
Build financial models to evaluate rate of return, enterprise value, and exit multiples in mergers and acquisitions. Assess synergies, due diligence, and capital structure, including debt, equity, and convertible instruments.
Learn to calculate cost of sales (cogs) and classify expenses using vertical analysis to express costs as a share of revenue, and compare forecasting options such as rolling averages.
Link revenues and expenses to build the income statement for a DCF valuation, calculate gross profit and EBITDA, and analyze gross profit margins and EBITDA margins for forecasting.
Forecast depreciation using straight-line methods for gross PPE, linking old assets (ten-year life) and new CapEx (twelve-year life) to derive accumulated and net values on the balance sheet.
Compute depreciation with a waterfall model in Excel, linking capex depreciation to the income statement and balance sheet, and apply amortization for intangible assets and goodwill.
Link balance sheet items—receivables, inventory, and other current assets, and payables—to non-cash current assets and current liabilities, then apply turnover ratios and days analyses to forecast working capital.
Define and model the cash conversion cycle by calculating receivables, inventory, and payables days, linking assumptions in a 365-day framework to show CCC and cycles per year.
Forecast working capital balances using turnover ratios and days-based assumptions for receivables, inventory, and payables. Derive receivables and inventory from sales and cost of sales, and justify trends qualitatively.
Build a working capital schedule by linking other current assets and accrued liabilities to net sales and cost of sales, using percentage assumptions and backward calculations for cash flow linking.
Learn how treasury stock reduces outstanding shares, affects EPS, and why companies repurchase shares for ESOPs and defense, plus handling circular references with iterative calculations in Excel.
Forecast debt by linking dividends and stock repurchase to cash outflows, compute cash available after minimum cash balance, and model long term debt payments and revolving credit with Excel formulas.
Calculate interest expense on revolving and long-term debt using average outstanding balances, apply min function to debt payments, and estimate interest income from cash and securities with an effective rate.
Link the main statements—income, balance sheet, and cash flows—across operating, investing, and financing activities in a DCF model, updating debt forecasts, interest income/expense, dividends, and equity changes; resolve circular references.
Tidy a DCF valuation dashboard by removing irrelevant rows and reshuffling cash flows, and apply clear color conventions for inputs, formulas, off-sheet references, and historical data.
Calculate free cash flows and determine the discount rate for a dcf model, using a basic income statement to show ebitda, ebit, taxes, and depreciation and amortization.
Explore backward calculation of free cash flow to the firm, adjusting net income, depreciation, capital spending, and working capital to derive FCFF and FCFE after debt repayments.
Build a dcf valuation model by calculating free cash flows from ebit, nopat, depreciation, capex, and working capital, then discount them using cost of equity and debt derived from capm.
Compute WACC for a DCF by deriving cost of equity from beta with risk-free rate and market risk premium, and after-tax cost of debt from historical tax rate.
Learn to compute the weighted average cost of capital by linking levered beta to CAPM, combining cost of debt, and weighting by debt proportions with Excel.
Compute the NPV of explicit forecasted cash flows using the weighted average cost of capital as the discount rate, and apply Excel’s PV and NPV functions to illustrate present value.
Learn to use a discounted cash flow valuation to forecast share price with enterprise value, adjusted value, npv analysis, and sensitivity analysis against intrinsic value and market price.
Build a dcf valuation model and test it with Excel data tables, showing how changes in wacc and perpetual growth rate impact share price through a sensitivity analysis.
Use ev to revenue, ev to ebitda, and p/e multiples to estimate share price, benchmark against industry, and compute enterprise and equity values by adjusting for debt, cash, and securities.
Embark on a comprehensive financial modeling journey with the course "Build a DCF Valuation Model - Financial Modeling". Explore the intricacies of corporate finance, unraveling the core concepts that drive strategic decision-making. This course not only equips you with the skills to build robust financial models but also provides a practical understanding of applying these models in real-world scenarios.
Course Structure:
Introduction:
Course Overview: Get a glimpse of what lies ahead and an introduction to the corporate giant, Big Books Corp.
Revenue & Cost Projections:
Segment Wise Revenue: Dive into the art of dissecting revenue by segments.
Cost Projections: Master the calculation of cost of sales and SG&A expenses, linking revenue and expenses seamlessly.
Depreciation & Amortization Schedule:
Understanding Capital Expenditure: Explore the crucial components of depreciation and amortization, vital for constructing a precise cash flow statement.
Working Capital Schedule:
Cash Conversion Cycle: Uncover the dynamics of working capital, projecting balances and understanding the cash conversion cycle.
Equity & Debt Schedule:
Forecasting Debt: Navigate through forecasting share repurchases, analyzing shares outstanding, and projecting debt-related metrics.
DCF Valuation:
Free Cash Flow & WACC: Delve into the intricacies of discounted cash flow valuation, covering free cash flow, WACC calculation, and forecasting share prices.
Relative Valuation:
Comparative Metrics: Gain insights into relative valuation metrics like EV to Revenue and EV to EBITDA, offering a comparative perspective.
Learning Outcome: Upon completion, you'll wield the skills to construct robust financial models, make informed financial decisions, and navigate the complex landscape of corporate finance with confidence. Elevate your financial modeling expertise and apply it practically in diverse business scenarios.
One of the valuation methods Discounted Cash Flows (DCF) is used to determine the worth of investing. This training is dedicated to learning about this most commonly used DCF valuation techniques wherein you shall understand its techniques right from scratch on a financial model. With the help of practical application and examples you shall understand different valuation methods available to investors, what is DCF? , where is it used, benefits of using DCF - comparability with other methods, projecting cash flows, determining levered and unlevered beta, calculating cost of equity, calculating after tax cost of debt, calculating WACC, calculating a terminal value, discounting the cash flows at WACC, finding the per share intrinsic value, concluding the analysis, creating share price sensitivity tables and constructing a football field valuation.
By joining this training you would benefit by:
Learning how to do DCF valuations on companies financial statements
Learning how to find the per share intrinsic value
DCF Valuation techniques.
This training is dedicated to learning about this most commonly used DCF valuation techniques wherein you shall understand its techniques right from scratch on a financial model of Big Books Corp. Any one interested in a career in Finance and Financial Analyst Industry, This course is a must. Many students and professionals assume that their chances of making an Analyst career in Finance Industry are bleak if they are not from the top tier colleges. However, we have seen industry trends where skilled students and professionals from lesser known universities and companies making into big financial firms and organizations. Universities are very limited in their curriculum as they are mostly restricted to focus on theoretical aspects than actual practical know-how. Financial Analyst Training involves analyzing companies’ financials in detailed manner. Analysis is conducted through a composite of financial records, news and interviews with company insiders. It is also known as securities research or Fundamental Analysis. It consist of the sell side research i.e. when research done by analyst are provided to their clients and also buy side research i.e. when analyst do research and use it to invest their firm’s money. The work within Financial Analysis mainly revolves around Financial Modeling Techniques, forecasting, valuations like DCF and Relative Valuations (estimate growth rate and valuations for companies in future). Financial modeling involves designing and building calculations to assist in decision-making. Learning how to build models with complexity in an accurate, robust, and transparent way is an essential skill in the modern workplace. The goal isn’t to teach you how to memorize Excel Models but to actually learn the skills to generate your own reports with a clear idea of how to structure a financial report so it has maximum flexibility. And by the end of this course, you will learn how to build effective, robust, flexible financial models. In this you will learn the following:
Valuations in details
Financial Modeling where in we will study in details the balance sheet, income statements, cash flow, projections etc along with the financial model in practical.