 02 Excel Basic Charts |
5 | 03 Fine-tuning of Charts in Excel |
6 | 04 Changing Chart Options – part 1 |
7 | 04 Changing Chart Options – part 2 |
8 | 05 Format Tab Option |
9 | Column and Line Chart |
10 | Pie Diagram |
11 | Area Chart |
12 | Doughnut, Bubble and Radar Chart |
13 | Paste Chart Data |
14 | Multiple Source Data and Table Chart |
15 | Basic Dynamic Chart |
16 | Dynamic Chart with Check boxes |
17 | Dynamic Pie Chart |
18 | Pareto Chart |
19 | Frequency Chart |
20 | Chart Filter |
21 | Gantt Chart |
22 | advanced dynamic chart |
23 | Calculator Chart |
24 | Pivot Chart |
25 | Map Chart |
Module 4: Macros & VBA
1 | VBA & Macros: Course Introduction |
2 | What are VBA & Macros? |
3 | Advantages of using VBA and Macros |
4 | Protocols in creating Macros |
5 | Creating My First Macro |
6 | VBA Environment – Project Explorer |
7 | VBA Environment – Properties |
8 | VBA Environment – Run Break Reset and Design |
9 | VBA Environment – Debug – Toggle |
10 | VBA Environment – Debug – Local Window |
11 | VBA Environment – Debug – Watch and Immediate Window |
12 | Macros with IF Condition |
13 | Macros with IF Condition (Continued) |
14 | Data Filter using VBA – Introduction |
15 | Data Filter using VBA – Macro Recording |
16 | Data Filter using VBA – Dynamic Update |
17 | Data Filter using VBA – Command Buttons |
18 | Data Filter using VBA – Command Buttons – Modifying |
19 | Data Filter using VBA – Command Buttons – Final touches |
20 | Charting using VBA – Introduction |
21 | Charting using VBA – Creating codes for charts |
22 | Charting using VBA – Recording Macro |
23 | Charting using VBA – Chart in another sheet |
24 | Charting using VBA – Dynamic Inputs |
25 | Charting using VBA – Creating Dynamic charts |
26 | Charting using VBA – Checking the codes |
27 | Userforms – Introduction |
28 | Userforms – Textbox |
29 | Userforms – Textbox Printing |
30 | Conclusion |
Module 5: Financial Statement Analysis
1 | Introduction to Accounting |
2 | Explaining and Business Cycle |
3 | Accounting for Income Statement |
4 | Accounting for Balance sheet Part 1 |
5 | Accounting for Balance sheet Part 2 |
6 | Accounting for Balance sheet Part 3 |
7 | Accounting for Cash Flows |
8 | Financial Statements Fiscal Year vs Calendar Year |
9 | Income Statement Format |
10 | Calculating Profit Margins |
11 | Non Recurring Items |
12 | Changes in Accounting Estimates |
13 | Final Remarks |
14 | Revenue Recognition Percentage Completion Completed Contract Part 1 |
15 | Revenue Recognition Percentage Completion Completed Contract Part 2 |
16 | Revenue Recognition Installment Method Cost Recovery |
17 | Downloading Colgates Income Statement part 1 |
18 | Downloading Colgates Income Statement part 2 |
19 | Analyst format of Colgates Income Statement |
20 | Formatting the Income Statement |
21 | Investigating the Nonrecurring charges |
22 | Seperating nonrecurring Items |
23 | Comparision of Margins before and after adjustments |
24 | Introduction to Balance Sheet |
25 | Introduction to Current Assets |
26 | Cash and Cash Equivalents |
27 | Cash and Cash Equivalents Colgate PG Microsoft |
28 | Accounts Receivables |
29 | Accounts Receivables Case Study part 1 |
30 | Accounts Receivables Case Study part 2 |
31 | Inventory |
32 | Inventory Case Study |
33 | Financial Reporting Standards |
34 | Inventory LCM |
35 | Inventory Valuations |
36 | Inventory Valuation Recap |
37 | Inventory Colgate |
38 | Prepaid Expenses |
39 | Current Liabilities |
40 | Other Current Assets Colgate |
41 | Current Liabilities Colgate |
42 | Long Term Assets |
43 | Depreciation Expense long lived asset |
44 | Introduction to Goodwill |
45 | Pooling Method of Accounting |
46 | Purchase Method of Accounting |
47 | Goodwill Impairment |
48 | Long Term Investments Part 1 |
49 | Long Term Investments Part 2 |
50 | Long Term Investments Example |
51 | Long Term Liabilities |
52 | Long Term Liabilities Risk Profile |
53 | Introduction to Shareholders Equity |
54 | Common Stock Par value and APIC |
55 | Treasury Stock or Shares |
56 | Retained Earnings Dividends |
57 | Additional Other Comprehensive Income |
58 | Introduction to Preference Shares |
59 | MacDonalds Shareholders Equity |
60 | Dividends Types |
61 | Cash and Property Dividend Example |
62 | Stock Dividends |
63 | Small Large Stock Dividends Example |
64 | Stock Split |
65 | Introduction to EPS |
66 | Basic EPS example |
67 | Calculating Weighted Average Shares |
68 | Effect of Stock Dividends and Stock Splits |
69 | Simple vs Complex Structures |
70 | Preferred Convertible Shares Dilution |
71 | Preferred Convertible Shares Dilution Example |
72 | Antidilutive Preferred Convertible Shares |
73 | Convertible Debt Dilution |
74 | Convertible Debt Dilution Example |
75 | Antidilutive Convertible Debt |
76 | Stock Options |
77 | Treasury Stock Method |
78 | Stock Option Dilution Example |
79 | Comprehensive Example |
80 | Introduction to Cash Flows |
81 | CFO Direct Method 1 |
82 | CFO Direct Method 2 |
83 | CFO Direct Method 3 |
84 | CFO Direct Method Example |
85 | CFO Indirect Method |
86 | CFO Indirect Method Example |
87 | CFI |
88 | CFF |
89 | Comprehensive Example CFO Direct Method 1 |
90 | Comprehensive Example CFO Direct Method 2 |
91 | Comprehensive Example CFO Indirect Method |
92 | Comprehensive Example CFI |
93 | Comprehensive Example CFF |
94 | Comprehensive Example Ending Cash Balance |
Module 6: Introduction to Valuation
1 | Corporate Valuations – Overview |
2 | DDM – Dividend Discount Model- Intrinsic Value |
3 | DDM – Dividend Discount Model- Required rate of return |
4 | DDM – Dividend Discount Model- Compare Intrinsic and Market Price |
5 | DDM – Intrinsic value of growth companies |
6 | DDM – Dividend Discount Model- Present Value |
7 | Introduction to DCF |
8 | Forecasting Income Statement EBITDA |
9 | Understanding the Working Capital |
10 | Completing the Working Capital Calculations |
11 | Linking the Free Cash Flow to Firm FCFF |
12 | Discounting the Explicit Period Cash Flows |
13 | Calculation of Terminal Values |
14 | DCF Valuation Summary |
15 | DCF Sensitivity Analysis |
16 | Understanding the Capital Structure |
17 | Options Treasury Stock Method |
18 | Options Explained |
19 | Calculation of in the money Convertibles |
20 | Calculation of in the money Stock Options |
21 | Calculation of Debt Equity Ratio |
22 | Cost of Debt Calculations |
23 | Cost of Equity Calculation |
24 | Enterprise Value Calculation Completing the Missing Links |
25 | Introduction to Relative Valuation |
26 | Relative Valuations Enterprise Value and Equity Value |
27 | Relative Valuations Comparable Comp Sheet |
28 | Understanding PE Ratio |
29 | Forward and Trailing PE |
30 | Advantages and Limitations of PE |
31 | Understanding PBV Ratio |
32 | Why PBV is used in Banks |
33 | PBV and ROE Used for Energy Sector |
34 | Understanding PCF Ratio |
35 | Why PCF used in Oil Gas Gold Real Estate |
36 | Concluding Lecture |
Module 7: Financial Modeling (Automobile)& DCF Template Creation
1 | Industry Overview |
2 | Company overview |
3 | Populating the historical values part 1 |
4 | Populating the historical values part 2 |
5 | Horizontal analysis |
6 | Vertical analysis |
7 | Ratio analysis |
8 | Revenue projections |
9 | Cost sheet projections |
10 | Working capital Projections part 1 |
11 | Working capital Projections part 2 |
12 | Capex and base equation |
13 | Depreciation schedule part 1 |
14 | Depreciation schedule part 2 |
15 | Depreciation schedule part 3 |
16 | Amortization schedule |
17 | Linking the income statement |
18 | Linking the balance sheet |
19 | Linking the cash flow statement |
20 | Shareholders equity schedule |
21 | Debt schedule part 1 |
22 | Debt schedule part 2 |
23 | Completing the missing links |
24 | Introduction to DCF valuation |
25 | FCFF cost of equity |
26 | WACC Calculations |
27 | Intrinsic value calculation |
28 | Sensitivity analysis |
29 | Introduction to Relative valuation |
30 | Relative valuation part 1 |
31 | Relative valuation part 2 |
32 | Valuation Analysis |
33 | Conclusion |
Module 8: Comparable Company Analysis – Trading & Transaction Comps
1 | Introduction to Comparable Comps |
2 | Valuation Methodologies |
3 | Why Comps? |
4 | Complement More Detailed and Complex Valuation Method |
5 | Steps of Comparable Comps |
6 | Selecting the Peers |
7 | Selecting the Multiples |
8 | Selecting the Multiples Continues |
9 | Working on Basic Share Outstanding |
10 | Diluated Share Outstanding |
11 | Cash and Cash Equivalents |
12 | Financial Average |
13 | Price by Book Value Multiple |
14 | LTM Calculation Example |
15 | Gathering the Data |
16 | Gathering the Data Continues |
17 | Drawing the comps sheet |
18 | Takeover Premium |
19 | More on Takeover Premium |
20 | REIT Valuation |
21 | REIT Valuation Continues |
22 | Common Interview Questions |
23 | Common Interview Questions Continues |
24 | Practical File |
Module 9: Comcast and Time Warner Merger Modeling Training
1 | Industry Overview 1 |
2 | Industry Overview 2 |
3 | Comcast Company Profile 1 |
4 | Comcast Company Profile 2 |
5 | Company Profile 1 |
6 | Company Profile 2 |
7 | Overview 2 |
8 | Overview 3 |
9 | Overview 4 |
10 | Transaction Assumptions 1 |
11 | Transaction Assumptions 2 and 3 |
12 | Transaction assumption 4 |
13 | Buyer and seller IS 1 |
14 | Buyer and seller IS 2 |
15 | Combining the IS 1 |
16 | Combining the IS 2 |
17 | Calculating accretion and dilution |
18 | Synergies 1 |
19 | Synergies 2 |
20 | Synergy assumptions |
21 | Synergy calculations |
22 | Combining the BS 1 |
23 | Combining the BS 2 |
24 | Calculating the adjustments 1 |
25 | Calculating the adjustments 2 |
26 | Calculating the adjustments 3 |
27 | Calculating the adjustments 4 |
28 | Adjusting the BS |
29 | Adjusting the IS |
30 | Sensitivity Analysis |
31 | Calculating the free cash flows |
32 | Summarizing the model |
Module 10: Introduction to Project Finance
1 | Learning Objective |
2 | Download all Excel and PDF files |
3 | Introduction Part 1 |
4 | Introduction Part 2 |
5 | Estimating the cost of the project |
6 | Feasibility Analysis Part 1 |
7 | Feasibility Analysis Part 2 |
8 | Means of finance |
9 | Risk analysis and Mitigation |
10 | Important Ratios in Project Finance |
11 | Introduction to Project Finance Modeling |
12 | Assumptions Project Model Steps |
13 | Assumptions Operating |
14 | Assumptions Expenses and Equity |
15 | Revenue Indicators and Assumptions |
16 | Calculating Operating Revenues |
17 | Operating Cost Tax Calculations |
18 | Calculating Project Cost |
19 | Calculating Debt Drawals |
20 | IDC and Circular Loops |
21 | Land Building and Civil Works |
22 | Misc Fixed Assets |
23 | IDC Allocation |
24 | Completing the Income Statement |
25 | Calculating Principal Repayments |
26 | Completing the Balance Sheet |
27 | Completing the Cash Flow Statements |
28 | Calculating DSCR |
29 | Calculating Project IRR |
30 | Calculating NPV |
31 | Formatting the Project Model |
32 | Sensitivity Analysis Interest Rate and IRR |
33 | Sensitivity Analysis Parking Charges and IRR |
34 | Download all Excel and PDF files |
35 | Preparing a Project Finance Report |
Module 11: LBO Modeling
1 | Overview part 1 |
2 | Overview part 2 |
3 | Transaction assumptions |
4 | Debt assumptions part 1 |
5 | Debt assumptions part 2 |
6 | Sources & uses |
7 | Consolidated Balance Sheet |
8 | Populating the Historical Values |
9 | Revenue Build up part 1 |
10 | Revenue build up part 2 |
11 | Revenue build up part 3 final |
12 | Cost sheet calculations |
13 | Working Capital Management part 1 |
14 | Ratios and Assumptions part 1 |
15 | Ratios and Assumptions part 2 |
16 | Capex-Base Equation |
17 | Calculating depreciation part 1 |
18 | Calculating depreciation part 2 |
19 | Amortization schedule |
20 | Linking the income statement |
21 | Linking the balance sheet |
22 | Linking the cash flow statement |
23 | Debt schedule part 1 |
24 | Debt schedule part 2 |
25 | Debt schedule part 3 |
26 | Debt schedule part 4 |
27 | Completing the missing links |
28 | calculating IRR part 1 |
29 | calculating IRR part 2 |
30 | Sensitivity analysis part 1 |
31 | Sensitivity analysis part 2 |
Module 12: Ratio Analysis Foundation
1 | Horizontal and Vertical Analysis |
2 | Income Statement Horizontal and Vertical Analysis Example |
3 | Balance Sheet Vertical Analysis Example |
4 | Introduction to Ratio Analysis |
5 | Activity Ratios |
6 | Activity Ratios Receivables Turnover |
7 | Activity Ratios Inventory and Payables Turnover |
8 | Activity Ratios Cash Conversion Cycle Discussion |
9 | Activity Ratios Working Capital and Fixed Asset Turnover |
10 | Liquidity Ratios |
11 | Solvency Ratios |
12 | Profitability Ratios |
13 | Comprehensive Example Activity Ratio Cash Conversion Part 1 |
14 | Comprehensive Example Activity Ratio Cash Conversion Part 2 |
15 | Comprehensive Example Activity Ratio Working Capital and Fixed Asset Turnover |
16 | Comprehensive Example Liquidity Ratios |
17 | Comprehensive Example Solvency Ratios |
18 | Comprehensive Example Profitability Ratios |
19 | ROE |
20 | ROE Example |
21 | Dividends Payout Ratio |
Module 13: Banking
1 | Balance sheet to Income statement |
2 | Balance sheet to Income statement Continued |
3 | Balance sheet to Income statement- Ratios |
4 | Securitization |
5 | Income Statement comparison |
6 | Income Statement comparison Continued |
7 | Cash Flow statement Comparison |
8 | LLR Calculations |
9 | LLR Calculations Continued |
10 | LLR calculations- Gross Charge offs |
11 | LLR calculations- Change in Collateral |
12 | Regulatory Requirements & Capital Adequacy |
13 | How well Capitalized are banks |
14 | Problems with Basel I |
15 | Basel II Norms |
16 | Basel III Norms |
17 | Introduction to Loan Loss Reserve Projections |
18 | Calculating Growth rates for Loans |
19 | Forecasting Loan Values |
20 | Loan Loss Reserve- Effect of Loans |
21 | Loan Loss Reserve- Understanding LLR |
22 | Loan Loss Reserve- Consumer Charge-offs |
23 | Loan Loss Reserve- Non-US Charge-offs & Recoveries |
24 | Charge-offs & Recoveries- Assumptions & Projections |
25 | Calculating Recoveries |
26 | Calculating Average Loan Balance |
27 | Adjusting the Charge-off formula |
28 | Projecting Cash, Deposits, Securities, Trading assets |
29 | Projecting Securities borrowed |
30 | Projecting Mortgage Servicing Rights |
31 | Projecting Balance Sheet Liabilities |
32 | Introduction to Interest bearing assets & liabilties |
33 | Interest bearing assets & liabilities continued |
34 | Calculating Interest Rate Spread |
35 | Income Statement projections- Introduction |
36 | Income Statement projections- Revenue items |
37 | Lending & Deposit fees and Asset Management |
38 | Mortgage fees & Credit Card Income |
39 | Forecasting Non-Interest Expense |
41 | Cash Flow Statement-Operating activity Continued |
42 | Cash Flow Statement-Investing Activity |
43 | Cash Flow Statement-Financing Activity |
44 | Linking the Financial Statements |
45 | Federal Funds Calculations |
46 | Capital Adequacy- Intoduction |
47 | Capital Adequacy- Tier 1 Capital |
48 | Capital Adequacy- Tier 2 Capital |
49 | Capital Adequacy- Average assets |
50 | Dividends & Stock Repurchase- Introduction |
51 | Dividends Payout Ratio |
52 | Stock Repurchase |
53 | Calculating number of Stock Repurchase |
54 | Ending, Basic and Shares outstanding |
Module 14: Real Estate
1 | Introduction |
2 | Steps of Financial Modeling |
3 | Explaining Approaches and Formatting Part 1 |
4 | Explaining Approaches and Formatting Part 2 |
5 | Punching Income Statement Part 1 |
6 | Punching Income Statement Part 2 |
7 | Punching Balance Sheet and Cash Flow Part 1 |
8 | Punching Balance Sheet and Cash Flow Part 2 |
9 | Taking Assumptions |
10 | Taking Appropriate Assumptions in Real Estate Models |
11 | Drivers and Income statement with linkage |
12 | Forecasting income statement |
13 | Balance Sheet and Cash Flow Forecasting |
14 | Ratio Analysis |
15 | How to Value a Real Estate Model |
16 | How to Value a Real Estate Model Continue |
17 | Report Writing |
18 | Investment Thesis |
19 | How to Write a Real Estate Equity Report |
Module 15: Energy
1 | Introduction to Modeling of US Oil and Gas |
2 | Overview of Industry |
3 | Various Types of Oil and Gas Producers |
4 | Environment and Supply Aspects |
5 | Industry overview in India |
6 | Understanding SEC filings |
7 | Understanding SEC filings Continues |
8 | Overview of Company |
9 | Steps of Financial Modeling |
10 | Explaining Financial Statements in Details |
11 | More on Explaining Financial Statements |
12 | Punching Historical |
13 | Punching Historical Continues |
14 | Working on Cash Flow Sheet |
15 | Cash Flow from Operating Activities |
16 | Revenue and Cost Drivers |
17 | Revenue and Cost Drivers Continues |
18 | Forecasting Financial Statements |
19 | Forecasting Financial Statements Continues |
20 | Working on Debt |
21 | Working on Drivers Sheet |
22 | More on Drivers Sheet |
23 | Linking the Balance Sheet |
24 | Calculation of Free Cash Flow |
25 | Calculating WACC |
26 | Explaining DCF Method |
27 | Explaining Relative Valuation |
28 | Calculation Ratios |
29 | Calculation Ratios Continues |
30 | Calculating Price to Share Ratio |
Module 16: Capital Goods
1 | Introduction to Praj Industries Ltd |
2 | How Company Makes Ethanol |
3 | Ethanol Industry Overview |
4 | Ethanol Segment |
5 | Learn Emerging Market |
6 | Punching Qtrly Consol Income Statement (IS) |
7 | Management Highlights |
8 | Quarterly Income Statement Analysis |
9 | Key Developments |
10 | Punching Quarterly Standalone Income Statement |
11 | Punching Quarterly Standalone Income Statement Continues |
12 | Linkages of Console Yearly Income |
13 | More on Console Yearly Income Statement |
14 | Calculating Total Revenue |
15 | Punching Consolidated Balance Sheet items |
16 | Punching Consolidated Balance Sheet items Continues |
17 | Punching Consolidated Cash Flow Items |
18 | Projecting Actual FY16 Cash Flow without Annual Report |
19 | Projections of Petrol Demand in India |
20 | Petroleum Planning and Analysis Cell |
21 | Projections of Ethanol Demand |
22 | Incremental Order Flows for EPC Players |
23 | Sensitivity Analysis for Overall Order Flows |
24 | Projection of Brewery Order Flows |
25 | Console Assumption Sheet |
26 | Projection of Emerging Market Order Flows |
27 | Projections of Revenues |
28 | More on Projections of Revenues |
29 | Projection of Operating Cost |
30 | Projection of Operating Cost Continues |
31 | Operating Margins |
32 | Linking Operating Margins |
33 | How to Calculate Forex Gain or Loss |
34 | How to Calculate Forex Gain or Loss Continues |
35 | Projection of Other Income |
36 | Projection of Depreciation |
37 | Projection of Amortization |
38 | Projection of Finance Cost |
39 | Projection other Income Statement Items |
40 | Projection of Balance Sheet Items |
41 | Projection of Balance Sheet Items Continues |
42 | Calculating Trade Payable |
43 | Projection of Cash Flow Statement |
44 | Projection of Cash Flow Statement Continues |
45 | How to Draw 1 Year Rolling PE Chart |
46 | How to Draw 1 Year Rolling PE Chart Continues |
47 | How to Draw 2 year Rolling PE Chart |
48 | Preparation of Summary Sheet |
49 | Preparation of Summary Sheet Continue |
50 | Equity Research of Capital Goods Industry |
Module 17: Media
1 | Media Sector 1 |
2 | Media Sector 2 |
3 | Media Sector 3 |
4 | Media Sector 4 |
5 | Introduction of FM |
6 | Revenue Build Up Schedule Part 1 |
7 | Revenue Build Up Schedule Part 2 |
8 | Cost Sheet Schedule Cost Sheet final |
9 | Working Capital Schedule Part 1 |
10 | Working Capital Schedule Part 2 |
11 | Depreciation Schedule Part 1 |
12 | Depreciation Schedule Part 2 |
13 | Depreciation Schedule Part 3 |
14 | Amortisation Schedule Part 1 |
15 | Amortisation Schedule Part 2 |
16 | Income Statement |
17 | Shareholders Equity Schedule |
18 | Balance Sheet |
19 | Cash Flow Statement |
20 | Debt Schedule Part 1 |
21 | Debt Schedule Part 2 |
22 | Horizontal and Vertical analysis |
23 | Ratio Analysis Part 1 |
24 | Ratio Analysis Part 2 |
25 | DCF Valuation Part 1 |
26 | DCF Valuation Part 2 |
27 | DCF Valuation Part 3 |
28 | DCF Valuation Part 4 |
29 | Relative Valuation Part 1 |
30 | Relative Valuation Part 2 |
Module 18: Telecom
1 | Industry Overview 1 |
2 | Key Market Players And Their Profile |
3 | Company profile |
4 | Populating the Historicals |
5 | Horizontal and Vertical Analysis |
6 | Ratio analysis |
7 | Revenue Build up |
8 | Cost Sheet |
9 | Depreciation Schedule Part 1 |
10 | Depreciation Schedule Part 2 |
11 | Depreciation Schedule Part 3 |
12 | Amortization schedule |
13 | Working capital Management |
14 | Shareholders Equity Schedule |
15 | Debt Schedule Part 1 |
16 | Debt Schedule Part 2 |
17 | Completing the financial statements |
18 | EPS calculations and Formatting |
19 | Summarizing the Model |
20 | Introduction to DCF and FCFF Calculation |
21 | WACC Calculations |
22 | Calculating the target price |
23 | Sensitivity Analysis |
24 | Calculating the PE |
25 | Calculating EV by EBITDA |
26 | Recommendation Report |
Module 19: Retail
1 | Populating the Historical Values |
2 | Revenue Build up part 1 |
3 | Revenue build up part 2 |
4 | Revenue build up part 3 final |
5 | Cost sheet calculations |
6 | Working capital management part 1 |
7 | Ratios and Assumptions part 1 |
8 | Ratios and Assumptions part 2 |
9 | Capex-Base Equation |
10 | Depreciation schedule part 1 |
11 | Calculating depreciation part 2 |
12 | Amortization schedule |
13 | Linking the income statement |
14 | Linking the balance sheet |
15 | Linking the cash flow statement |
16 | Shareholders equity schedule |
17 | Debt schedule part 1 |
18 | Debt schedule part 2 |
19 | Debt schedule part 3 |
20 | Debt schedule part 4 |
21 | Completing the missing links |
Module 20: Healthcare
1 | Introduction to Claris Lifescience |
2 | Financial Performance |
3 | Difference Between Injectables and Infusion |
4 | Competitive Dynamics of the Industry |
5 | Financial Statement Introduction |
6 | Financial Statement Introduction Continue |
7 | Quarterly Income Statement Analysis |
8 | Quarterly Income Statement Analysis Continue |
9 | Linkages of Yearly Income Statement from Qtrly Data |
10 | Understanding About the Balance Sheet Items |
11 | Understanding About the Balance Sheet Items Continue |
12 | Understanding on Cash flow Statement |
13 | Understanding on Cash flow statement Continue |
14 | How to Create Assumption Sheet? |
15 | Projection of Segmental Revenue |
16 | Projection of EBITDA and Operational Cost |
17 | Projection of EBITDA and Operational Cost Continue |
18 | Projection of Other Income |
19 | Calculating Depreciation |
20 | Calculating Projection of Amortization |
21 | Projection of Finance Cost |
22 | Continue on Finance Cost |
23 | Projection of Tax Rate and Completion |
24 | Continue on Tax Rate Completion |
25 | Projection of Balance Sheet Items |
26 | Projection of Cash Flow Statement |
27 | How to Calculate Beta of Stock in MS Excel |
28 | Calculation of WACC and Cost of Equity |
29 | Valuation of Share Based on FCFF |
30 | Equity Value Per Share Calculation |
31 | Calculation First and Second FWD PE Multiple |
32 | Introduction to Pharmaceutical sector |
33 | Importance of Pharmaceutical Company |
34 | Forecasting of Key Line Items |
35 | What is API ? |
36 | What is Generic ? |
37 | Pharmaceutical Model of Arvinda Pharma Limited |
38 | Consolidated Balance Sheet |
39 | Consolidated Statement of Profit and Loss |
40 | Punching Balance Sheet |
41 | Punching Cash Flow Statement |
42 | Punching Cash Flow Statement Continue |
43 | Forecasting Revenue |
44 | Forecasting Revenue Continue |
45 | Forecasting Key Cost Items |
46 | Forecasting Key Cost Items Continue |
47 | Forecasting FA and Depreciation |
48 | Forecasting FA and Depreciation Continue |
49 | PBT Forecast |
50 | PBT Forecast Continue |
51 | Profit Before Tax |
52 | More on Profit Before Tax |
53 | Forecasting of Balance Sheet Key Items |
54 | Forecasting Trade Payable |
55 | Forecasting Investors and Receivable |
56 | Linking Balance Sheet and Cash Flow Part 1 |
57 | Linking Balance Sheet and Cash Flow Part 2 |
58 | Linking Balance Sheet and Cash Flow Part 3 |
59 | Linking Balance Sheet and Cash Flow Part 4 |
60 | Ratio Analysis |
61 | More on Ratio Analysis |
62 | Leverage Ratio |
63 | Valuation and Devaluation Ratios |
64 | Calculate WCC |
65 | Calculate FCF |
66 | Relative valuation |
67 | Valuation Ratios and Recommendation on Stock |
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