Financial modeling is crucial for taking investment decisions that can have a huge financial impact on companies. By attending this course, you will be able to effectively prepare and build financial models that cater to different types of investments alternatives, understand and analyze time value of money, present value, future value and weighted average cost of capital (WACC), in addition to conducting proper analysis of financial information.
Course Methodology
This course uses hands-on application of financial modeling in Excel, in addition to demonstrating theoretical core topics. The course also features real-life case studies and presentations by participants.
Course Objectives
By the end of the course, participants will be able to:
Apply time value of money concepts
Perform and interpret financial analysis
Apply cost of capital calculation techniques
Construct forecasted financial statement models and perform sensitivity analysis
Use the free cash flow technique in determining the value of a project or a company
Develop financial models using different Excel modeling techniques
Target Audience
Professionals in corporate finance, financial analysts, investment bankers, financial controllers, finance managers, professionals responsible for project valuation, project finance, portfolio managers, and professionals in the private investment industry.
Target Competencies
Using Excel for financial applications
Performing capital budgeting analysis
Understanding and practicing Present Value (PV), Net Present Value (NPV), Internal Rate of Return (IRR)
Understanding and calculating Weighted Average Cost of Capital (WACC)
Performing financial modeling using Excel
Reviewing scenario analysis
Note
This is a hands-on training course using laptops which will be provided by Plus for the duration of the course. For courses outside the UAE, participants need to bring their own laptops equipped with a fully functioning version of MS Excel 2010/2013.
Course Outline
Financial calculations: Applications
Time value of money:
Present value and net present value
Internal rate of return and Multiple IRR (MIRR)
Using XNPV and XIRR
Amortization of loan schedule
Effective yields and returns
Corporate financial analysis
Profit and loss versus balance sheet analysis
Comparable company analysis
Building block analysis
Vertical, trend, and horizontal analysis
Liquidity
Current, quick, and cash ratios
Asset management and activity
AR and AP Turnover
Cash conversion cycle
Asset turnover
Solvency, leverage and gearing
Debt, equity, and times interest earned ratios
Assessing profitability management
Profit margin, gross margin, return on assets, return on equity
Market and valuation
Price-earnings and earnings per share ratios
Modeling the DuPont identity
The three-step models
Calculating cost of capital and capital structure
The Gordon dividend model
Supernormal growth
Calculating cost of equity and cost of debt
Computing the expected return on the market
Computing weighted average cost of capital
Financial statement modeling
How financial models work
Modeling income statement
Modeling balance sheet
Free Cash Flow measurement (FCF)
Using FCF to value the firm and its equity
Sensitivity analysis
Discounted cash flow analysis
Developing an integrated financial model
Model construction techniques
Data tables design
Assumptions and input variable rules
Array functions and formulas
Spinner data modeling
List box data modeling
Option box data modeling
Acquiring and updating data from the text, access database, SQL, and the web