Financial Modeling & Fundamental Analysis

This lecture explains listing a company on public exchanges, highlighting the two major Indian exchanges BSE and NSE, and how listings enable trading and transparency for investors.

Explore how the NSE and BSE govern stock trading, volumes, market share, and liquidity while tracking key indices like Sensex and Nifty 50.

The lecture compares changing prices to individual valuations in markets and explains how market cap and free float govern the Nifty 50 index, emphasizing liquidity and representativeness.

Represents India's top 50 companies across 13 sectors. Shows Nifty 50 covers about 67 percent of market cap and illustrates sector contributions for analysis.

Master Excel basics from opening and saving workbooks to copying, pasting, and using basic functions and formatting tools, then explore intermediate lookups, data tools, and macros for financial modeling.

Learn how to work with relative and absolute cell references in Excel, using dollar signs to fix values, copy-paste behavior, and basic formatting to build reliable financial models.

Master excel intermediate functions such as sum, average, max, min, and count, and use end of month calculations, concatenate, and data formatting to analyze revenues and costs.

Explore the if function as a logical tool for financial modeling, using true or false tests, and combining and/or conditions to calculate bonuses, salaries, and conditional outcomes.

Explore calculating present value, future value, and net present value using discount rates, cash flows, and IRR concepts, with basics versus Excel formulas.

Learn how amortization schedules detail each monthly loan payment, breaking it into interest and principal and tracking the balance, using PMT, IPMT, and PPMT to compute EMI.

Explore auditing formulas, data validation, and what-if analysis in Excel to test scenarios, trace precedents, validate inputs, and assess present value under varying discount rates.

Protect workbook data with open and modify password options, and manage access. Use text-to-column to split names, then build pivot-like tables with filters, rows, columns, and values for analysis.

Explore how macros accelerate financial modeling by recording formatting and present value calculations at 15, 18, 20, and 25 percent, and by building quick access macro buttons.

Learn to build a financial model from the ground up by identifying data sources, mastering profit and loss, balance sheet, and cash flow, and forecasting with company and sector analysis.

Identify reliable information sources for financial modeling, distinguishing informal opinions from formal company disclosures, annual reports, and management discussion and analysis to inform fundamental analysis.

Explain the P&L account as a measure of corporate performance, detailing revenue, expenses, accrual and matching concepts, operating and non-operating income, finance costs, depreciation, taxes, and net profit after tax.

Explore how a balance sheet classifies assets and liabilities, explains current versus non-current items, and connects equity, retained earnings, and borrowings to financing and asset use.

Explore deferred tax and timing differences between accounting books and income tax, including current tax and how depreciation and research and development expenses create future tax assets or liabilities.

Explore minority interest and controlling stakes in subsidiaries, and learn how consolidated statements reflect 51 percent ownership with 49 percent minority shareholders on the balance sheet.

Learn the differences between joint ventures, subsidiaries, and associate companies, focusing on control versus significant influence, minority interests, and how these entities are reflected in consolidation and balance sheets.

Explain other comprehensive income and its items, and show how basic and diluted earnings per share are calculated from weighted average equity shares, including dilutive instruments.

Learn to build a manufacturing company financial model using five years of history (2015–2019), identify key drivers, production capacity and revenue segments, and leverage management discussion and analysis for forecasting.

Explore how to construct and analyze a cash flow statement by linking after-tax profit, depreciation, non-cash items, and working capital changes across operating, investing, and financing activities.

Learn to create common size statements by expressing balance sheet items as a percentage of total assets and income items as a percentage of sales, using vertical and horizontal analyses.

Master ratio analysis by turning P&L and balance sheet figures into meaningful business insights. Explore liquidity, solvency, activity, and profitability ratios and their role in evaluating financial health.

Explore how activity ratios assess a firm's operating efficiency, turning receivables, inventory, and payables into cash and sales, with emphasis on turnover, days outstanding, and working capital.

Explore profitability ratios, including net profit margin, operating profit margin, and ebitda, and learn how DuPont analysis breaks returns into margin, asset turnover, and financial leverage to return on equity.

Perform competitor analysis by examining two steel competitors, build financial statements, and assess risk, solvency, liquidity, efficiency, and leverage across three businesses to forecast competitive positions.

Learn to analyze the steel sector’s size, production, regulations, and risks using annual reports and industry associations, then craft a concise two-to-three page sector report with forecasting.

Forecast sales volumes by linking industry growth to company growth, estimate units and selling price for the next three years, and apply historical relationships to project revenue.

Calculate the average sale price by dividing total sales by units, then forecast revenues using historical relationships and estimated volume.

Forecast sales by extracting division volumes from the annual report, calculate industry and company growth, set volume growth assumptions, estimate selling prices, and derive three-year revenue projections.

Forecast the profit and loss statement by applying sales-based percentages to each line item, averaging margins, and linking to the balance sheet while calculating taxes, depreciation, and finance costs.

Develop a fixed asset and debt schedule to forecast the balance sheet, using capex, depreciation, and percentage-of-sales to set opening and closing assets and financing costs.

Learn balance sheet forecasting using the percentage of sales approach for assets. Forecast inventories, receivables, investments, loans, and equity and liabilities across years.

Develop a debt schedule and balance sheet adjustments by linking cash flow, forecasting free cash flow, and analyzing minimum liquidity to plan debt repayment and financing costs.

Value a company by deriving its intrinsic value from three-year forecasts using the dividend distribution model (Gordon growth model), cost of equity, and future dividends.

Calculate the cost of equity by estimating the required return from historical market returns and a risk-free rate, using the stock's beta (systematic risk) from market-stock return regression.

This lecture shows how to calculate final price per share using a dividend discount model, discounting projected dividends and terminal value to derive intrinsic value.

Explains the free cash flow model and its difference from the dividend distribution approach by tracing cash from operations, through working capital and investments, to value equity and debt holders.

Explore sensitivity analysis to map optimistic and pessimistic values around intrinsic and market price, test growth rate and discount assumptions, and derive margin of safety and upside in relative valuation.

Compare a company to peers and history using popular relative valuations. Use ratios like price-to-earnings, price-to-book, price-to-sales, and enterprise value metrics such as EV/EBITDA, with forward and trailing earnings.