Course Overview
This course allows users to improve the reliability, quality and timeliness of their Excel models. Financial modelling demands a logical consistent approach and this workshop builds a valuation model through a series of practical stages.
Upon completion, delegates will have a comprehensive understanding of advanced modelling, as well as how each technique can practically be applied through the use of Excel.
Coures Objective
- Build a financial model from a blank sheet
- Design models which minimise errors
- Write models which can be maintained and augmented in the future
- Develop models with advanced techniques such as risk, sensitivity, optimisation and forecasting
Course Methodology
This programme will be delivered through a practical and interactive case study and worked examples, demonstrating how and why each technique is used. Emphasis is placed on the delegates gaining practical, hands-on experience of the design and construction of financial models in Excel. Delegates will also benefit from formal lectures and group discussions. Comprehensive product notes and modelling software will be provided for future reference.
Who should attend
The course will be of value to professionals in the following areas:
- Finance Directors / Financial Controllers / CFOs
- Business / Financial /Treasury / Market Analysts
- Corporate / Structured / Project Finance Officers
- Financial / Strategic Planners
- M&A Specialists
- Private Equity
- Project / Commercial Management
- Business Development and Marketing
- Systems Analysts
- Budget Managers
- Profit Centre Managers
- Credit Risk / Treasury Managers
- Actuaries
Day 1
Introduction
Overview of Valuation Modelling and Theory
- Overview of the course
- Case study outline
- Different approaches to valuation
- Financial analysis and valuation framework model
- Useful Excel methods, features and techniques
- Common pitfalls and mistakes in Excel
Exercise: alternative model review
Valuation Model Structure and Planning
- Model design and structure – key steps
- Planning the equity valuation model
- Required sheets, calculations and modules
- Five essential auditing techniques
Case: 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
- Deriving a UK and international cash flow
Case: 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
Case: calculating accounting and market value on template
Day 2
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 modelling problems
Case: Reviewing performance and adding a forecast to 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
Case: adding free cash flow to the modelCost 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
Exercise: 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
Exercise: adding equity valuation to the template
Day 3
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
Exercise: adding APV to the template
Adding Risk and Sensitivity
Understanding of risk and multiple answers
- Sensitivity and tables
- Creating sensitivity graphs
- Scenario planning based on economic climate
- Alternative scenario methods
Case: 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
Case: targeting the case to improve valuation sensitivity
Management Reporting and Model Review
- Management reporting and summary
Exercise: adding reporting to the valuation model
- Suggestions for other improvements to the valuation model
- Final audit
- Help and user assistance
- Securing and protection
- Documentation and maintenance
Course summary and close
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Alastair Day
Alastair Day is a finance professional with extensive experience of modelling, finance and leasing.
Alastair was previously a director of a start-up leasing company, which was later sold to a public company. Later, Alastair established an independent lessor and consultancy where he conducts consulting and contracting assignments on finance and modelling. Past projects have included aircraft leasing, investment, valuation and project finance models for a variety of clients.
Alastair designs and delivers courses covering financial modelling, credit analysis and equipment leasing.
He is the author of modelling textbooks such as Mastering Financial Modelling, Mastering Risk Modelling, Mastering Financial Mathematics in Excel and Mastering Cash Flow and Valuation Modelling together with leasing and credit books.
Alastair has a degree in German and Economics from London University and an MBA. He has held positions as an associate lecturer at the OUBS and the IFS School of Business (Chartered Institute of Bankers).
Courses run by this instructor
Interested in holding this course in-house? Please fill out your details and a member of our team will be in touch with more information.
28-30 May 2012 (Amsterdam, Netherlands)
15-17 Oct 2012 (Amsterdam, Netherlands)
This 3-day interactive workshop offers a practical study of the techniques of valuing and financing acquisitions.
24-27 Sep 2012 (Paris, France)
This comprehensive, 4-day training course allows delegates to analyse and practice a range of corporate valuation techniques, their appropriate application and their advantages and disadvantages.
18-20 Jun 2012 (Paris, France)
19-21 Nov 2012 (Paris, France)
A 3–day training course dedicated to the valuation, structuring, financing and negotiating of merger and acquisition transactions.
3-6 Dec 2012 (Prague, Czech Republic)
Excellent 4-day course teaching you how to build a successful corporate banking strategy and how to raise the performance of your institution. The course will teach you how to use the planning process to set goals, control costs and to increase the profitability of clients and sales channels.
24-27 Nov 2012 (Prague, Czech Republic)
Bank Valuation is a comprehensive, 4-day valuation course for banking experts.
10-13 Dec 2012 (Istanbul, Turkey)
A 4-day, intermediate-level course for people with several years experience in finance who want to reinforce and diversify their knowledge of the underlying frameworks and approaches in different areas of financial management.
18-22 Jun 2012 (Paris, France)
10-14 Dec 2012 (Paris, France)
A 5-day, case-study based workshop exploring more advanced issues in company valuation and financial modelling.
24-27 Sep 2012 (Prague, Czech Republic)
A 4 day financial training course, Financial Modelling for Mergers and Acquisitions is an intensive hands-on course in which you receive comprehensive instruction on modelling economic, financial and strategic issues associated with mergers and acquisitions. This course will take place in Prague, Czech Republic.
17-20 Sep 2012 (Prague, Czech Republic)
This 4-day course provides a comprehensive look at the most important recent trends and developments in bank reporting. It will improve your analysis skills, giving you the toolkit for better decision making, helping safeguard your organisation.
4-6 Jun 2012 (Paris, France)
3-5 Dec 2012 (Paris, France)
A 3-day course designed to provide a complete overview of the venture capital industry and its workings. Participants will gain a thorough understanding of the role and operations of a venture capital fund, and the complex financial engineering methods it uses.
24-27 Sep 2012 (Prague, Czech Republic)
A 4 day intensive, practical training programme combining a review of the latest valuation theory with real life case studies and team negotiation role plays. Advanced Private Equity & Valuation Workshop will take place in Moscow, Russia.
4-6 Sep 2012 (Oslo, Norway)
This 3–day course will provide delegates with all the necessary practical skills to model and value oil and gas companies, from the perspective of an investor, an equity analyst or a participant in a corporate transaction, whether a corporate or an advisor.
15-18 Oct 2012 (Prague, Czech Republic)
This 4-day workshop takes a hands on approach to a comprehensive set of financial modelling and valuation techniques with computer based case studies.
25-27 Jun 2012 (Oslo, Norway)
An intensive, 3-day, computer-based, practical training course with case studies and worked examples.
15-17 Oct 2012 (Prague, Czech Republic)
This 3-day course is designed to give delegates a comprehensive overview of the latest techniques and methodologies to successfully manage a corporate banking and SME network.
16-25 Jul 2012 (Prague, Czech Republic)
An 8-day financial training course based on case studies and model building.
The course is designed to provide an in-depth overview of the main areas in finance, including recent controversies and regulatory issues.
The course delivers exposure to all the main corporate finance disciplines including the main company funding areas such as debt and equity issuance, valuation, M&A, leveraged buy-outs and restructuring as well as the associated model-building.
27-29 Aug 2012 (Vienna, Austria)
Upon completing this 3-day workshop, delegates will understand how to build a flexible analysis model to restructure existing debt.
10-13 Sep 2012 (Barcelona, Spain)
Plan, evaluate and monitor all financial aspects of the restructuring process.
24-26 Sep 2012 (Belgrade, Serbia and Montenegro)
This 3 day programme focuses upon how the toolkit of managerial accounting can be linked sequentially and logically with the principles of financial economics. It will provide critical insight into how the tools and techniques of management accounting can be adapted and used to be consistent with achieving value growth.
26-28 Sep 2012 (Paris, France)
Delegates will leave this intensive three-day financial modelling in Excel training course with the ability to effectively apply modelling techniques in a wide range of practical scenarios. Featuring: Design & structure different models and translate them into Excel; Calculate free cash-flow; Use Monte-Carlo simulations; Identify decisions tree - problems & solutions; Develop models incorporating risk, sensitivity, optimisation and forecasting using solver.
This course has now expired please email us to find out when the course will next be running.