Excel for Financial Modelling and Valuation
This course is ideal for individuals looking to improve their financial analysis and valuation skills in a hands-on, practical way.
April
01,
2025
12:00 PM - 03:00 PM (Eastern Time)
Duration: 1 Day
Hours: 3 Hours
Training Level: All Levels
About the Course:
The "Excel for Financial Modelling and Valuation" course is designed to equip professionals with the necessary skills to build complex financial models and conduct valuation analysis using Excel. Over the span of three hours, you will learn the fundamental concepts of financial modelling, including building a profit-and-loss statement, balance sheet, and cash flow projections. You will also explore the key valuation techniques such as Discounted Cash Flow (DCF), Comparable Company Analysis (CCA), and precedent transactions, using Excel to model and assess a company’s financial health and future potential. This course is ideal for individuals looking to improve their financial analysis and valuation skills in a hands-on, practical way.
Course Objective:
- Understand the key components and principles of financial modelling and valuation.
- Build basic to advanced financial models in Excel, including the three primary financial statements.
- Learn how to project future financial performance using historical data and assumptions.
- Master valuation techniques such as DCF, Comparable Company Analysis, and precedent transactions.
- Use Excel to conduct sensitivity analysis, scenario analysis, and assess the impact of key financial variables.
- Learn how to structure, format, and present financial models and valuation outputs for decision-making.
- Develop a strong understanding of Excel functions and tools used in financial modeling and valuation.
Who is the Target Audience?
- Finance professionals, including analysts, associates, and managers, who want to develop or enhance their financial modeling and valuation skills.
- Students and professionals preparing for roles in investment banking, corporate finance, or financial consulting.
- Accountants or CFOs seeking to improve their ability to create or evaluate financial models and perform valuations.
- Entrepreneurs or business owners who need to build their own financial models and understand the valuation process.
- Anyone interested in building financial models and learning valuation techniques for investment and financial analysis.
Basic Knowledge:
- No previous knowledge of any tool or software is required to take this course, as we will cover everything from the beginning.
Curriculum
Total Duration: 3 Hours
Introduction to Financial Modelling and Valuation
- Overview of financial modelling and its role in business and finance
- Key concepts in financial modelling: assumptions, inputs, and outputs
- Understanding the different types of financial models: integrated models, projections, and valuations
- Introduction to key valuation methods: DCF, Comparable Companies, Precedent Transactions
Building the Foundation: Financial Statements in Excel
- Introduction to the three key financial statements: Income Statement, Balance Sheet, and Cash Flow Statement
- Structuring your financial model: Best practices in organizing your Excel sheet
- Inputting historical data: Sourcing data, formatting, and building assumptions
- Building a simple Profit-and-Loss Statement and Balance Sheet
Projecting Future Financial Performance
- Techniques for projecting revenues, operating costs, and EBITDA based on historical trends
- Forecasting capital expenditures, working capital, and debt schedules
- Integrating financial statements: How changes in one statement affect the others
- Building and applying assumptions to forecast future financials
- Sensitivity analysis: Understanding how changes in key variables impact financial projections
Valuation Techniques in Financial Modelling
- Discounted Cash Flow (DCF) Valuation
- Calculating Free Cash Flow to Firm (FCFF) and Free Cash Flow to Equity (FCFE)
- Estimating the terminal value using perpetuity growth method or exit multiple
- Discounting cash flows to present value using an appropriate discount rate (WACC)
- Building a DCF model in Excel: Step-by-step process and common mistakes to avoid
- Comparable Company Analysis (CCA):
- Selecting peer companies and gathering data
- Key multiples: EV/EBITDA, P/E ratio, and others
- Building a Comparable Company analysis table in Excel
- Interpreting the results and understanding relative valuation
- Precedent Transaction Analysis:
- Selecting relevant transactions and calculating multiples
- Analyzing the transaction and adjusting for differences
- Building a precedent transactions table and analyzing the results
Advanced Excel Tools for Financial Modeling
- Excel functions for financial modeling: NPV, IRR, PMT, and more
- Using Excel's scenario and data tables for sensitivity analysis and stress testing
- Incorporating Excel’s Solver tool for optimization and financial decision analysis
- Structuring and formatting financial models for clarity and accuracy
- Creating dynamic charts and tables to visualize financial data
Presenting Financial Models and Valuations
- How to structure a professional financial model and valuation report
- Tips for presenting findings to stakeholders or investors
- Understanding how to communicate assumptions and conclusions effectively
- Creating an executive summary and presenting the key results of your model
- Formatting your Excel model for presentation purposes: Making it readable and user-friendly
Best Practices and Common Pitfalls
- Best practices in financial modelling and valuation
- Avoiding common mistakes: Overestimating revenue, underestimating costs, and unrealistic assumptions
- Audit tools in Excel: How to check and verify your model’s accuracy
- How to continuously update your model with new data and assumptions
- Leveraging Excel templates for efficient modelling and valuation