BUILDING FINANCIAL MODELS

Live-Online Training: N250,000.00
Classroom Training: N 350,000.00
3 - 4 participants: 5% discount
5 or more participants: 10% discount

 (Available also for Customised Training by Duration, Venue & Fee) 

(PARTICIPANTS MUST BE WITH THEIR COMPUTERS)

Programme Description               

Financial modeling demands a logical, consistent approach. This workshop builds a financial analysis and a valuation model through a series of logical and practical stages.

 Upon completion, delegates will have a comprehensive understanding of advanced modeling, as well as how each technique can practically be applied through:

• Building a financial model from a blank sheet
• Designing models which minimize errors
• Writing models which can be maintained and augmented in the future
• Developing models with advanced techniques such as risk,

 Course Contents

DAY ONE

Financial Analysis and Valuation

• Different approaches to valuation
• Financial analysis and valuation framework model
• Useful Excel methods, features and techniques
• Common pitfalls and mistakes in Excel.

Alternative Model Review

• Model Structure and Planning
• Model design and structure – key stop
• Planning the equity valuation model
• Required sheets, calculations and DAYs.
• Five essential auditing techniques.

Completing and Checking the Financial Analysis/Valuation Template

• Adding Cash Flows and Ratios
• Structured model with a menu and accounting statements
• Calculating key financial ratios

 DAY TWO

Adding Cash Flow and Ratios to Template

• Non-cash Flow Valuation
• Non-cash flow methods
• Accounting methods
• Dividend discount models
• Market-based methods – EPS and multiples
• Peer groups
• Calculating Accounting and Market Value on Template.

Forecasting and Equity Valuation

• Forecasting Methods
• • Review of forecasting methods
  • Macro forecasting
  • Linear methods
  • Review of historical performance
  • Relationship between company and financial strategy
  • Identifying and forecasting key drivers
  • Linkages and modeling problems
• Reviewing Performance and Adding a Forecast.

 DAY THREE

The Case Template and Deriving Forecast

Financial Statements.

• Free Cash Flows
• • Derivation of free cash flow
  • Checking model results and redefining forecast
  • Reasonableness of forecast and results.
  • Adding Free Cash Flow to the Model.
  • Cost of Capital:
  • Alternative theories – bonds and arbitrage pricing theory
  • Capital Asset Pricing Model constituents
  • 0pp0Discussion and agreement on WACC inputs
  •  Asset and equity betas and risk
  •  Mathematical derivation
• Deriving Beta from Data and Adding WACC to Case
• • Initial Equity Valuation:
  • Methods of adding terminal value
  • Producing an equity valuation
  • Comparison to existing share price
• Adding Equity Valuation to the Template.

Risk, Targeting and Other Layers

• Alternative Cash Flow Valuation
• Time varying WACC
• Adjustments to value
• Adjusted Present Value (APV) method
• Existence and addition of financial and operational synergies
• Reconciliation to economic profit
• Adding APV to the Template

Risk and Sensitivity

• Understanding of risk and multiple answers
• Sensitivity and tables
• Creating sensitivity graphs
• Scenario planning based on economic climate
• Alternative scenario methods

 DAY FOUR

Testing the Models with Different Sensitivity and Risk Matrices

• Optimum Structure and Targeting
• Achieving a target valuation
• Goal seeking method
• Testing valuation with leverage and structure
• Targeting the Case to Improve Valuation Sensitivity
• Management Reporting and Model Review:
• Management reporting and summary
• Suggestion for other improvements to the valuation model
• Final audit

 DAY FIVE

• Help and user assistance
• Securing and protection
• Documentation and maintenance.
• Application of macro to financial models
• Revision