Explore essential Excel functions such as sumif, vlookup, hlookup, index match, and countif to analyze large datasets, then visualize insights with line, pie, and column charts and conditional formatting.

Download the excel template provided with this module and follow along with the instructor’s illustrations. Practice the module by applying the illustrations in the attached excel spreadsheet.

examine basic excel functions using India's GDP dataset in a provided template, exploring quarterly by-industry figures from 2004-05 to 2014-15 to extract and present insights.

Using the sumif function in Excel, aggregate sector GDP by year with a single, copyable formula and frozen ranges across years (2004-05 to 2013-14) and sectors.

Compute sector growth rates in the Indian GDP from 2005 to 2014 using a simple percentage change formula in a spreadsheet, including agriculture, and aggregate data with the SUMIF function.

Extracts India's GDP and GDP growth rate for a chosen year using VLOOKUP in Excel, illustrating lookup value, table array, column index, and exact match.

Explore how HLOOKUP, the horizontal counterpart to VLOOKUP, retrieves sector-specific GDP and the percentage increase for 2012-13 using a table array, row index, and exact-match lookup.

Learn how index and match dynamically retrieve GDP figures and growth rates by year and sector, surpassing vlookup and hlookup limitations.

Demonstrate using if, countif, and countifs in Excel to evaluate India's GDP growth being positive across 2005–14, counting years with positive GDP and mining sector growth via SUMIF and COUNTIFS.

Learn to build a line chart in Excel to visualize sector growth over years, using transpose, sumif data layout, and vlookup for sector selection, with chart formatting.

Create a dynamic Excel pie chart showing sectoral contributions to India's GDP for a selected year, using index and match to pull data and display percentages with polished formatting.

Explore how to visualize a sector's absolute GDP contribution from India with a column chart in Excel, and overlay year-on-year growth on a secondary axis for clear comparison.

Learn to use Excel's stacked chart to display multi-year sector contributions to India's GDP, using a 100% stacked column chart to show percentage shares.

Learn to build a heat map in Excel with conditional formatting. Color-code high, medium, and low GDP growth using 8%, 5–8%, and below 5% thresholds in green, orange, and red.

Explore the basics of financial accounting, define accounting and its day‑to‑day applications, examine the need for accounting, learn the basic financial statements, and practice recording transactions to analyze a business.

Record all financial transactions as simple bookkeeping that captures what you give and receive. Produce financial statements for regulatory, tax purposes, and to reveal profits and costs.

Explore the income statement structure from revenues to EBITDA, depreciation, EBIT, interest, and profit after taxes, highlighting direct and indirect costs.

Explore the balance sheet by identifying assets and liabilities, including fixed assets, inventory, accounts receivable, and cash. Show how current and long-term liabilities, plus shareholders' equity, finance the assets.

Learn how to record transactions in income statements and balance sheets by tracking what the business gave and received, using an ice cream shop example.

Record the first transaction by applying 2000 cash to the ice cream shop’s balance sheet, increasing the asset cash and recognizing 2000 in shareholders equity as owner contributed capital.

Assess the capital requirement at 10,000, add 2,000 shareholder equity, and borrow 8,000 as long-term debt to raise cash to 10,000 and record the new liability.

Record this third transaction by purchasing fixed assets—a mall space and ice cream equipment—with cash, and update the balance sheet by reducing cash and increasing land and plant assets.

Illustrate recording the fourth transaction: classify $350 direct costs and $150 indirect costs for ice cream business, and update cash and accounts payable on the income statement and balance sheet.

Fifth transaction illustrates a $1,000 sale split: $500 cash and $500 credit, awaiting bank clearance, updating revenues and ebitda to $500 and recording $500 cash and $500 accounts receivable.

Record a 5% non-cash depreciation charge on machinery costing 2500, and yield ebit of 375 while reducing the balance sheet machinery asset to 2375.

Illustrate recording $80 interest expense on a $8,000 loan, lowering EBIT to 295 and turning into EBT, while increasing long-term debt to 8,080 with no cash change.

Analyze transaction 8, where borrowing $2000 interest-free funds to stock ice and milk increases inventory and records a $2000 short-term debt on the balance sheet, with no interest cost.

Calculate 40 percent tax on earnings before tax of 295, record 118 tax payment, derive net profits 177, and reflect cash and balance sheet effects from 1750 to 1622.

Record the final transaction by transferring after-tax profits to shareholder equity, boosting net worth, and balancing the balance sheet by recording profits across the income statement and balance sheet.

Learn to compare company performance using operating and financial performance metrics, through a scorecard approach that explains how to calculate and apply these metrics to income statements and balance sheets.

Learn to assess a company's health with financial performance analysis, perform a diagnostic health checkup, and use scorecard metrics to compare performance across years for management, investors, and employees.

Download the Excel template provided with this module and practice along with the instructor to gain hands-on experience using the same file used for illustrations.

Identify the best performing telecom company among four disguised peers (Alpha, Beta, Gamma, Teeta) by analyzing income statement and balance sheet data for 2011–16 in the provided Excel spreadsheet.

Measure a company's performance from its income statement and balance sheet by examining operating health—the core business. Assess financing health—the capital structure and liquidity—to complete the framework.

Assess operating health with profitability, capital efficiency, and growth metrics (EBIT/EBITDA margins, revenue per fixed asset, revenue growth) and financing health via debt ratios and liquidity measures.

Compute year-over-year revenue growth and operating metrics for Alpha from 2012–2016, including EBIT and EBITDA margins, and the revenue to fixed assets capital efficiency ratio.

Compute Alpha's financial strength metrics from 2012 to 2016, including current asset to current liability ratio, EBITDA coverage ratio, debt to EBITDA ratio, and debt to market capitalization ratio.

Compute Beta's revenue growth, EBIT and EBITDA margins, revenue to fixed assets ratio, current assets to current liabilities, EBITDA coverage, debt to EBITDA, and debt to market value ratios.

Learn to compute eight operating and financing metrics for four companies by applying the same method used for Alpha and Beta to Gamma and Theta, and verify your results.

Compute the 2012-2016 averages of each metric to compare company performance. Use Excel's average function and paste special to copy formulas without altering formatting, enabling a cross-company scorecard.

Translate EBIT margins, EBITDA margins, revenue to assets, and revenue growth for four companies into a column graph to compare operating and financing health across Alpha, Beta, Gamma, and Theta.

Create a color coded scorecard to rank four companies on eight metrics, including ebit margins, ebitda margins, revenue to fixed assets, and revenue growth, using pink, blue, violet, and orange.

Rank financing health by evaluating debt to market capitalization, debt to EBITDA, current assets to liabilities, and EBITDA to interest using a color-coded scorecard for Alpha, Beta, Gamma, and Theta.

Evaluate a four-company scorecard by comparing EBIT margins, EBITDA margins, debt to market capitalization, debt to EBITDA, revenue growth, and capital efficiency to identify Alpha as the top performer.

Compare the performance of different companies using an operating and financial performance framework. Apply metrics like ebit margins, revenue growth, debt ratios, and a color-coded scorecard to rank firms.

Learn to forecast forward-looking financial statements for financial analysts using historical ratios and trend analysis, building a dynamic integrated model that links the income statement, balance sheet, and cash flow.

Explore an illustration of a large publicly listed U.S. retailer and use public reports to prepare five-year forward-looking financial statements, making assumptions from historical trends or public data.

Download the Excel template attached with this lecture to practice the course illustrations alongside the instructor.

Forecast the company’s financial statements in six steps: capture historical income statements and balance sheets, compute ratios, extrapolate future ratios, and project income statement, balance sheet, and cash flow.

Capture historical income statement and balance sheet data from 2012–2016 in the provided IS & BS tab to forecast 2017–2021, using the annual report as source.

Calculate historical income statement and balance sheet ratios from 2013 to 2016, including revenue growth, cost of goods sold, sg&a, depreciation, interest, and effective tax rate.

Compute balance sheet ratios for retailers by expressing inventory, accounts receivable, and plant and machinery as percentages of revenues, with accounts payable as a percentage of cost of goods sold.

Extrapolate future income statement ratios for a five-year forecast (2017–2021) using historical trends, with zero revenue growth and gradual changes to COGS, SG&A, depreciation, interest, and tax rate.

Forecast balance sheet ratios for a large retailer by extrapolating historical averages for inventory, accounts receivable, plant and machinery, and accounts payable over five years.

Forecast the future income statement and balance sheet by reviewing historical statements, computing key income statement and balance sheet ratios, and extrapolating future ratios from historical trends.

Forecast next five years’ income statement and balance sheet in Excel model using a 0% revenue growth rate, then compute cost of goods sold, SG&A, EBIT, taxes, and net income.

Forecast the assets side of the balance sheet by applying revenue-based percentages to inventory and accounts receivable, then estimate cash, plant and machinery, other long-term assets, and total assets.

Forecast the future balance sheet liabilities and equity by projecting short-term and long-term debt, accounts payable, and other liabilities, and update common equity with projected profits, depreciation, and interest expense.

Explore the cash flow statement and its three buckets: operations, investment, and financing, and how growth versus stability shapes cash flows for forecasting.

Forecast cash flow from operations by starting with net profits after tax, then add back depreciation and interest, and adjust for changes in accounts payable, inventory, and accounts receivable.

Calculate the cash flow from investments by deriving capital expenditure on fixed assets, applying the fixed assets equation, and adjusting for depreciation, other long term assets, and liabilities.

Calculate the cash flow from financing by deriving new equity raised, debt increases, and interest expense using the shareholder equity equation and related formulas.

Aggregate cash flows from operations, investments, and financing to compute net cash flow. Add the opening balance to obtain the closing cash balance for each year 2017–2021.

Link the cash flows statement to the balance sheet to create integrated, forecasted financial statements. Confirm that total assets equal total liabilities for each year from 2017 to 2021.

Recap the six-step process for forecasting a large US retailer's financial statements, using historical income statements and balance sheets, ratios, and projecting the cash flow statement and its components.

Master the fundamentals of company valuation using discounted cash flow techniques and build a simple high-level dcf spreadsheet model, then analyze valuation sensitivities for financial analysts.

Define valuation and its aim to determine a company's intrinsic or fair value beyond current stock prices. Discover the fundamental approach, including discounted cash flow.

Explain how the discounted cash flow method estimates a company's enterprise value by valuing operating side of business and deriving shareholders' equity by subtracting debt to compare with market price.

Apply the discounted cash flow approach to estimate enterprise value from post tax operating cash profits minus cash investments, detailing EBIT-based cash profit and non-cash adjustments, depreciation, and capital expenditures.

Forecast future cash flows by estimating revenues, operating expenses, depreciation, taxes, capex, and working capital for each year. Explain how today’s value depends on future cash flows for valuation.

Understand how discounting converts future cash flows to present value using the weighted average cost of capital (WACC), the minimum return demanded by debt and equity providers.

Discount explicit cash flows by (1+WACC)^year to obtain their present values. Add them to get enterprise value, forecast cash flows for 3–5 years, and determine the terminal value for perpetuity.

Learn to calculate terminal value beyond the explicit forecast using the last year's free cash flow, terminal growth (often near GDP growth), and the WACC minus g formula.

Add up the explicit cash flows and the terminal value to derive the enterprise value; subtract debt to obtain equity value using the discounted cash flow approach.

Explore discounted cash flow valuations through a practical, Excel-based exercise that links free cash flow to the firm, weighted average cost of capital, and terminal value to estimate company value.

learn the five steps of the dcf valuation for a private company, including calculating fcff, wacc, terminal value, enterprise value, and equity value using excel.

Download the Excel template provided with this module and practice the illustrations alongside the instructor for hands-on experience with the course module.

Use a discounted cash flow model to value a private company, deriving free cash flows from forecasted income statements and balance sheets, with WACC and terminal value.

Compute the five-year dcf valuation by linking revenues from the management forecast, calculating free cash flow from operating profit and investments, and deriving ebit after cogs, sg&a, and depreciation.

Apply the 30% tax rate to EBIT to derive post-tax operating profit, then add depreciation to reach post-tax operating cash profit for free cash flow calculations.

Compute capital expenditures for the free cash flow to the firm by using opening and closing fixed asset balances and depreciation.

Compute operating cash investments by summing capital expenditure and changes in working capital, using the DCF management forecast to track incremental working capital year by year.

Compute FCFF as post tax operating cash profit minus operating cash investments. The example shows negative FCFF in early growth and turning positive as profits rise and investments decline.

Calculate the weighted average cost of capital (WACC) by combining post‑tax debt cost and equity cost, weighted by the debt and equity share in total capital.

Explore how compounding grows a principal into future value and how discounting brings future cash flows back to present value using a discount rate in Excel calculations.

Calculate the present value of future free cash flows by applying year-specific discount factors derived from the WACC, showing how distant years shrink value.

calculate the terminal value to capture the firm's value beyond year five in a dcf framework, using terminal growth, free cash flow, and discounting with wacc.

Calculate enterprise value by summing the present value of future cash flows and the present value of the terminal value, discounted with the WACC, yielding about 74 million.

Compute the equity value by subtracting the 2015 total debt from the enterprise value. Then divide the equity value by total outstanding shares to obtain the per-share value, about 72.7.

Perform sensitivity analysis on a share price using a discounted cash flow model by varying terminal growth rate and WACC in an Excel data table.

We recap valuation fundamentals focused on discounted cash flow method, showing how to calculate dcf, free cash flow, wacc, terminal value, and terminal growth rate sensitivities using an excel model.

Explore multiples-based valuation concepts and sum-of-the-parts techniques to value an FMCG company, compare multiples, and identify the most valuable business segments.

Explore two core equity valuation techniques: the discounted cash flow absolute method and the multiples-based relative approach, using forward multiples from peers and a DCF-first workflow.

Explore the discounted cash flow valuation technique, focusing on discounting with the weighted average cost of capital and the calculation of free cash flows to the firm.

A multiple is a ratio of company value to a performance measure, such as earnings or EBITDA, using forward earnings multiples and illustrated by a 15x P/E.

Multiples denote how many years of earnings we value a company at, using the next 12 months earnings estimate, with higher multiples like 15x versus 10x signaling a higher valuation.

Explore enterprise value multiples such as EV/EBITA, EV/EBITDA, EV/Sales, and EV to invested capital. Learn price multiples like price to earnings and price to book, and ensure numerator-denominator consistency.

Illustrate multiples-based valuation for a private equity investment in an FMCG company through a case study, analyzing fragmentation, competition, and lack of listed peers to set an investment price.

Analyze the five-year forecasted income statement and balance sheet to perform multiples-based valuation using management estimates, tracing revenues, cogs, gross profit, sg&a, depreciation, ebit, ebt, and net income.

Execute three steps to value a private FMCG company using multiples: identify right listed peers, compute forward multiples, and apply peer averages to estimate value.

Identify the right peers for FMCG valuation by applying a color-coded screening (green, orange, red) based on home-market focus and the three products: soaps, shampoos, toothpaste.

Calculate forward ev/ebitda and pe multiples for five peers using market value, net debt, and 2017 EBITDA; compute averages and medians to apply to the target valuation.

Apply peer-average EV/EBITDA and P/E multiples to the target’s 2017 EBITDA and net income to estimate enterprise and market value, then subtract net debt to get the market value.

Compare EV multiples with price multiples to see how debt and non-operating items distort earnings. Learn why EV multiples are preferred for valuation due to their independence from capital structure.

Explore the concept of multiples, including EV and price multiples, how they are calculated and interpreted. Learn the steps to a forward, peer-based valuation and why EV multiples are preferred.

Apply multiples based valuation to a sum of the parts approach, valuing each business unit with its appropriate multiple using an Excel-based exercise, illustrated by Johnson and Johnson’s diversified units.

Download the Excel template provided for this module and use the instructor's file to illustrate concepts, practicing the exercises hands-on with the attached spreadsheet.

Apply sum-of-the-parts valuation using peer-average EV/EBIT multiples to estimate each business unit's enterprise value and total equity value for a conglomerate.

Derive equity value from enterprise value by adding non-operating assets and subtracting non-operating liabilities, using the sum-of-the-parts multiples approach, and compute equity value per share.

Explore advanced excel functions for analyzing large data in finance, including list, offset, sumproduct, goal seek, index–match, pivot tables, and indirect, with practical examples and exercises.

Explore how the LIST function in Excel creates a drop-down from a set of options using data validation, enabling dynamic, flexible models with a source range like B5:B8.

Use the offset function in Excel to fetch a value from a reference cell by shifting rows and columns according to a chosen scenario, enabling dynamic modeling.

Explore how the sumproduct function multiplies arrays and sums results, using conditions with double hyphens to filter by stock names, demonstrated on daily trade data for three stocks.

Learn how to use Excel's goal seek within what-if analysis to find the required online advertisements and achieve a target revenue, using conversion rates and course price.

Master extracting values from 3-dimensional data in excel with index and match. Use year, state, and month arrays to locate positions and retrieve the rainfall increase for any combination.

Use pivot tables in Excel to summarize enrollments by region, course, and year, and compare totals or averages with filters.

Learn to use the indirect function in Excel to summarize EBITDA, EBIT, and WACC margins from multiple sheets into one view, using dynamic cross-sheet references.

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