Best Practice Financial Modeling (Intermediate)

Key Learning Outcomes:

• Construct professional models
• Understand how to build integrated models with additional valuation or analysis
• Understanding the sensitivity of key drivers
• Significantly improve efficiency of using shortcuts
• Optimise the use of financial functions

Basics of financial modeling

• Projection of P&L, balance sheet and cash flow
• Balancing numbers, circular references
• Professional use of excel -protection, range names, data validation
• Overview of useful functions (IF, MAX, MIN, NPV, IRR etc.)
• Overview of effective shortkeys
• Model exercises

Professional models

• What is a good model?
• Modeling - from basic to professional
• Flexible and user-friendly models
• Scenario analyses
• Sensitivity testing

Build your own model

• Building models from scratch
• Provided with annual report and equity research report
• Building a model with assumptions and key drivers
• Is the share undervalued or overvalued?

Valuation concept reviewed

• Refresher of company valuation techniques
• Practical application of valuation constituents
• Concept of valuation techniques
• Key value drivers
• WACC exercises
• FCF exercises
• TV exercises
• From enterprise value to equity value

Additional applications of integrated financial models

Additional applications reviewed

How to expand your model for additional analysis including:

• Discounted cash flow
• Leveraged finance
• Overview of level of ratios in line with covenants

LBO modeling

• LBO financing concept reviewed
• Different leverage options
• Purchase considerations