Build a Trading Comps Valuation Model

Learn to build and analyze the single most common model in investment banking. Includes a complete comps model in Excel.
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617 students enrolled
Instructed by Wall Street Prep Business / Finance
$50
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  • Lectures 55
  • Contents Video: 7 hours
    Other: 1 min
  • Skill Level All Levels
  • Languages English
  • Includes Lifetime access
    30 day money back guarantee!
    Available on iOS and Android
    Certificate of Completion
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About This Course

Published 10/2014 English

Course Description

"Comps" analysis is the most widely used valuation methodology and an essential piece of the core valuation skill set of investment bankers and finance professionals. In this course, you will learn how to select and "scrub" comparables, pick the right multiples, and build complete comps models in Excel from scratch, using a real case study the exact way it's done ay financial institutions.

Lessons include:

  • Learn to select appropriate comparable companies by evaluating operational, financial, size, and other similarities
  • Set evaluation benchmarks & select comparable companies
  • Gather appropriate financial history and projections
  • Normalizing operating results and calculating LTM operating results to reflect nonrecurring charges and stock option expenses
  • Standardize various expense classifications including FIFO to LIFO inventory accounting
  • Calculate shares outstanding using the treasury stock method
  • Input financial data & calculate and interpret financial and market ratios
  • Presenting trading comps by structuring output schedule
  • Selecting key valuation multiples using the VLOOKUP function and generating multiple tables

What are the requirements?

  • Wall Street Prep's Financial Statement Modeling Course, an introductory knowledge of accounting and corporate finance, as well as proficiency in Excel.

What am I going to get from this course?

  • At course completion, you will have developed a comprehensive "Wall Street quality" Trading Comps model from scratch.

What is the target audience?

  • Investment banking professionals
  • Students seeking a lucrative finance career

What you get with this course?

Not for you? No problem.
30 day money back guarantee.

Forever yours.
Lifetime access.

Learn on the go.
Desktop, iOS and Android.

Get rewarded.
Certificate of completion.

Curriculum

Section 1: Trading Comps Modeling Introduction
A Note on Course Materials
Preview
Article
Introduction
Preview
00:42
Valuation Overview
Preview
13:26
Trading Comps Overview
05:18
Reading Comps FAQs & Common Misconceptions
07:46
PE & PEG Ratios
08:01
P/B. EV/Rev, EV/EBIT, EV/EBITDA & Industry Multiples
10:45
Comps Process & Simple Exercise
08:28
Section 2: Spreading EXTR
Comps Screening
08:16
Extreme Networks & Peer Group
07:01
Comps Template Preview
09:54
Modeling Exercise: Inputting General Info
09:45
Shares Outstanding Overview
08:40
Shares Outstanding - Options
07:02
Shares Outstanding - Splits & Dual Classes
03:46
Shares Outstanding - Convertible Preferred Stock
11:27
Shares Outstanding - Convertible Debt
00:55
Shares Outstanding - Convertible Exercise
11:12
Shares Outstanding - Restricted Stock
02:48
Modeling Exercise: Inputting Shares Data
06:04
Modeling Exercise: Inputting Shares Data, Part 2
07:25
Modeling Exercise: Inputting Historicals
03:08
Modeling Exercise: Inputting Historicals, Part 2
04:56
Modeling Exercise: Non-GAAP Adjustments
11:10
Modeling Exercise: Non-GAAP Adjustments, Part 2
12:33
Modeling Exercise: Non-GAAP Adjustments, Part 3
08:21
Net Debt Concepts
05:06
Modeling Exercise: Non-GAAP Adjustments, Part 4
04:30
Modeling Exercise: Net Debt & Estimates
07:30
Calendarization Concepts
02:44
Modeling Exercise: Calendarization
11:12
Section 3: Spreading BRCD
Modeling Exercise: Inputting General & Shares Data
09:22
Modeling Exercise: Inputting Financials
05:23
Modeling Exercise: Non-GAAP Adjustments, Part 1
13:20
Modeling Exercise: Non-GAAP Adjustments, Part 2
08:37
Modeling Exercise: Calendarization, Net Debt & Estimates
06:20
Section 4: Spreading JNPR
Modeling Exercise: Inputting General & Shares Data
09:45
Modeling Exercise: Inputting Financials & Non-GAAP Adjustments
11:25
Modeling Exercise: Calendarization, Net Debt & Estimates
04:34
Section 5: Spreading CSCO
Modeling Exercise: Inputting General & Shares Data
06:42
Modeling Exercise: Inputting Financials & Non-GAAP Adjustments
09:05
Modeling Exercise: Net Debt & Estimates
06:14
Section 6: Comps Output
Modeling a Dynamic Comps Output Sheet, Part 1
17:40
Modeling a Dynamic Comps Output Sheet, Part 2
09:18
Modeling a Dynamic Comps Output Sheet, Part 3
06:55
Building a Football Field Matrix
05:32
Section 7: Additional Comps Exercises, ARUN & FFIV
Exercise Introduction
00:42
Exercise Review
12:29
Conclusion
00:20
Section 8: Appendix - GAAP to Non-GAAP Adjustments
Introduction & Stock Based Compensation
05:46
Unusual or Infrequent Items
04:30
Non-GAAP Presentation on Financial Statements
04:16
Normalizing Earnings Exercise, Part 1
07:35
Normalizing Earnings Exercise, Part 2
11:47
Nonrecurring Items Overview
09:25

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Instructor Biography

Wall Street Prep, The global leaders in financial training

Wall Street Prep was founded in 2003 by a group of JP Morgan investment bankers with a simple goal: To make the “investment banking skill-set” available to anyone who wants to learn it. Each year, our innovative courses are used by over 5,000 professionals and students. Over 150 investment banks, private equity firms, and investment funds use Wall Street Prep to train new and experienced analysts and associates. In addition, over 50 business schools, including Wharton, Oxford, INSEAD, LSE, Kellogg, Booth, MIT, and Cornell use Wall Street Prep to better prepare their students for careers in finance.

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