Financial Modeling using Microsoft Excel

Transcription

1 Module 1A: Valuation modeling Part 1 Introduction to valuation modeling Understanding integrated financial models - Basic valuation techniques: accounting-based, market-based and cash-flow based - Revenue versus potential Scenario analysis - Dealing with uncertainty: why we look at different scenarios - Case study 1: defining a worst-case scenario Working with cash-flows - Deterministic versus stochastic - Case study 2: building a cash-flow projection for a fixed-coupon bond Interest-rates and the price of time - Various definitions of interest-rates and yield curves - Discounting cash-flows Part 2 Putting it together: how to value a company? Backward-looking accounting-based valuation techniques - Ratio analysis and key financial analysis metrics - Case study 3: profitability analysis Forward-looking accounting-based valuation techniques - Working with balance sheet and P&L - Projecting financial ratios Discounted cash-flows valuation techniques - Modeling stochastic cash-flows - Case study 4: using Monte-Carlo simulations Module 1B: Project finance modeling Part 1 Profitability analysis The internal rate of return - Comparing different projects - Case study 5: calculating an internal rate of return

2 Costs analysis - Comparing different projects - Case study 5: calculating an internal rate of return Opportunity Cost - Relative project profitability - Market penetration and modeling competitors Various measures of profitability - Cash-flows patterns and uncertainty - Case study 6: profitability of a Venture-Capital fund investment Part 2 Capital usage and diversification Introduction to capital - The various forms of capital - Why companies need capital Capital-based profitability measures - Risk versus return trade-off - Return on capital and RAROC measure Contribution of additional risks - Incremental usage of capital - Case study 7: understanding diversification Assessing required capital - Various measures of risk-based capital - Case study 8: calculating a Value At Risk Module 1C: Merger and Acquisition (M&A) modeling Part 1 Advanced company valuation From several values to one valuation - Comparing the various company valuations - Using situational factors to increase valuation accuracy Influence of external factors - Analysts recommendations - Case study 9: impact of credit agency ratings Analysis synergies - Market segments overlapping - The effects of correlation

3 Part 2 Debt & equity structures Financing acquisition deals - Debt-based financing - Equity-based financing The various types of M&A deals - Equity, cash and equity-related derivatives - Case study 10: valuing warrants Capital increases: dilution and accretion effects - Assessing ownership dilution - Case study 11: calculating ownership dilution Putting it all together - Case study 12: igate-patni model Module 2A: Macros for financial modeling Part 1 Introduction to the use of macros Writing and using macros - Writing the macro - Running a macro - Case study 13: writing a macro to calculate the price of zero-coupon bond Working with cells and ranges - Cells and ranges in excel tabs - Working with arrays in VB - Case study 14: applying a function to an array of numbers Using VB forms controls for flexible GUI - Spreadsheet-based input/output v.s form-based - Case study 15: displaying the result of a calculation in a textbox component of a VB form Part 2 Dynamic use of macros and advanced concepts The various elements of VBA coding - Functions versus Sub - Using references to spreadsheet data - Public versus Private properties - Use of modules - Case study 16: defining new types of objects Breaking circular loops - Using the formula editor - Assessing formulas values

4 Writing a comprehensive macro - Objects links in the spreadsheet - Function versus Sub macros - Case study 17: Monte-Carlo simulation macro to price a European equity Call option Module 2B: Advanced excel functions for financial modeling Part 1 Spreadsheet data manipulation Search functions - Using the functions Vlookup, Hlookup, Offset and Index - Case study 18: practical use of the vlookup function Ranges and names - How to give a name to a range - Using the excel name manager Introduction to the Excel solver - Case study 19: calculating a project IRR using the excel solver - Introduction to coding the Excel solver in VBA Part 2 Using excel built-in functions Statistical functions - Mean, standard deviation, skewness, kurtosis - Case study 20: calculating a percentile using the excel function Probabilistic functions - Normal distribution functions - Case study 21: implementing the Black-Scholes pricing model for options Date and time functions - Working with date functions - How to use the exact date & time in VBA code - Case study 22: using the function days360 for bond valuation Text and strings functions - Functions to combine strings - Functions to split strings into small parts

5 Module 2C: Advanced charting and dash-boarding techniques Part 1 Using charts in Excel - Data ranges - The various types of charts - Case study 23: example of Linkedin chart Charts formatting - Elements of the chart - Positioning - Formatting Advanced charting techniques - Adding curve-fitting formulas - Controlling chart features from VB - Case study 24: changing the data ranges from VB Part 2 Using tables and automatic formatting Using tables - Auto-formatting - Using pivot tables Creating dashboards - Using summation functions in excel: sum, sumif, sumifs - Defining printing ranges - Case study 25: creating a company valuation dashboard