Hands-On Financial Modeling with Microsoft Excel 2019电子书

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Preface

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Section 1: Financial Modeling - Overview

Introduction to Financial Modeling and Excel

The main ingredients of a financial model

Investment

Financing

Dividends

Understanding mathematical models

Definitions of financial models

Types of financial models

The 3 statement model

The discounted cash flow model

The comparative companies model

The merger and acquisition model

The leveraged buyout model

Loan repayment schedule

The budget model

Alternative tools for financial modeling

Advantages of Excel

Excel – the ideal tool

Summary

Steps for Building a Financial Model

Discussions with management

Gauging management expectations

Knowing your client's business

Department heads

Building assumptions

Building a template for your model

Historical financial data

Projecting the balance sheet and profit and loss account

Additional schedules and projections

Cash flow statement

Preparing ratio analysis

Valuation

Summary

Section 2: The Use of Excel - Features and Functions for Financial Modeling

Formulas and Functions - Completing Modeling Tasks with a Single Formula

Understanding functions and formulas

Working with lookup functions

The VLOOKUP function

The INDEX function

The MATCH function

The CHOOSE function

Implementing the CHOOSE function

Utility functions

The IF function

The MAX and MIN functions

Implementing the functions

Pivot tables and charts

Implementing pivot tables

Pitfalls to avoid

Protect sheets

Summary

Applying the Referencing Framework in Excel

Introduction to the framework

Relative referencing

Absolute referencing

Mixed referencing

Implementing the referencing framework

Summary

Section 3: Building an Integrated Financial Model

Understanding Project and Building Assumptions

Understanding the nature and purpose of a project

Conducting interviews

Historical data

Building assumptions

General assumptions

Profit and loss and balance sheet assumptions

Profit and loss account growth drivers

Year-on-year growth

Compound annual growth rate

Balance sheet growth drivers

Days of inventory

Debtor days

Creditor days

Summary

Asset and Debt Schedules

Understanding the BASE and corkscrew concepts

Asset schedule

The straight line method

The reducing balance method

Approaches to modeling assets

The detailed approach

Asset and depreciation schedule

The simple approach

Debt schedule

The complex approach

The simple approach

Creating a loan amortization schedule

Creating the template

Creating the formulas

Using the schedule

Summary

Cash Flow Statement

Introduction to the cash flow statement

Items not involving the movement of cash

Net change in working capital

Cash flow from investment activities

Cash flow from financing activities

Balancing the balance sheet

Troubleshooting

Circular references

Creating a quick cash flow statement

Summary

Valuation

Absolute valuation

Free cash flow

Time value of money

Weighted average cost of capital

Terminal value

Calculating the present value

Relative valuation – comparative company analysis

Trading comparatives

Precedent transaction comparative

Summary

Ratio Analysis

Understanding the meaning and benefits of ratio analysis

Learning about the various kinds of ratios

Liquidity ratios

Efficiency ratios

Return on average assets

Return on average capital employed

Return on average equity

Debt-management ratios

Interpreting ratios

Understanding the limitations of ratio analysis

Using ratios to find financially stable companies

Summary

Model Testing for Reasonableness and Accuracy

Incorporating built-in tests and procedures

Troubleshooting

Understanding sensitivity analysis

Using direct and indirect methods

The direct method

The indirect method

Understanding scenario analysis

Creating a simple Monte Carlo simulation model

Summary

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