Build a Trading Comps Valuation Model
What you'll learn
- At course completion, you will have developed a comprehensive "Wall Street quality" Trading Comps model from scratch.
Requirements
- Wall Street Prep's Financial Statement Modeling Course, an introductory knowledge of accounting and corporate finance, as well as proficiency in Excel.
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
Who this course is for:
- Investment banking professionals
- Students seeking a lucrative finance career
Course content
- Preview00:41
- Preview00:42
- Preview13:26
- 05:18Trading Comps Overview
- 07:46Reading Comps FAQs & Common Misconceptions
- 08:01PE & PEG Ratios
- 10:45P/B. EV/Rev, EV/EBIT, EV/EBITDA & Industry Multiples
- 08:28Comps Process & Simple Exercise
Instructor
![Wall Street Prep](data:image/svg+xml,%3Csvg xmlns="http://www.w3.org/2000/svg" viewBox="0 0 64 64"%3E%3C/svg%3E){kind=avatar}
- 4.6 Instructor Rating
- 1,206 Reviews
- 7,708 Students
- 6 Courses
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.