FINANCIAL MODELLING FOR VALUATION ANALYSIS

FINANCIAL MODELLING

Descriptions

Financial Analyst, Accountant, Operations Personnel, Project Managers, Mid, Top Managers, and Decision-Makers of every organization needs the knowledge of Financial modeling for them to function, conceptually financial modeling is a representation in numbers of some or all aspects of a company’s operations.

Financial Modeling is projected to be used as decision-making tools. Organizations adopt this model most often to estimate the costs and project the profits of a proposed new project. Financial analysts use them to anticipate the effect of a financial policy change or any other event on a company’s stock.

At the management level, financial modeling is used to estimate the valuation of a business or for peer analysis of businesses in the same industry.

They also use in strategic planning to test various scenarios, calculate the cost of new projects, decide on budgets, and allocate corporate resources.

Learning Objectives

  • Build financial models through the step-wise projection of income statement, balance sheet, and cash flows
  • Learn to apply Excel tools – Data Tables, Nested Ifs,
  • Time Value of Money
  • Develop key schedules including debt/interest, depreciation, working capital, and equity
  • Learn sensitivity analysis and scenario analysis
  • Understand the fundamentals of using data in Excel
  • Learn how to combine and condense information into a logical framework
  • Apply the different techniques for data analysis
  • Explore the use of charts and tables for effective analysis
  • Create dashboard reports for a more structured and visual presentation of the summary

Content

Module 1– Financial Modelling Techniques for Valuation Analysis

  1. Overview of Financial Modelling
  2. Excel tools used in Financial Modelling including
  3. Data Tables, Nested Ifs, Index, Time Value of Money Applications
  4. FAST standards for financial modeling
  5. Structuring input sheet and structuring timesheet using timing flags
  6. Modeling for assumptions and inputs
  7. Business Structure & revenue modeling
  8. Modeling for and projecting operating expenses
  9. Projecting key schedules including debt/interest, depreciation working capital, and equity
  10. Stepwise projection of income statement, balance sheet, and cash flows
  11. Beta computation using regression models
  12. Computing cost of equity using CAPM and WACC