Financial Modeling and Valuation

1. What is Financial Modeling.
2. Top Level View of Financial Modeling.
3. Setting up the Financial Model.
4. Best Practices – Number and Color Coding.
5. Best Practices – Important Tips.

1. Understanding Historical Income Statement.
2. Populating Historical Income Statement.

1. Understanding MCD Balance Sheet.
2. Populating MCD Balance Sheet.

1. Understanding MCD Cash Flow Statement.
2. Populating Historical Cash Flow Statement.

1. Calculating Margins.

1. Vertical Analysis of Income Statement.

1. Vertical Analysis of Balance sheet.

1. Segmental Growth Forecast.
2. Price Volume Growth Forecast.
3. Occupancy Based Revenue Forecast.
4. Employee Based Forecast.
5. Sq Feet Based Forecast.
6. Capacity Based Forecast.

1. Understanding MCD Revenue Segments.
2. Populating MCD Revenue Segments.
3. Calculating MCD Yield Per Restaurant.
4. Projecting MCD Yield Per Restaurant.
5. Projecting MCD Restaurants.
6. Calculating MCD’s Projected Revenues.
7. Linking MCD’s Revenue Forecast.

1. Projecting MCD Operating Cost – MP4.
2. Projecting MCD SG&A Expenses.
3. Projecting MCD Non Operating Expense – MP4.
4. Projecting MCD Income Tax – MP4.

1. Understanding MCD Working Capital – MP4.
2. Linking Historical Working Capital – MP4.
3. Calculating MCD Accounts Receivable Turnover – MP4
4. Calculating MCD Inventory Turnover – MP4,
5. Calculating MCD Payables Turnover – MP4.
6. Calculating MCD Cash Conversion Cycle – MP4.
7. Forecasting MCD Cash Conversion Cycle – MP4.
8. Forecasting MCD Working Capital – MP4.
9. Linking Working Capital to Balance Sheet – MP4.
10. Linking Working Capital to Cash Flow Statement – MP4.

1. Depreciation and Capex Refresher – MP4.
2. Projecting Capex – MP4.
3. MCD Historical Property and Equipment – MP4.
4. Projecing MCD Property and Equipment – MP4.
5. Calculating MCD Depreciation Expense – MP4.
6. Completing MCD Depreciation Expense – MP4.
7. Linking Capex and Depreciation – MP4.

1. Calculating Historical Amortization.
2. Calculating Addition to Intangibles.
3. Forecasting Amortization.
4. Linking Software and Amortization.

1. Understanding Other Long Term Assets and Liabilities.
2. Projecting Other Assets.
3. Projecting Other Liabilities.
4. Linking Other Long Term Assets Liabilities.

1. MCD Consolidated Statement of Shareholders Equity.
2. Understanding Shareholders Equity Equation.
3. Linking the Shareholders Equity.
4. Projecting MCD Share Repurchase.
5. Projecting MCD Stock Options.
6. Projecting MCD Dividends.
7. Projecting Share Based Compensation.
8. Projecting Outstanding Shares.
9. Calculating Shareholders Equity.
10. Linking Shareholders Equity.

1. Cash Flow from Operations.
2. Cash Flow for Investing.
3. Cash Flow for Financing Activities.
4. Calculating Year End Cash Flows.

1. Debt Forecast Foundation.
2. Cash Available for Debt Repayments.
3. Understanding Cash Available for Line of Credit.
4. Forecasting Long Term Debt.
5. McDonalds Line of Credit.
6. Modeling Line of Credit.
7. Forecasting Line of Credit.
8. Interest Expense on Line of Credit.
9. Interest Expenses on Long Term Debt.
10. Interest Income.
11. Linking the Financial Statements.
12. Adjusting Debt.
13. Circular Reference in Debt.

1. Introduction to Dividend Discount Model.
2. Types of Dividend Discount Model.
3. Constant Growth DDM.
4. Two Stage DDM.
5. Three Stage DDM.
6. Professional Approach.
7. Sensitivity Analysis – Growth vs Fair Value.
8. Sensitivity Analysis – Growth and Cost of Equity.
9. Identifying Companies for DDM.
10. Limitations of DDM.

1. Discounted Cash Flow Introduction.
   • DCF Introduction.
2. Free Cash Flows.
   • Understanding FCFF.
   • Peter Business – Case Study 1.
   • Peter Business – Case Study 2.
   • Defining FCFF Intuitively.
   • FCFF Formulas.
   • FCFF Example.
3. Free Cash Flow to Equity.
   • Understanding FCFE.
   • FCFE Formulas.
   • FCFE Example.
   • When to Use FCFE.
4. Discounted Cash flow (Using FCFF).
   • Steps to DCF – MP4.
   • Step 1 – Projecting Financials – MP4.
   • Step 1 – Working Capital Turnover Ratios – MP4.
   • Step 1 – Projecting Working Capital – MP4.
   • Step 2 – Calculating FCFF – MP4.
   • Step 3 – Calculating WACC – MP4.
   • Step 3 – WACC – Basic Example – MP4.
   • Step 3 – Capital Structure – Book Value or Market Value – MP4.
   • Step 3 – Capital Structure – Debt – MP4.
   • Step 3 – Capital Structure – Options Refresher – MP4.
   • Step 3 – Capital Structure – Options Table – MP4.
   • Step 3 – Capital Structure – Effect of Options.
   • Step 3 – Capital Structure – Market Value of Equity.
   • Step 3 – Capital Structure – Debt Equity Proportion.
   • Step 3 – Cost of Equity – Introduction.
   • Step 3 – Cost of Equity – Understanding Risks.
   • Step 3 – Cost of Equity – CAPM – Risk Free Rate.
   • Step 3 – Cost of Equity – CAPM Beta.
   • Step 3 – Cost of Equity – Factors Affecting Beta.
   • Step 3 – Cost of Equity – Risk Premium.
   • Step 3 – Finding Risk Free Rate.
   • Step 3 – Finding Beta Using Regression Method.
   • Step 3 – Finding Beta Using SLOPE Method.
   • Step 3 – Finding Beta Using Variance Covariance Method.
   • Step 3 – Finding Beta – Practical Method.
   • Step 3 – Finding Beta – Levered Unlevered Method.
   • Step 3 – Finding Risk Premium.
   • Step 3 – Cost of Equity Calculation.
   • Step 3 – Cost of Debt – Credit Rating Method.
   • Step 3 – Cost of Debt – Synthetic Rating Method.
   • Step 3 – Cost of Debt – Using Financials Method.
   • Step 3 – WACC Calculation.
   • Step 4 – Terminal Value Introduction.
   • Step 4 – Terminal Value using Perpetuity Growth.
   • Step 4 – Terminal Value Using Exit Method.
   • Step 5 – Calculating Present Value.
   • Step 6- Calculate Share Price.
   • Step 7 – Sensitivity Analysis.
   • DCF Recap (Step 1 to 3).
   • DCF Recap (Step 4 to 7).
5. Discounted Cash Flow using FCFE.
   • Steps to DCF using FCFE.
   • Step 1 – Projecting Financials.
   • Step 2 – Calculating FCFE.
   • Step 3 – Cost of Equity.
   • Step 4 – Terminal Value.
   • Step 5 – Find Present Value.
   • Step 6 – Calculate Share Price.
   • Step 7 – Sensitivity Analysis.

1. Introduction to Relative Valuation.
2. Relative Valuation Sample.
3. Revisiting Enterprise and Equity Value.
4. Enterprise Value and Equity Value Multiples.
5. PE Ratio.
6. Historical PE Chart.
7. Limitations of PE Ratio.
8. Price to Cash Flow.
9. Chevron Price to Cash Flow.
10. Price to Cash Flow Limitation.
11. Price to Book Value.
12. Price to Book Value in Software Sector.
13. Price to Book Value in Auto Sector.
14. Price to Book Value in Banking Sector.
15. Price to Book Value citigroup target price.
16. Price to Book Value Limitations.
17. PEG Ratio.
18. PEG Ratio Applications.
19. PEG Ratio Limitations.
20. Dividend Yield.
21. Dividend Yield Rationale.
22. Dividend Yield Sectors.
23. EV to Sales.
24. Why use EV to Sales?
25. EV to Sales in Cyclical Sector.
26. EV to Sales vs P to Sales.
27. Target price using EV to sales.
28. EV to sales limitations.
29. EV to EBITDA.
30. EV to EBITDA – Retail Sector.
31. EV to EBITDA vs PE Ratio.
32. Target Price using EV to EBITDA.
33. EV to EBITDA Limitations.
34. EV to EBIT.
35. Target Price using EV to EBIT.
36. EV to EBIT Limitations.
37. EV to FCF.
38. EV to FCF Example.
39. EV to FCF Limitations.
40. EV to Capacity.

Our Financial Modeling and Valuation course is designed for finance professionals, analysts, entrepreneurs, students, and anyone seeking to master valuation techniques and financial modeling skills.

The Financial Modeling and Valuation course covers a wide range of topics, including organizing financial data, constructing dynamic financial models, valuation techniques, investment analysis, and strategic decision-making.

While prior knowledge of finance is beneficial, the course on Financial Modeling and Valuation is designed to accommodate learners at various levels. Whether you are a beginner or an experienced professional, our course will equip you with the necessary skills to excel in valuation and financial modeling.

Our Financial Modeling and Valuation Course offers a self-paced learning experience, giving you the freedom to study at your preferred pace. With access to pre-recorded video lessons and downloadable resources, you can conveniently navigate through the course content based on your own schedule and availability.

The course duration may vary depending on your learning pace and time commitment.

Yes, you will enjoy unrestricted access to the course materials beyond completion, allowing you to revisit lessons, review resources, and reinforce your understanding whenever necessary.

Yes, upon successful completion of the Financial Modeling and Valuation Course, you will receive a certificate of achievement. This certificate serves as recognition of your newly acquired valuation skills and can be added to your professional portfolio.

You may contact our course support at [email protected]