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You're reading from  Hands-On Financial Modeling with Excel for Microsoft 365 - Second Edition

Product typeBook
Published inJun 2022
PublisherPackt
ISBN-139781803231143
Edition2nd Edition
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Author (1)
Shmuel Oluwa
Shmuel Oluwa
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Shmuel Oluwa

Shmuel Oluwa is a financial executive and seasoned instructor, of over 25 years, in a number of finance related fields, with a passion for imparting knowledge. He has developed considerable skill in the use of Microsoft Excel and has organised training courses in Business Excel, Financial Modeling with Excel, Forensics and Fraud Detection with Excel, Excel as an Investigative Tool, Accounting for Non-Accountants, Credit Analysis with Excel amongst others. He has given classes in Nigeria, Angola, Kenya and Tanzania but his online community of students covers several continents. Shmuel divides his time between London and Lagos with his pharmacist wife. He is fluent in 3 languages. English, Yoruba and Hebrew.
Read more about Shmuel Oluwa

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Understanding absolute valuation

It is widely accepted that the most accurate way to value an enterprise is by absolute valuation using the DCF method. Crucially, this method considers the time value of money. It also considers results throughout the life of the enterprise. This is the closest to the definition that an enterprise is worth the total cash flow it can generate.

The DCF method includes technical concepts and calculations. We will attempt to simplify those concepts; nevertheless, you will not have to repeat the complex computations required to derive some of the more complex formulas necessary for the valuation. They are readily discoverable in textbooks and over the internet.

The DCF method continues from where the three-statement method ends. It begins with the concept of free cash flow. The goal is to determine the cash flows generated by the company. However, you need to recognize that some of the cash generated is committed, inter alia, to satisfying the debt...

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Hands-On Financial Modeling with Excel for Microsoft 365 - Second Edition
Published in: Jun 2022Publisher: PacktISBN-13: 9781803231143

Author (1)

author image
Shmuel Oluwa

Shmuel Oluwa is a financial executive and seasoned instructor, of over 25 years, in a number of finance related fields, with a passion for imparting knowledge. He has developed considerable skill in the use of Microsoft Excel and has organised training courses in Business Excel, Financial Modeling with Excel, Forensics and Fraud Detection with Excel, Excel as an Investigative Tool, Accounting for Non-Accountants, Credit Analysis with Excel amongst others. He has given classes in Nigeria, Angola, Kenya and Tanzania but his online community of students covers several continents. Shmuel divides his time between London and Lagos with his pharmacist wife. He is fluent in 3 languages. English, Yoruba and Hebrew.
Read more about Shmuel Oluwa