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  • Financial Modeling and DCF Valuation

Financial Modeling and DCF Valuation

From: 02 October 2018
To: 03 October 2018
Hotel Ayana Midplaza
Jl. Jend. Sudirman Kav.10-11
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  • Summary

This 2-day training provides a step-by-step guide that takes the reader through the entire process of developing long-term projection plans using Excel. In addition, by making use of various tools in Excel, for example, one and two-dimensional Sensitivity Analysis and Sensitivity analysis to accommodate more than 2 key value drivers changes, it provides practical examples on how to apply risk and uncertainty to these projection plans. Although these projections are not guarantees they can help organizations to be better informed, and thereby provide peace of mind.

The training covers financial models in the area of financial statement simulation. It provides clear and concise explanations in each case for the implementation of the models using Excel. It is relevant to a variety of situations. At the most fundamental level, it can help:

▪ Project a company’s financial performance;

▪ Forecast future cash flows and perform a DCF valuation;

▪ Present the good, basic, and bad scenarios of the evolution of the company’s debt covenants.

I. Introduction

  • Definition and Uses of Financial Modeling
  • The Financial Modeling Process

II. Financial Statement Modeling - Case Study

  • Collecting and analyzing historical data
  • Selecting Key Forecast Drivers
  • Modeling the Income Statement
  • Balancing the Balance Sheet: The Debt Plug
  • Modeling Interest and Circular References
  • Modeling the Cash Flow Statement

III. Forecasting Revenues

  • An examination of the different types of forecasting techniques that can be used in financial modeling:
  • Linear regression
  • Non-linear forecasting
  • Practical exercise: Using regression analysis to produce a revenue forecast.

IV. Business valuation techniques

  • Discounted cash flow (DCF) technique
  • Comparable transaction technique
  • Listed multiples technique
  • Calculating the cost of capital (WACC)
  • Assessing terminal values
  • Practical exercise: Valuing a going concern company using Free cash flows

V. Risk and Sensitivity

  • Building what-if 2-dimensional sensitivity analysis
  • Adding scenarios and perform sensitivity analysis to a five year forecast model
  • Building Tornado Chart

The course is designed for:

  • Any accounting or finance professional, with moderate experience in financial modeling
  • Financial decision makers
  • Management Accountants
  • Financial Controllers
  • Strategic Planners
  • Operational Managers
  • Business Analysts
  • Participants should know how to navigate confidently in Excel and use Excel tools and functions on a regular basis.

Reminder: This is not an Excel class, but a corporate finance class with the emphasis on the building a Financial Model using Microsoft Excel blended with concepts.

Note: Participants should bring the laptop with minimum Microsoft Excel 2007. No slides will be shared, and the participants will each build the model together with the class trainer.