Financial Modeling Fundamentals Highlights

Module 1: Accounting Fundamentals
  • In this course, we'll cover accounting fundamentals - including the 3 major financial statements, how to link them together, and common interview questions on accounting.
  • We'll start out by looking at Apple's financial statements and building a 3-statement model from the ground up, going through the Income Statement, Balance Sheet, and Cash Flow Statement, and then linking them together.
  • After we've created the basic model, we'll go through a set of common interview questions on accounting, including how changes to different line items affect the statements.
Module 2: Creating 3-Statement Projections
  • In this course, we’ll show you how to create a 3-statement projection model from the ground up, starting with a blank sheet in Excel and progressing all the way to a finished model.
  • We'll start by using Apple's Income Statement, Balance Sheet, and Cash Flow Statement we created previously and to analyze the historical numbers and determine trends.
  • Then we'll use those trends to determine the company's profile in future years and project all 3 statements.
Module 3: Equity Value, Enterprise Value & Multiples
  • In this sequence of videos, we'll explain Equity Value, Enterprise Value, and common valuation multiples to bridge the gap between accounting and valuation and financial modeling.
  • Buying a company is just like buying house: there are always hidden costs, and the "real" price you pay is different from the list price. Throughout this sequence, we'll use this house analogy to explain the key concepts of Equity Value and Enterprise Value.
  • Then, we'll show you how to calculate key valuation metrics and multiples and answer common interview questions.
Module 4: Valuation Overview & Comparables
  • In this course, we'll begin our discussion of Valuation with an overview of how we use public company comparables, precedent transactions, and discounted cash flow analysis to value a company.
  • We start by showing you how to select comparable companies and transactions, then how to find the data in filings, and finally how to calculate and display all the relevant metrics.
Module 5: Discounted Cash Flow Analysis
  • In this course, we'll extend our valuation model by projecting our company's cash flow into future years and building a Discounted Cash Flow Analysis from the ground up.
  • We'll start with an overview of the analysis and our basic assumptions, and then move into the projections and how to combine their net present value and the terminal value to arrive at an overall valuation.
  • Then we'll take a detailed look at how to calculate the Weighted Average Cost of Capital and go through possible interview questions on all these topics.
Module 6: Valuation Summary
  • In this course, we'll link together the valuation methodologies we've created in previous courses and use them to arrive at an overall idea of what our company is worth.
  • Once we've done that, we'll go through each methodology and summarize the conclusions we can draw and what the model tells us about whether this company is over-valued or under-valued.
  • Finally, we'll answer a set of sample interview questions on the topic of valuation, focusing on the overall methodology as well as public company comparables and precedent transactions.
Module 7: Merger Model
  • In this course, we'll create a merger model between Apple and Research in Motion from the ground up and show how you combine the income statements of the buyer and seller and the purchase assumptions to get a view of the combined company.
  • We'll start by extending our house analogy to explain the concept of a merger model, and then go into the mechanics of the model and the key acquisition effects.
  • Then, we'll take a look at some advanced additions: revenue and expense synergies, combining the balance sheets, goodwill, intangible assets, and deferred tax liabilities, and sensitivity tables.
Module 8: LBO Model
  • In this course, we'll show you how to build an LBO model from the ground up, starting with an overview of the concepts behind the model and proceeding from assumptions to finished model.
  • We'll use the analogy of buying a house to explain LBO models, and then go through the transaction and operating assumptions necessary to complete the model. Then, we'll project Apple's financial statements 5 years and get a view of what it looks like when investors sell it.
  • Finally, we'll link together the entire model, project debt and interest payments, and look at investor returns over a range of values using sensitivity tables.
Module 9: More Advanced LBO Model
  • In this course, you'll learn how to build a more advanced LBO model that incorporates all 3 financial statements, pro-forma balance sheet adjustments, and 5 tranches of debt from the revolver to PIK notes.
  • We'll start by explaining how this model differs from the more basic one that we looked at, and then go into transaction assumptions, sources & uses, purchase price allocation and balance sheet adjustments.
  • Then, we'll cover how to set up a more advanced debt schedule, build in a cash flow sweep and revolver borrowing, and conclude by linking everything together and calculating returns and sensitivity tables.