What does the modeling program cover?
The objective of this program is to equip delegates with the knowledge and tools that will enable them to develop a fully integrated three statement financial model from scratch and perform equity valuation.
Watch our expert financial modeler, Rahul Sonthalia, CFA, CMA provides a keen insight into how you can build a financial model on excel, starting from a blank spreadsheet through our 3-day program.
Learning Objectives
- Understand how to plan the model design and structure
- Forecast financial statements
- Develop consistent and review friendly models
- Understand how to perform a flexible DCF valuation
- Perform scenario and sensitivity analysis
Program Agenda
Financial Modeling
- Overview of Financial Modeling
- Key Excel tools used in financial modeling (Logical & Date functions, Data Tables, Index & Match, Choose, etc.)
Introducing the case study company
- Model design and structure for the case study company
- Know the key model outputs and their drivers
- Understand the requisite inputs
- Developing cell styles for model transparency and review
Financial Statements
- Extracting, cleaning and normalizing historical financial statements from annual reports
- Building error checks in the model
Forecasting financial statements
- Revenue modeling or different types of industries
- Forecasting key operating expenses and margins
Valuation
- Stepwise projection of income statement, balance sheet, and cash flows
Projecting key schedules
- Debt & interest, capex & depreciation and working capital, etc.
Equity Valuation
- Understanding and forecasting Free Cash Flows to the firm (FCFF)
- Understanding the key inputs and calculating WACC
- Calculating and performing sanity check for the terminal value
- Developing DCF Valuation
Analysis
- Performing sensitivity analysis using data tables
- Scenario analysis
Case Study: Developing the model from scratch for a large global/ regional public company
