Course Objectives
Certificate in Advanced Financial Modeling
Course Methodology
This course uses hands-on applications 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:
Prepare effective financial models utilizing powerful Excel functions
Use core financial modeling techniques
Forecast investments and calculate valuations of projects and companies in an effective manner
Develop comprehensive financial models to support investments decisions
Recognize special modeling and valuation considerations and best practices
Target Audience
Corporate finance professionals, investment professionals, CFOs, financial controllers, finance managers, financial analysts, corporate bankers, and business development analysts.
Target Competencies
Using advanced Excel
Performing capital budgeting analysis
Forecasting cash flow
Calculating cost of capital
Practicing financial modeling
Understanding scenario analysis
Calculating free cash flow
Note
This is a hands-on training course using laptops, which will be made available by Meirc for the duration of the training.
Course Outline
Advanced Excel for financial modeling
Excel tips and tricks that will help you speed up your spread sheet
Logical tests
Protecting your data
Database activities
Pivot Tables
Grouping data
Vertical and horizontal lookup tables
The magical choose function
Interactive formulas to extract data
String functions
Data tables
Interactive Graphs
Fundamentals of financial modeling
Time value of money
Present Value (PV) Future Value (FV) and Net Present Value (NPV)
Internal Rate of Return (IRR) and Multiple IRR (MIRR)
Equity IRR and project IRR
Using XNPV and XIRR
Contradicting NPV and IRR
Amortization of loan schedule
Enterprise value, market capitalization, firm value and equity value
Effective interest rate
Compound Annual Growth Rate (CAGR)
Investment assumptions and cash flows
What needs to be included?
Forecasting revenues
Forecasting costs and expenses
Focusing on income statement or cash flow?
Valuation techniques
Analyzing historical information and developing a projection basis
Using ratio analysis to prepare projected financial statements
Debt capacity and credit analysis for the acquisition
Sensitivity analysis on cash flows
Weighted Average Cost of Capital (WACC)
Adjusted Present Value (APV)
Using Capital Assets Pricing Model (CAPM) to determine cost of equity
Implied risk premium in the current Price Earnings (PE) multiple
Gordon model to determine cost of equity
Using PE multiple to determine cost of equity
Accrual accounting valuation
Valuation using multiples
Transaction multiples
Building real life models
How financial models work
Modeling income statements
Modeling balance sheets
Sensitivity analysis
Developing an integrated financial model
Automotive
Hospitality
Real estate
Education
Special modeling and valuation considerations
Structured valuations
Financial modeling best practices
Return on Investment (ROI) and Return on Equity (ROE)
Investment structures
Direct ownership
Partnership and joint venture
Build, Operate and Transfer (BOT)