Introduction to Financial Modelling and Valuation

Introduction to Financial Modelling and Valuation

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About this webinar
  • The basics of being efficient at Excel
  • Navigation
  • Short cuts - use of the keyboard!
  • The start of the model:
  • Setting up the individual pages
  • Getting the input page and forecast drivers
  • Creating the Income Statement, Cash Flow Statement and Balance sheet pages and getting the base data in
  • Pushing that base data into a clean modelling proforma, building the links between the sheets to drive the model.

Forecast Drivers
  • We know work through all the things we think drive the value of a company and see how this fills out the future financial statements
  • We keep working down all of those forecast drivers
  • The focus here is making sure the financial statements balance, and we check the ‘flow’ of the forecast drivers through the model

Building a Discounted Cash Flow
  • The concept of DCF
  • Bringing in EBITDA and the relevant cash flows
  • Building out a WACC – getting the cost of Debt and the cost of Equity
  • Discounting the cashflows to get Enterprise Value
  • Making the adjustments to get back to value of Equity.

Comparable Analysis
  • Putting together a peer group, selecting the group from data
  • Identifying key ratios to apply analysis
  • Calculating the peer group multiples
  • Applying to our numbers and getting a valuation.

Speaker
Rob Morgan CFA