FNCE 3415 Valuation & Financial Statement Analysis

Schedule

Basic Excel Modeling

This module covers basic excel skills. It introduces keyboard shortcuts, referencing, formatting, functions(statistical, logical, and lookup), as well as modeling best practices. It also reviews time value of money. Students will be both proficient and efficient in the necessary Excel skills to complete the remainder of the course.

Schedule

Financial Statements Review

This lecture is a review of accounting and financial statements. It covers key concepts and terms about the balance sheet, income statement, and cash flow statement. It also covers financial reporting. Students will know how to read, understand, and extract information from required regulatory filings (such as 10-Ks, 8-Ks, or 10-Qs).

Schedule

Financial Statements Analysis

This lecture covers the calculation and understanding of standardized financial statements and financial ratio and a brief discussion financial planning and growth. We will also cover California Choppers Case. Students will be able to analyze firm performance by examining trends and comparing with competitors (or peers).

Schedule

Discounted Cash Flow Valuation: Cash Flows

Introduction to Discounted Cash flow valuation. This lecture covers the basics of projecting future cash flows. Discussion includes modeling free cash flows directly and the process of forecasting. Students will be able to read all publicly available information and evaluate a business in order project growth.

Schedule

Discounted Cash Flow Valuation: Discount Rate

Introduction to Discounted Cash flow valuation. Discussion focused on estimating terminal value and cost of capital and calculating enterprise value. Students will be able to perform company valuation using the discounted cash flow approach.

Schedule

Discounted Cash Flow Valuation: Diluted Shares and Loose Ends

Tying up loose ends in valuation, including discussion of employee equity grants, cash, mid-year discounting, cross holdings, and dual class shares. We will also discuss levered cash flows and the importance of and the tools to conduct sensitivity analysis. Students will be able to incorporate complex issues into a company valuation and perform sensitivity analysis.

Schedule

Relative Valuation: Multiples

Introduction to relative valuation using multiples. Includes discussion of selecting trading or transaction comparables, using several common multiples, and calculating LTM. Also introduces estimation of excess cash. Students will be able to perform company valuation using the multiples (aka, comparables) approach.

Schedule

Model Selection and Football Field Chart

This section finishes with a discussion of Intrinsic vs Relative valuation and creating a "football field" chart to display the ranges of your valuation relative to the market price range. Students will understand the strengths and weaknesses of each methodology and know which method to use in different situations.

Schedule

Advanced Excel

This section covers miscellaneous Excel skills including Pivot Tables, conditional formatting, basic graphing skills, concatenating, INDIRECT function, the group of TEXT based functions, and goal seek. Students will be able to solve complex problems using Excel functions and features. Watch this video for an introduction to the topics and check here for additional practice.