Course Outline
- Advanced Excel for financial modeling
- Excel tips and tricks that will help you speed up your spread sheet
- Logical tests
- Protecting your data
- Database activities
- Pivot Tables
- Grouping data
- Vertical and horizontal lookup tables
- The magical choose function
- Interactive formulas to extract data
- String functions
- Data tables
- Interactive Graphs
- Fundamentals of financial modeling
- Time value of money:
- Present Value (PV) Future Value (FV) and Net Present Value (NPV)
- Internal Rate of Return (IRR) and Multiple IRR (MIRR)
- Equity IRR and project IRR
- Using XNPV and XIRR
- Contradicting NPV and IRR
- Amortization of loan schedule
- Enterprise value, market capitalization, firm value and equity value
- Effective interest rate
- Compound Annual Growth Rate (CAGR)
- Investment assumptions and cash flows
- What needs to be included?
- Forecasting revenues
- Forecasting costs and expenses
- Focusing on income statement or cash flow?
- Valuation techniques
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- Analyzing historical information and developing a projection basis
- Using ratio analysis to prepare projected financial statements
- Debt capacity and credit analysis for the acquisition
- Sensitivity analysis on cash flows
- Weighted Average Cost of Capital (WACC)
- Adjusted Present Value (APV)
- Using Capital Assets Pricing Model (CAPM) to determine cost of equity
- Implied risk premium in the current Price Earnings (PE) multiple
- Gordon model to determine cost of equity
- Using PE multiple to determine cost of equity
- Accrual accounting valuation
- Valuation using multiples
- Transaction multiples
- Building real life models
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- How financial models work
- Modeling income statements
- Modeling balance sheets
- Sensitivity analysis
- Developing an integrated financial model
- Automotive
- Hospitality
- Real estate
- Education
- Special modeling and valuation considerations
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- Structured valuations
- Financial modeling best practices
- Return on Investment (ROI) and Return on Equity (ROE)
- Investment structures
- Direct ownership
- Partnership and joint venture
- Build, Operate and Transfer (BOT)
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