FINANCIAL MODELING AND VALUATION Using Excel and VBA

Financial Modeling refers to the process of building a structure that integrates the Balance Sheet, Income

Statement, Cash Flow Statement and supporting schedules to enable decision making in areas like, Business Planning

and Forecasting, Equity Valuation, Credit Analysis/Appraisal, Merger/acquisition analysis, Project Appraisal etc. In

each of the above areas, success of the deliverable to a large extent depends on the quality of the Financial Model.

The program aims to empower participants with Model building and Valuation skills through extensive coverage of

Modeling, Revenue Build-up techniques and Valuation all applied on a Listed company!

The the program is structured into three parts –

− ‘Excel For Modeling’ covers essentials for Model Building and Valuation and hence is the focus of the first part

− The second Part focuses on ‘Financial Modeling’. Starting from the very basics and moving on to building an

integrated model

− The third part – Equity Valuation, covers DCF valuation, Trading Comparables (Relative valuation) and Performance

Analysis

Preparation of Cash Flow Statement, Various valuation techniques, Merger and accounting Methods, Methods of

Consolidation of Balance sheet and Income statement ,Depreciation Schedule, Capital Work in Progress Schedule,

Long Term Debt Schedule Investments Schedule, Short Term Debt Schedule, Amortization Schedule, Schedule for

Loans and Advances, Free Cash Flows (FCFF, FCFE), WACC, Terminal Value, Sensitivity analysis, Fair Value

Calculation, Forecast of Financials:

Learning Out Come:

TEMPLATE DESIGNING for

Relative Valuation

· Basic rule of template

designing

· Use of Data Validation in

Template designing

· Use of ISerror & ISNA

· Protection in template

designing

· Use of Name in Template

designing

FINANCIAL MODELLING

· Why excel for Financial Modeling?

· How to build transparent and flexible

model

· Use of reference, name in building

Financial model

· Building DCF, FCFE and FCFF model

· Use of Indirect, match and ISERROR

function

· Use of Switches and assumption sheet

· Use of spinner and scroll bar to build

flexibility in model

Use of MACRO

· Introduction to Macro

· Use of Macro in financial modeling

· Understanding VBA

· Loop and condition statement

· Preparing Amortization chart using

VBA

· Preparing User Define Function

· Working with Add ins and why its

required