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

Product type Book

Published in Jun 2022

Publisher Packt

ISBN-13 9781803231143

Pages 346 pages

Edition 2nd Edition

Languages

Concepts

Author (1):

Shmuel Oluwa

Preface

Part 1 – Financial Modeling Overview

Chapter 1: An Introduction to Financial Modeling and Excel

Chapter 2: Steps for Building a Financial Model

Part 2 – The Use of Excel Features and Functions for Financial Modeling

Chapter 3: Formulas and Functions – Completing Modeling Tasks with a Single Formula

Chapter 4: Referencing Framework in Excel

Chapter 5: An Introduction to Power Query

Part 3 – Building an Integrated 3-Statement Financial Model with Valuation by DCF

Chapter 6: Understanding Project and Building Assumptions

Chapter 7: Asset and Debt Schedules

Chapter 8: Preparing a Cash Flow Statement

Chapter 9: Ratio Analysis

Chapter 10: Valuation

Chapter 11: Model Testing for Reasonableness and Accuracy

Part 4 – Case Study

Chapter 12: Case Study 1 – Building a Model to Extract a Balance Sheet and Profit and Loss from a Trial Balance

Chapter 13: Case Study 2 – Creating a Model for Capital Budgeting

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Valuation

There are two main approaches to valuation, which are as follows:

Relative approach: In this approach, you have the following methods:
- The comparative company method of valuation: This method obtains the value of a business by looking at the value of similar businesses and their trading multiples, the most common of which is enterprise value (EV) and earnings before interest, tax, depreciation, and amortization (EBITDA), where EV is divided by EBITDA.
- The precedent transaction method: Here, you compare the business to other similar businesses in the industry that have recently been sold or acquired. Again, you can use multiples to derive a value for your business or company.
Absolute approach: This approach estimates all future free cash flows of the company and discounts it back to today. It is called the discounted cash flow (DCF) method. Essentially, the approach considers that the worth of a company can be equated to the amount of cash it can generate after...