Financial modeling demands a logical, consistent approach. This workshop builds a financial analysis and a valuation model through a series of logical and practical stages.
Upon completion, delegates will have a comprehensive understanding of advanced modeling, as well as how each technique can practically be applied through:
- Building a financial model from a blank sheet
- Designing models which minimize errors
- Writing models which can be maintained and augmented in the future
- Developing models with advanced techniques such as risk, sensitivity, and optimization and forecasting.
- Financial Analysis and Valuation
- Different approaches to valuation
- Financial analysis and valuation framework model
- Useful Excel methods, features and techniques
- Common pitfalls and mistakes in Excel.
- Alternative Model Review
- Model Structure and Planning
- Model design and structure - key stop
- Planning the equity valuation model
- Required sheets, calculations and DAYs
- Five essential auditing techniques.
- Completing and Checking the Financial Analysis/Valuation Template
- Adding Cash Flows and Ratios
- Structured model with a menu and accounting statements
- Calculating key financial ratios
- Adding Cash Flow and Ratios to Template
- Non-cash Flow Valuation
- Non-cash flow methods
- Accounting methods
- Dividend discount models
- Market-based methods - EPS and multiples
- Peer groups
- Calculating Accounting and Market Value on Template
- Forecasting and Equity Valuation
- Forecasting Methods
- Review of forecasting methods
- Macro forecasting
- Linear methods
- Review of historical performance
- Relationship between company and financial strategy
- Identifying and forecasting key drivers
- Linkages and modeling problems
- Reviewing Performance and Adding a Forecast.
- The Case Template and Deriving Forecast
- Financial Statements.
- Free Cash Flows
- Derivation of free cash flow
- Checking model results and redefining forecast
- Reasonableness of forecast and results.
- Adding Free Cash Flow to the Model.
- Cost of Capital:
- Alternative theories – bonds and arbitrage pricing theory
- Capital Asset Pricing Model constituents
- Discussion and agreement on WACC inputs
- Asset and equity betas and risk
- Mathematical derivation
- Deriving Beta from Data and Adding WACC to Case
- Initial Equity Valuation:
- Methods of adding terminal value
- Producing an equity valuation
- Comparison to existing share price
- Adding Equity Valuation to the Template
- Risk, Targeting and Other Layers
- Alternative Cash Flow Valuation
- Time varying WACC
- Adjustments to value
- Adjusted Present Value (APV) method
- Existence and addition of financial and operational synergies
- Reconciliation to economic profit
- Adding APV to the Template
- Risk and Sensitivity
- Understanding of risk and multiple answer
- Sensitivity and tables
- Creating sensitivity graphs
- Scenario planning based on economic climate
- Alternative scenario methods
- Testing the Models with Different Sensitivity and Risk Matrices
- Optimum Structure and Targeting
- Achieving a target valuation
- Goal seeking method
- Testing valuation with leverage and structure
- Targeting the Case to Improve Valuation Sensitivity
- Management Reporting and Model Review:
- Management reporting and summary
- Suggestion for other improvements to the valuation model
- Final audit
- Help and user assistance
- Securing and protection
- Documentation and maintenance
NOTE: Participants Must Be With Their Computers
|5/7 Alade Lawal Street, Opposite Divisional Police Station, Off Ikorodu Road, Anthony, Lagos.
Registration: 8.30 - 9.00 a.m.
Class Session: 9.00 - 4.00 p.m.
||May 22 - 24 May, 2017
Discount of 5% to 3-4 participants from same organization.
Discount of 10% to 5 or more participants from same organization.