ADVANCED FINANCIAL MODELLING IN EXCEL (Islamabad)

COURSE DESCRIPTION

Financial modeling is a wonderful opportunity to learn as much as possible about a business. Creating an electronic replica of a business forces us to understand all the nuances of that particular project or company. While it is an amazing learning opportunity, the person building the model needs to remember that it must also serve a larger group of stakeholders. These stakeholders will vary depending on the model to help guide and inform their decision-making processes.

Financial modeling is a wonderful opportunity to learn as much as possible about a business. Creating an electronic replica of a business forces us to understand all the nuances of that particular project or company. While it is an amazing learning opportunity, the person building the model needs to remember that it must also serve a larger group of stakeholders. These stakeholders will vary depending on the model to help guide and inform their decision-making processes.

COURSE CONTENTS

• Advanced Excel for Financial Modeling
  • Advanced techniques to Expedite Workflow
    • Efficient formula writing
    • Formula & model auditing
    • Advanced cell locking
    • Hot Keys to work without the mouse
    • Windows & work with multiple applications
    • Go To Special
    • Paste Special
    • Project #1: Revenue build-up
  • Advanced Analytical Tools & Sensitivity Analysis
    • Goal Seek
    • Data Tables
    • Scenario Manager
    • Project #2: Cash flow modeling & sensitivity analysis
  • Database Functions for Finance
    • Advanced SUMIFS
    • VLOOKUP-MATCH
    • INDEX-MATCH
  • Functions for Financial Modeling
    • Financial functions
    • Date functions
    • Nested IF statements
    • IF Statements with AND/OR
    • CHOOSE function
    • Weighted average calculations
    • IFERROR
    • Projects #3: Loan amortization model
• Intro to Corporate Finance, Accounting, & Modeling
  • Intro to Corporate Finance
    • Net Present Value (NPV) and Internal Rate of Return (IRR) How are PV and IRR used in financial modeling?
    • How companies raise capital through debt and equity issuances
  • Enterprise value
    • Stocks, dividend yields, trading terminology, and valuation metrics Market Capitalization: Calculate the market cap for public companies Shares outstanding: How does share count change over time?
    • Enterprise Value: Calculate the enterprise value for public companies
  • Financial Accounting & Statement Analysis
    • Cash vs. accrual accounting
    • Assets = Liabilities + Shareholder’s Equity
    • Annual and quarterly filings, and press releases
    • Income Statement: Analyze line items on an income statement; calculate growth rates, and TTM
    • Balance Sheet: Review assets, liabilities and shareholder’s equity
    • Cash Flow Statement: Analyze a public company cash flow statement
    • Working Capital: Calculate and understand working capital
• In-depth Financial Modeling & Valuation
  • Company Analysis
    • Discuss the business model and value drivers of a company
    • Capital Structure: Calculate the total enterprise value and build a capital structure table
    • Historical Financials: Populate the historical financials
  • Financial projections
    • Create financial projections for revenues
    • Create financial projections for expenses
    • Create projections for the working capital items
    • Terminal Value
    • Estimate the company’s terminal value using the Gordon Growth Model
  • Discounting Cash Flows
    • Use CAPM to estimate the company’s cost of equity
    • Calculate the weighted average cost of capital (WACC)
    • Discount future cash flows with the midpoint convention
  • Corporate Valuation
    • Calculate the diluted shares outstanding using the treasury stock method
    • Derive a value per share from total enterprise value
  • Final Analysis & Reasonability Testing
    • Where does our model need additional analysis?
    • How does our value per share compare to the current price?
    • How do our financial projections compare to management’s and the analyst community
    • Analyze the output and determine reasonability of the model and assumptions What areas or assumptions require additional research?
    • What assumptions drive the valuation and how would changes impact our thesis
    • Should we invest in the stock at current prices?

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