This video discusses the best practices for modeling: specifically universal color coding standards. Please watch and complete formating exercise before moving on past the basic Excel videos.
Watch on Screencast Watch full set of Basic Excel on Vimeo Back to Video ListThis video discusses the best practices for modeling: specifically proper decimals and a few general guidelines. Please watch and complete formating exercise before moving on past the basic Excel videos.
Watch on Screencast Watch full set of Basic Excel on Vimeo Back to Video ListThis video discusses the best practices for modeling: specifically using shortcuts. Please watch and complete formating exercise before moving on past the basic Excel videos.
Watch on Screencast Watch full set of Basic Excel on Vimeo Back to Video ListThis video reviews the key concepts of time value of money.
Watch on Screencast Watch full set of TVM Review on Vimeo Back to Video ListThis video reviews annuities and perpetuities.
Watch on Screencast Watch full set of TVM Review on Vimeo Back to Video ListThis video discusses how to perform TVM calculations using Excel and reviews NPV and IRR.
Watch on Screencast Watch full set of TVM Review on Vimeo Back to Video ListThis video reviews statistical functions in Excel.
Watch on Screencast Watch full set of Excel Function on Vimeo Back to Video ListThis video reviews logical and date functions in Excel.
Watch on Screencast Watch full set of Excel Function on Vimeo Back to Video ListThis video reviews lookup functions in Excel.
Watch on Screencast Watch full set of Excel Function on Vimeo Back to Video ListThis video reviews custom formatting in Excel and provides a quick wrap up of topics covered in the Basic Excel module.
Watch on Screencast Watch full set of Excel Function on Vimeo Back to Video ListThis video introduces accounting concepts, specifically we discuss key assumptions and principles of accounting.
Watch on Screencast Back to Video ListThis video finishes the discussion of accounting by looking at key constraints. We then discuss financial reporting, why do we require reporting and what type of reporting is required.
Watch on Screencast Back to Video ListThis video introduces the income statement. We review the overall concept and look at both a simplified fictional example as well as examples for real companies.
Watch on Screencast Watch full I/S video Back to Video ListThis video goes into detail on the main line items found on an income statement. Specifically we discuss revenue and operating expenses, i.e. all items above EBIT.
Watch on Screencast Watch full I/S video Back to Video ListThis video continues to discuss the income statement items below EBIT. We also discuss shares outstanding, EPS, and EBIT vs EBITDA.
Watch on Screencast Watch full I/S video Back to Video ListThis video introduces the balance sheet. We review the overall concept and look at both a simplified fictional example as well as examples for real companies. We briefly discuss the concept of debits and credits.
Watch on Screencast Watch full B/S video Back to Video ListThis video goes over the accounts on the left-hand side of the balance sheet, i.e. Assets.
Watch on Screencast Watch full B/S video Back to Video ListThis video goes over the accounts on the right-hand side of the balance sheet, i.e. Liabilities and Equities.
Watch on Screencast Watch full B/S video Back to Video ListThis video discusses the cash flow statement.
Watch on Screencast Back to Video ListThis video introduces and motivates our learning of financial statement analysis. We discuss generally what is financial statement analysis, how do we do it, and more importantly why do we do it.
Watch on Screencast Back to Video ListThis video introduces common size financial statement analysis. We discuss both vertical and horizontal analysis of the balance sheet and income statement, perform a basic example, discuss interpreting results, and lastly some caveats.
Watch on Screencast Back to Video ListThis video calculates common size financial statements for Stitch Fix.
Watch on Screencast Stitch Fix Common Size Back to Video ListThis video introduces the concept of ratio analysis.
Watch on Screencast Back to Video ListThis video goes through the four main types (groups) of ratios: Liquidity, Asset management, Leverage, Performance.
Watch on Screencast Back to Video ListThis video covers the breakdown of ROE using the Dupont identity as well as the concept of benchmarking using a time-trend or peer groups.
Watch on Screencast Back to Video ListThis video goes over common issues/concerns when performing ratios analysis. We also look at ratios for Stitch Fix and four industry peers. We conclude with an overview of the entire module.
Watch on Screencast Stitch Fix Ratios Back to Video ListThis video goes over the pdf formula sheet we discuss how each ratio is calculated, what it measures, and how to interpret.
Watch on Screencast Financial Ratios Back to Video ListThis video the first step on intrinsic valuation, financial statement modeling. We introduce the general intuition and logic behind DCF valuation and first piece of the puzzle required: Cash flows.
Watch on Screencast Back to Video ListThis video introduces the concept of unlevered cash flows or free cash flow to the firm (FCFF), including how to calculate FCFF and a basic example.
Watch on Screencast Back to Video ListThis video introduces the concept forecasting using a top-down sales approach. We discuss the primary drivers of growth as well as a general strategy to forecast growth and expenses. We also discuss choosing a forecast window.
Watch on Screencast Back to Video ListThis last video covers forecasting investments, choosing the appropriate tax rate, and ensuring our model is internally consistent. Lastly, we introduce the concept of proforma financial statements.
Watch on Screencast Back to Video ListThis video introduces the three concepts from this module: terminal value, cost of capital, and enterprise value. We discuss the infinite horizon problem as well as the perpetuity growth approach to solving the problem, including performing a simple example of the calculation.
Watch on Screencast Back to Video ListIn this video we continue our discuss of the terminal value. We begin by discussing how to best estimate the growth rate and sources for obtaining useful information. We also discuss and perform a simple example of calculating the terminal value using the exit multiple approach. The last two topics are bringing the terminal value back to the present and the pros/cons of each approach to calculating the terminal value.
Watch on Screencast Back to Video ListIn this video we introduce the concept of a discount rate and discuss the appropriate discount rate for unlevered cash flows: the Weighted Average Cost of Capital (WACC). We also discuss the key components: the cost of equity, the cost of debt, and the capital structure weights.
Watch on Screencast Back to Video ListIn this video we discuss the role of taxes in the cost of equity and cost of debt and put all the pieces together into a WACC equation.
Watch on Screencast Back to Video ListIn this video we discuss how to estimate the capital structure weights as well as both the yield and default spread approaches to estimating cost of debt.
Watch on Screencast Back to Video ListIn this video we introduce the concept of cost of equity (required/expected return) and discuss in detail the capital asset pricing model (CAPM).
Watch on Screencast Back to Video ListIn this video we discuss the risk free rate, both the general concept as well as the best proxy. We also ask whether it is appropriate to normalize the risk free rate.
Watch on Screencast Back to Video ListIn this video we discuss the concept of beta, the regression approach to estimation, issues with this approach, the types of risk beta is measuring, the relationship between equity beta, leverage and asset beta, and lastly the bottom up approach to estimating beta.
Watch on Screencast Back to Video ListIn this video we discuss the equity risk premium, the enterprise value, and wrap-up the module.
Watch on Screencast Back to Video ListThis video discusses the concept of diluted shares and the primary dilutive equities: Restricted Stock Units and Options.
Watch on Screencast Back to Video ListThis video discusses three different approaches to dealing with options. We also discuss options outstanding vs exercisable.
Watch on Screencast Back to Video ListThis video goes through a basic example of accounting for equity compensation when calculating equity value per share. Specifically, we calculate the diluted shares outstanding accounting for both restricted stock unit and option compensation.
Watch on Screencast Back to Video ListThis video is the first of three working through a few loose ends in valuation. We discuss the concept and implementation of mid-year discounting as well as how we deal with cash and whether or not to apply a premium/discount to cash.
Watch on Screencast Back to Video ListThis video is the second of three working through a few loose ends in valuation. We discuss the concept of cross holdings, the ideal solution to accounting for cross holdings, and lastly a more realistic approach.
Watch on Screencast Back to Video ListThis video is the last of three working through a few loose ends in valuation. We discuss an approach to estimating the market value of debt and how to account for dual class stock in your valuation.
Watch on Screencast Back to Video ListThis video discusses levered cash flows.
Watch on Screencast Back to Video ListThis video discusses the concept and tools for performing sensitivity analysis on our valuation.
Watch on Screencast Back to Video ListThis video discusses what makes a good valuation and big picture how to perform a good intrinsic valuation.
Watch on Screencast Back to Video ListThis video introduces the concept of relative valuation, discusses the idea of pricing vs valuing, and considers why we perform relative valuation.
Watch on Screencast Back to Video ListThis video discusses the general construct of a multiple as well how to define, describe, and apply a multiple. Lastly, we discuss the market assumption of relative valuation.
Watch on Screencast Back to Video ListThis video briefly discusses how to select comparable companies and the sampling trade.
Watch on Screencast Back to Video ListThis video discusses the P/E multiple including a detailed analysis of the key value drivers.
Watch on Screencast Back to Video ListThis video discusses the PEG, Price-to-book, EV/EBIT(DA), and EV/Sales multiples.
Watch on Screencast Back to Video ListThis video discusses period of measurement, trailing or latest twelve month (TTM or LTM) and forward looking. We also discuss selecting a statistic from the distribution.
Watch on Screencast Back to Video ListThis video goes through a basic example of applying the multiples (equity and enterprise) for a fictitious company.
Watch on Screencast Back to Video ListThis video introduces transaction comparables and goes through a fictitious example. We also discuss an approach to estimating excess cash.
Watch on Screencast Back to Video ListThis video discusses the topics for this module as well as revisiting the concept of valuation as a craft.
Watch on Screencast Back to Video ListThis video briefly reviews the intrinsic valuation approach including a discussion of the inherent market assumption, myths/truths, pros/cons, value drivers and when the approach may be more appropriate to use.
Watch on Screencast Back to Video ListThis video briefly reviews the relative valuation approach including a discussion of the inherent market assumption, pros/cons, value drivers and when the approach may be more appropriate to use.
Watch on Screencast Back to Video ListThis video discusses the gap between price and value and the approaches one can take to evaluating this gap. Lastly, we ask "Now what?" as it pertains to selecting one approach or the other.
Watch on Screencast Back to Video ListThis video introduces and discusses the football field chart as well as investment recommendations. Please see Excel Video #8-1 and Excel Video #8-2 for examples of building a football field chart.
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