Financial Modeling for Beginners

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[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][/vc_column][/vc_row][vc_row][vc_column][vc_empty_space height=”5em”][vc_column_text]Apane trainer dost ko jaanie:

  • Hi, I’m Zaid, your Course instructor. Here’s something about me
  • I’ve passed all three levels for the CFA Program
  • I’ve Worked in the Financial advisory unit of a top-tier consulting firm
  • I have Experienced in transactions carried out in the US, UK, GCC, Singapore, India, Hong Kong
  • I’ve worked in Banking, Retail, Real Estate, Telecommunication, Infrastructure, Agriculture sectors. Worked on company valuations, due diligence analysis, impairment tests, bankruptcy proceedings, cash flow analysis, and more.
  • Part of fund diligence in multiple investment/M&A deals with sizes ranging from $2mn to $100mn

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Course Sample Video

[/vc_column_text][vc_empty_space height=”2em”][/vc_column][/vc_row][vc_row][vc_column width=”1/2″][vc_column_text][/vc_column_text][/vc_column][vc_column width=”1/2″][vc_column_text][/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_empty_space height=”2em”][/vc_column][/vc_row][vc_row css=”.vc_custom_1554454988262{padding-top: 20px !important;}”][vc_column][vc_column_text]Table of Content[/vc_column_text][vc_tta_accordion][vc_tta_section title=”OVERVIEW OF FINANCIAL MODELING” tab_id=”1554454404200-f3920693-abb5″][vc_column_text]

  • What is Financial Modeling? A process used to aid investment decisions
  • Uses: Valuation/Business Plan/Project Evaluations
  • What is Financial Statement Analysis (FSA)? Overview of Financial Statements
  • Users of FSA and where to find the financial statements
  • Key Concepts: Time Value of Money, Double Entry Accounting, Accrual Accounting
  • Three Phases: 1. Populating Historical 2. Forecasting Financial Performance 3.

[/vc_column_text][/vc_tta_section][vc_tta_section title=”BUILDING A FINANCIAL MODEL” tab_id=”1554454404259-3cf60523-bb76″][vc_column_text]

  • Determining the color palette, historical & forecast time frame, formatting (column, width, font type, font size, color coding – Historical, Forecast, Drivers, etc.)
  • Grouping sheets while building similar structures
  • Building IS and BS with Vertical and Horizontal Analysis and CAGR
  • Creating Assumptions/Schedules Sheet to modify drivers of forecasted line items
  • Linking the items across the financial statements and other sheets
  • Deciding Key Driving Rates: Historical, Company Guidance, Analyst’s Judgement

[/vc_column_text][/vc_tta_section][vc_tta_section title=”INCOME STATEMENT” tab_id=”1554454464534-8da5fe0e-4d8d”][vc_column_text]

  • Building the format of the income statement and appropriation account
  • Creating revenue model with relevant drivers that are regularly disclosed by the company
  • Income (Core & Ancillary) and Expenses (Operating, non-operating, interest, tax)
  • Margin Base: Gross Profit, EBITDA, EBIT, Net Profit

[/vc_column_text][/vc_tta_section][vc_tta_section title=”BALANCE SHEET” tab_id=”1554454494599-9093a35a-f900″][vc_column_text]

  • Items to include from current assets & current liabilities in working capital calculation
  • Waterfall method of depreciation and CapEx with reinvestment ratio
  • Fixed Asset schedule calculation
  • Debt Schedule Calculation
  • Interest Calculation
  • Calculate Age, useful life, remaining useful life of assets using Gross Block, Accumulated Depreciation, Net Block and Annual Depreciation

[/vc_column_text][/vc_tta_section][vc_tta_section title=”CASH FLOW STATEMENT” tab_id=”1554454511806-3ae89231-dbcd”][vc_column_text]

  • Cash Flow from Financing Activities
  • Net Change in Cash
  • Opening and Closing Balance
  • Balancing Figure
  • Direct vs Indirect format of the Cash Flow Statement

[/vc_column_text][/vc_tta_section][vc_tta_section title=”DCF” tab_id=”1554454531170-56ecad9b-1055″][vc_column_text]

  • Free Cash Flow to the Firm (FCFF) vs Free Cash Flow to Equity (FCFE)
  • WACC, BETA, CAPM Calculation
  • Sensitivity Analysis on target price comparing growth and WACC in GGM

[/vc_column_text][/vc_tta_section][vc_tta_section title=”RELATIVE VALUATION” tab_id=”1554454532395-865417a0-1e83″][vc_column_text]

  • Equity Value Multiples vs Enterprise Value Multiples

[/vc_column_text][/vc_tta_section][vc_tta_section title=”INTEGRATED SHEETS” tab_id=”1554454568492-1c7df371-c78a”][vc_column_text]

  • Smartly linking key financial line items to easily update periodic data

[/vc_column_text][/vc_tta_section][vc_tta_section title=”RATIO ANALYSIS” tab_id=”1554454596701-b29ec0a5-f0ce”][vc_column_text]

  • Liquidity Ratios
  • Leverage Ratios
  • Efficiency Ratios
  • Coverage Ratios
  • Profitability Ratios