Course Overview

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 to 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 proper analysis of financial information.

Course Objectives

By the end of this courses the participants will be able to:

  • Think in terms of terms of process-value added to customers/shareholders.
  • 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 Excel different modeling techniques

Who Should Attend

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.

Course Content

Module (01) 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

Module (02) 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

Module (03) 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

Module (04) 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

Module (05) 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