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FMEV - Financial Modeling and Equity Valuation


Registration Open!!

  • Overview
  • Modules
  • Eligibility
  • Course Objective
  • Duration/Fee

Financial Modeling & Equity Valuation

Financial Model is a mathematical model designed to represent the performance of a firm's financial asset. Model is basically is used to calculate, forecast, or estimate financial numbers. Financial Modeling relates to accounting and corporate finance applications usually involves the preparation of detailed company-specific models used for decision-making and financial analysis purpose.

Today, if you Google the term "Financial Modeling" you will get millions of hit.

Financial Modeling has become the most important skill-set for the aspiring finance professionals.

A good financial modeler must know how the three financial statements (the Income Statement, the Balance Sheet and the Cash Flow) work and linked together. They must understand corporate finance theory and be able to apply it to the valuation process. They must possess industry-specific knowledge and must think analytically and last but not least, must have strong Advance Excel skills.

The Program on, Financial Modeling & Valuation Analysis deal with its Practical Implementation. The Program encompasses Basics & Advance MS-Excel formulation and its use to make financial model from Scratch, Annual Reports of companies, and handling with the actual difficulties and error in such analysis, understanding the practical utility of Valuation Analysis.

The candidates would also be taken through the process of building financial models for projects handled by them. The Program includes classroom and online teaching with video support, Case Study, and Certification at the end.


Note: Application of all above functions on Real time datasets and its Practical implementation on day to day working platform.

Module covers Building Financial Models for Indian & US based Company from scratch

Module 1 Excel: Fundamentals

  • The Excel Dashboard
  • The Ribbon
  • Quick Access Toolbar
  • Formula Bar
  • Basic Navigating And Editing
  • Customize Excel
  • Connecting Workbooks
  • Sharing And Protecting
  • Arithmetic Function
  • Maths Functions
  • Date & Time Functions
  • Text Functions

Advance Excel



  • Advance subtotal
  • Data consolidation
  • Sumif and sumiffs
  • Countif&countiffs
  • Index
  • Offset
  • Vlookup Hlookup & Index Match
  • if Loop & Nested if
  • And & Or Loops
  • Error Handling In Excel
  • Isnumber & Iserror
  • Pivot Tables
  • Advanced Charting In Excel
  • Dynamic Charts
  • MIS Creation Form Raw Data

Module 2 Financial Markets

  • Understanding Indian & Global Markets
  • Regulators in Indian Markets and Global Markets
  • Data picking from NSE , BSE and Global Markets
  • Understanding Financial Intermediaries ( Brokers, Dealers and Investment Banks)
  • Primary Market
  • Fund Raising In Primary Market
  • IPO & Price Discovery Mechanism For IPO
  • FPO, Right Issues & OFS
  • Fixed Price and Book Building Process for IPO
  • Secondary Markets
  • Role Of Secondary market
  • Products in Secondary Market
  • Players In secondary Market
  • Global Stock Exchanges and their Indices
  • BSE & NSE Indices and Calculation Methodology
  • Trading process and settlements Cycle
  • Demat and Live Trading Sessons
  • Margin Trading & Short Sell Mechanism
  • Understanding the Financial Websites and Data Picking
  • FOREIGN CAPITAL ISSUANCE:- ADR and GDR
  • Alternate Investment Products
  • Mutual Funds
  • REITS
  • Venture Capital Funds
  • NCD's
  • ETF

Module 3 Economy Industry Company Framework

Economy Analysis



  • Understanding Macro & Micro Variables
  • In-dept. Analysis Of GDP, Inflation & Unemployment
  • Effect of Macro Economic Factors on Financial Markets
  • Global Events Tracking and Discussion
  • Understanding Fiscal & Monetary Policy
  • Economy Data picking form MOSPI,IMF, WTO ,Fred, OCED & Other Sites

Industry Analysis



  • Industry Types and Classification
  • Industry Life Cycle
  • Decoding Industry Jargons
  • Internal & External factors for different Industries
  • Participants can pick any Industry of their choice and make Industry Report

Company Analysis



  • Participants can pick any Company of their choice from Industry selected
  • Understanding the revenue mix for the company
  • MD&A Analysis
  • Management Overview
  • Major Products and Services
  • SWOT analysis
  • Sensitivity to Industry & Economy Cycles
  • Demand & Supply Analysis
  • Company Profiling as Project Submission

Module 4 Understanding the Financial Statements

Understanding Auditors Notes and Management Discussion
Steps in Financial Statement Analysis
Regulating Authorities (Indian and Global Markets)
Filing In Global Markets (SEC Filing)

In-depth Analysis of Income Statement



  • Revenue Recognition Methods
  • Expense Recognition
  • Step by Step building Income Statement
  • Depreciation Methods
  • Operating and Non-Operating Income
  • Revenue & Expense Recognition
  • Income Tax
  • Long term Lease
  • Minority Interest

Balance Sheet



  • Asset
  • Liabilities and
  • Share Holders Equity

Cash Flow Statement



  • Direct Method
  • Indirect Method

Ratio Analysis



  • Liquidity Ratios
  • Solvency Ratios
  • Profitability Ratios
  • Activity Ratios
  • Market Ratios &
  • Valuation Ratios
  • Du Pont & Extended DuPont Analysis
  • Credit Ratios & Altman Z Score

Inventory Valuation Methods



  • LIFO
  • FIFO
  • Weighted Average Cost Method

Module 5 Financial Statement Projection

Projection Of Variables



  • Bottom Up & Top Down Forecasting
  • Statistical Methods for Forecasting (Exploration, Causative and Judgmental techniques)
  • Identifying Key Performance Indicators for Projection
  • Time Series Analysis
  • I. Long Term Trend
  • II. Seasonality Factor
  • III. Cyclical factors
  • IV. Short Term Fluctuations
  • Financial Statements Modeling
  • Utilizing Excel Internal Functions ( Forecast, Growth, Linest) to Build Dynamic Models
  • Regression Based E-I-C projection with Excel
  • Model sensitivity with change in variables
  • Data Picking form Database and Spreading technique for building Financial Statements
  • Creating Control Panel for variables
  • Schedulers Building ( Depreciation, Tax, Interest, Dividend Projection)
  • DSO , DIO & DPO for Balance Sheet
  • Handling Circular references and Creating On/Off Switch
  • Creating Control Panel for variables

Module 6 Equity Valuation

Equity Valuation



  • Valuation Approach
  • I. The Net Asset Approach
  • II. The Income Approach
  • III. The Market Approach

Relative Valuation Methods



  • I. Price Multiples ( P/E, P/S , P/BV, P/CFO, P/EBITA, P/EBITDA)
  • II. Enterprise Value Multiples ( EV/EBIDTA, EV/EBIT, EV/Sales, EV/CFO)
  • III. Industry Specific Multiples ( EV/Ton, ARPU, ARPM etc)

Discounting Cash Flow Analysis



  • i. Dividend Discount Model
  • ii. FCFE and FCFF Calculation & Valuation
  • iii. Discounting Factor ( Ke, WACC)
  • iv. Beta Calculation (Levered & Unlevered)
  • v. Terminal Value Calculation
  • vi. Understand Gordon Growth Model
  • Sensitivity Analysis for the Model
  • Monti Carlo Simulation
  • Writing Valuation report

Module 7 Equity Report

  • Reading Brokerage House Reports
  • Writing Valuation Report From Scratch

Eligibility

  • Professionals MBA, CFA ,ICWAI, CFP
  • Graduates and Post -Graduates looking for career in Equity and Research,
  • Working professionals, who want to switch their career to Finance Research & Analysis Sector.

Course Objective

  • Able to build a financial model from a scratch using the best structuring techniques.
  • Projecting future years for the three main Financial Statements - (the Income Statement, the Balance Sheet and the Cash Flow)
  • Understanding Financial Markets in details ( Indian & Global)
  • Get Hands On experience in data Picking from different web sources -( IMF, WTO, Yahoo Finance, BSE, NSE etc.)
  • Advance key Excel functions to construct sound financial forecasting models.
  • Understanding Economy, Industry and Company Framework & their impact on the valuations.
  • Step by Step Analysis of Company & Projections for next five years
  • Calculating Beta, WACC( Weighted Average Cost Of Capital) on Excel
  • Interpret and Analyze the key ratios used in a financial forecast
  • Projecting B/S , Income statement and Cash Flows
  • Incorporating financial statement analysis through Ratio Analysis
  • Calculate the Free Cash Flow to Firm (FCFF) & Free Cash Flow to Equity (FCFE)
  • Calculate Equity Value Multiples: P/E, P/CF, P/BV, P/S, PEG, Dividend Yield
  • Perform Trading Multiples analysis EV/EBITDA, EV/EBIT,EV/CFO, EV/Sales
  • Equity Valuation using DDM, DCF, Relative Valuation , Residual Valuation and Regression Based Models
  • Preparing a comprehensive High Quality Report on Equity Valuation.
  • Conducting various forms of sensitivity analysis after a forecast model has been built.
  • Equity Valuation using DDM, DCF, Relative Valuation , Residual Valuation and Regression Based Models
  • Preparing a comprehensive High Quality Report on Equity Valuation

Duration & Mode

Training Modes
Mode Duration Approx.
ClassRoom / Online Regular 2 Months (Monday to Thursday)
ClassRoom / Online Weekend 3 Months (Sat & Sun)
Only Sunday 5 Months ~ 20 Sundays

Fee - INR 25,000/- (Including all Taxes)
Payment Modes : Cheque / Cash/ Credit Card / Online Transfer
Fee Includes

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