In this introductory module, you’ll learn what “financial modeling” means and the core concepts required to understand the rest of this course, including the time value of money, Present Value and Net Present Value, the Discount Rate, and the Internal Rate of Return (IRR).

You’ll learn how to use these concepts to make investment decisions based on examples of apartment sales and trips to Jupiter.

Number of Lessons: 9

Templates and Resources: Course Study Plans; Excel Templates for WACC, IRR, PV, and NPV; Full Written Guide

In this module, you’ll learn the fundamental concepts of accounting, including the three financial statements, cash vs. non-cash revenue and expenses, and how companies record short-term and long-term changes.

You’ll also learn about more advanced topics, such as U.S. GAAP vs. IFRS, the differing treatments of operating leases, and net operating losses (NOLs) and deferred taxes.

Number of Lessons: 20

Templates and Resources: 3-Statement Model “Interview Question” Template; Shorter Templates for Lease and Tax Concepts; Detailed Written Guide

This module gives you a summary of the financial statements and practice interview questions so you can test your knowledge.

The lessons here also teach you about financial statement analysis, including key metrics such as Free Cash Flow, Working Capital, ROE, and ROIC.

Number of Lessons: 12

Templates and Resources: 3-Statement Model “Interview Question” Template; 3-Statement Model for Target

In this module, you’ll complete 3-statement modeling case studies based on Monster Beverage in the U.S. and Stadler Rail AG in Switzerland.

These two case studies both start with complete or partially filled templates so that you can focus on the projections, statement links, and key drivers.

Number of Lessons: 8

Templates and Resources: 3-Statement Models for Monster and Stadler Rail

You’ll complete a 3-statement model for Coles, a grocery retailer in Australia, starting from a blank Excel sheet in this module.

You’ll learn how to find and input data, simplify the statements, and make reasonable forecasts under a strict time limit. You will use the output of this model to answer questions about the company’s key metrics, such as Return on Capital (ROC), and the possible returns you might earn from investing in it.

Number of Lessons: 7

Templates and Resources: 3-Statement Model for Coles (“Raw” and “Formatted” versions)

In this module, you’ll learn how to calculate Equity Value, Enterprise Value, and valuation multiples for companies that follow U.S. GAAP and IFRS, based on examples for Goodyear and Michelin.

You’ll start by learning the core concepts behind Equity Value and Enterprise Value, including diluted shares and the “bridge,” and then you’ll move into valuation multiples based on Income Statement and Cash Flow Statement metrics.

The lessons after this cover more advanced topics, such as Leases, Equity Investments, Noncontrolling Interests, Pensions, and NOLs in Enterprise Value. LTM financial metrics and the calendarization process for projections are also featured.

Number of Lessons: 17

Templates and Resources: Valuation Multiple Excel Files for Goodyear and Michelin; Detailed Written Guide

In this module, you’ll complete a 3-hour valuation and DCF case study based on Steel Dynamics, a steel manufacturing company in the U.S., and you’ll learn how to project Free Cash Flow, calculate the Discount Rate, estimate Terminal Value, and use Public Comps and Precedent Transactions.

You’ll start from a blank Excel sheet, enter the data from the company’s filings, and decide on the best model setup and projection methods, based on open-ended case study instructions that require judgment and discretion from you.

Number of Lessons: 21

Templates and Resources: Valuation/DCF Model for Steel Dynamics; Detailed Written Guide

In this optional module, you’ll learn how to use a valuation in an investment banking pitch book, hedge fund stock pitch, and equity research report, and you’ll learn about less-common valuation methodologies, such as the Levered DCF, Dividend Discount Model, and Sum of the Parts Analysis.

You’ll also learn about alternative treatments and variations of the standard Unlevered DCF, including one that counts all Leases as “capital” and an IFRS-based valuation and DCF for a steel company in China.

Number of Lessons: 7

Templates and Resources: Investment Banking Pitch Book; Hedge Fund Stock Pitch; Equity Research Report; Excel files with DCF Variations (Levered DCF, Dividend Discount Model, Future Share Price Analysis, and an IFRS-Based DCF)

In this module, you’ll learn the fundamentals of mergers and acquisitions (M&A), including several short exercises in the beginning and a 60-minute version of a full merger model for Builders FirstSource’s $2.5 billion acquisition of BMC Stock Holdings.

You’ll learn about why M&A deals take place, how to calculate EPS accretion/dilution, how to calculate the purchase price and determine the deal financing, and how Equity Value, Enterprise Value, and valuation multiples change in deals.

Number of Lessons: 12

Templates and Resources: Two Simplified M&A Templates; Merger Model for Builders FirstSource / BMC; Detailed Written Guide

In this module, you’ll learn how to complete a 3-hour merger model for Builders FirstSource’s $2.5 billion acquisition of BMC Stock Holdings.

In addition to the more advanced merger model, including the Balance Sheet combination, you’ll complete an IRR vs. Discount Rate analysis, a DCF/Valuation, a Contribution Analysis, and a Value Creation Analysis.

Number of Lessons: 10

Templates and Resources: Full Merger Model with Supplemental Analyses; Client-Ready Deal Presentation

In this module, you’ll get an introduction to leveraged buyouts and LBO models, including a case study of Bain Capital’s leveraged buyout of NichiiGakkan in Japan.

These models are based on companies in different regions (Europe, Asia, and North America) and industries; you’ll also practice with a “paper LBO model” common in private equity interviews and test yourself with a set of interview questions about LBO math.

The models range from 30-minute to 90-minute completion times, so you can learn the most important points in a time-efficient manner.

Number of Lessons: 19

Templates and Resources: Simple LBO Model; Paper LBO; 60-Minute LBO Model; 90-Minute LBO Model for NichiiGakkan; Detailed Written Guide

You’ll complete a 3-hour LBO modeling test based on Apollo’s leveraged buyout of the Great Canadian Gaming Corporation (GCGC) in this module.

You’ll learn how to set up the statements, make transaction assumptions, project the financials, build a debt schedule, and calculate the returns, factoring in management earn-outs and a variable exit year.

This more advanced case study is closer to what you would do on the job and in private equity (PE) interviews, and it tests both your modeling abilities and your skill in judging industry dynamics and unit economics.

Number of Lessons: 12

Templates and Resources: Full 3-Statement LBO Model for GCGC

In this optional module, you’ll learn about topics relevant to groups such as DCM (Debt Capital Markets), Leveraged Finance (LevFin), and Equity Capital Markets (ECM).

The primary case study company in this module is Netflix, and the case is based on a debt vs. equity financing decision for them.

Other topics include a pricing and yield analysis of Netflix’s bonds, an IPO model for Stripe, a Follow-On (FO) Equity model for Netflix, and a simple example of private company valuation differences based on a VC-backed Software-as-a-Service (SaaS) company.

Number of Lessons: 12

Templates and Resources: Debt vs. Equity Model for Netflix; IPO Model; Follow-On Model; Bond Pricing Model; Private Company Valuation Model; Detailed Written Guide