Investment Banking: Valuation| Financial Modeling| Pitchbook

Explore absolute valuation methodologies, including the discounted dividend model and asset-based methods, and contrast liquidation value with going-concern value to determine a company's intrinsic value.

Examine intrinsic valuation using discounted cash flow, including two- and three-stage growth models, and contrast firm valuation with equity valuation using weighted average cost of capital or cost of equity.

Explore the accounting equation where assets equal liabilities plus equity. See how purchases, inventory, revenues, cash, and accounts receivable affect assets, liabilities, and retained earnings to keep the balance.

Discover how DCF yields intrinsic value from cash flows, explains enterprise value and equity value, and enables sensitivity tables and customization for valuation.

This lecture outlines steps of a discounted cash flow analysis, guiding you to estimate cash flows, growth, and terminal value, and derive enterprise and equity value.

This lecture compares two methods to estimate free cash flow: forecasting cash flow growth versus building cash flow from revenue and net income components, advocating detailed micro-level modeling.

Learn to forecast cash flows in a DCF model by linking inputs, avoiding hard coding, and tracking depreciation and amortization, working capital changes, capital expenditures, and applying the tax rate.

Examine how to incorporate preferred stock and after-tax considerations in valuation, and compare DCF with other methods via football field analysis.

Explore the module outline for the complete investment banking course, clarifying course expectations, essential valuation methods, and the role of basic accounting equations in investment analysis.

Gather data, select relevant multiples, and perform balance sheet analysis using DCF and relative valuation; display a football field to determine undervalued or overvalued stocks for long or short positions.

Learn to value assets by discounting future cash flows to present value and by using similar properties, while understanding enterprise value and equity value in balance sheets.

Explore enterprise value as the value of a company’s net operating assets, detailing adjustments for equity value, debt, pension obligations, capitalized leases, minority interest, and cash.

Learn to compute enterprise value and equity value, why add minority interest to EV, and how cash, marketable securities, and net debt shape the valuation.

Apply discounted cash flow to value a company's enterprise and equity, considering net debt, assess intrinsic value against market price, and compare liquidation value and dividend discount models.

this lecture explains relative valuation through compatible comps and the law of one price, estimating a company's value from similar peers while noting limits when suitable comps are scarce.

Compare comparable comps with other valuation methods such as DCF to value a company, using data from annual reports or public sources, and adjust for current market conditions.

Explore the continued use of comparable company analysis (comps) in investment banking, detailing data gathering, valuation steps, growth assumptions, and limitations alongside public sources and case considerations.

Identify comparable companies, gather data from balance sheets, income statements, and cash flows, and adjust for differences to assess whether a company is undervalued.

Choose peers by evaluating qualitative and quantitative factors, ensuring peers operate in the same industry, geography, and revenue model, to establish a reliable valuation base.

Select peers with similar business and financial risk by matching industry, geography, customers, working capital, margins, growth, and cash conversion; cap at four to five peers for reliable benchmarking.

Explore how enterprise value equals market cap plus debt minus cash and liquid assets. Compare enterprise value multiples with equity multiples and understand their valuation implications.

Analyze industry-specific multiples for valuation using last twelve months data and quarterly reports; benchmark with average and median multiples and apply price-to-earnings and related metrics.

Gather data from annual and quarterly reports, align currencies, and convert with consistent exchange rates. Calculate basic and diluted shares using the treasury stock method to inform enterprise value.

Draw the comps sheet by consolidating analyses into an output sheet, linking data across sheets with the indirect function, ensuring consistent company names and local currency with 52-week high DCF.

Explore common interview questions on valuation methods—precedent transactions, comps, and dcf—explain enterprise value, minority interest, and why multiple choices matter in investment banking.

defines wacc and how raising capital in the equity-debt mix sets cost, then outlines free cash flow calculation, depreciation, and working capital in dcf.

Forecast ten years of free cash flow by including depreciation, capital expenditures, and working capital changes, then discount with weighted average cost of capital to determine present and terminal value.

Explore financial modeling as a tool to forecast a company’s financials using Excel, from simple formulas to complex models, covering income statements, cash flows, ratios, scenario analysis, and valuation insights.

Explore the framework of a financial model by predicting a company's future performance through its income statement, balance sheet, cash flow, and key drivers such as revenue.

Learn to build easy-to-understand financial models that are well-presented and well-documented, with clear assumptions, color-coded visuals, and step-by-step pacing for complex case studies.

Define the financial model's end user, management, and analyst needs, tailoring assumptions and reasoning, with clear sensitivity analysis to support fast, objective decisions.

Analyze the macroeconomic environment guiding Siemens, focusing on energy and real estate segments, Germany's euro region context, and regulation shaping housing and office market trends.

Brexit lowers Germany's 2017 GDP forecast to 1.3% from 1.6%, due to weaker exports and investment. Siemens stays global as oil markets shift, with real estate looking strong.

Populate the historical income statement and balance sheet by importing revenue and cost of sales from annual reports, align years correctly, and use sums with negative formatting for costs.

Develop Excel-based financial modeling skills, formatting negatives and using minus signs, to build income statements, balance sheets, and cash flow schedules with depreciation, stock-based compensation, and basic and diluted shares.

Compare Siemens revenue forecasts with Nomura equity research to validate assumptions, and build a driver-based income statement covering cost of sales, margins, R&D, and SG&A.

Build the working capital schedule by forecasting accounts receivable from sales, applying days sales outstanding, and forecasting inventory from cost of sales, aligning with equity research.

Learn to build a combined property, plant and equipment and intangible assets schedule, reconcile depreciation and amortization, and analyze cash flow and balance sheet implications for case studies.

Analyze long term debt dynamics by estimating borrowings, calculating interest expense from notes and bonds, and understanding paid-in-kind interest within the balance sheet and cash flow framework.

Explore building the cash flow statement from the balance sheet and income statement, using the indirect method to reconcile net income with operating cash flow and key working capital items.

Calculate interest income from cash balances using the average beginning and end period cash and the cash interest rate. Explore mixed ratios and forecasting across years.

Analyze ratio analysis to assess solvency, liquidity, and profitability using current, quick, cash, and solvency ratios, cash conversion cycle, and days sales outstanding, days inventory outstanding, and days payable outstanding.

Explore scenario analysis in a financial model by linking base and best/worst case drivers, using match and offset functions, and applying conditional formatting to highlight outcomes.

Develop robust financial models by using few sheets with an index, clearly presenting assumptions, linking inputs to outputs, and including executive summaries for first-time readers.

Master Excel best practices for investment banking models, avoiding data duplication and incorrect references. Build robust, transparent cash flows with balance sheet checks and thorough testing.

Identify common financial model mistakes, such as incorrect linking, sign errors, and circularity, and apply sense checks, proper hardcoding, and link verification across income statement, balance sheet, and cash flow.

Explore investment banking pitchbooks, including combo and scenario analysis, management presentations, and client updates, and contrast bulge brackets with boutiques while emphasizing attention to detail, revisions, and fair valuations.

Dell outlines a cash-generating, global expansion strategy to grow margins and recurring revenue through organic and inorganic moves, while assessing competitive risks for New Dell.

Dell investors evaluate strategic alternatives—from enhanced capital distribution and buybacks to separation—assessing risks, financing, and value creation, concluding an all-cash $13.65 billion offer is most attractive.

Explore how Catalyst Partners builds an autonomy pitch book, detailing headquarters, customers, revenue mix, data management market dynamics, and the IDOL probabilistic engine for competitive positioning.

Learn eight methods to craft a crisp, persuasive investment banking pitch book limited to 10-15 pages with clear messaging, executive summary, macro and company analysis, deal rationale, and key financials.

Adopt partnership principles and highlights of combination to craft pitch books, selecting synergies and strategic slides for a leading Indian mobile operator.

Explore how mergers and acquisitions pursue rapid deleveraging and asset-driven value, and learn to build a pitchbook with key approvals, slide layouts, and an appendix.

Learn to build pitch books in investment banking by screening US soaps and detergents companies, creating strip profiles, and presenting brief, selective analyses to senior bankers for potential acquisitions.

Summarize a U.S. residential solar energy company's business, financials from SEC filings, ownership, governance, and latest news for a pitch book, including power purchase agreements.