Introduction to Finance, Accounting, Modeling and Valuation from Udemy

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Learning objectives

#1 best selling accounting course on udemy (learn finance and accounting the easy way)!
Analyze and understand an income statement (even if you have no experience with income statements).
Analyze and understand a balance sheet (even if you have no experience with balance sheets).
Analyze and understand a cash flow statement (even if you have no experience with cash flow statements).
Understand and use modeling best practices so you can create financial models.
Know where to get data in order to build a financial model (in depth understanding of identifying and using/navigating the best free websites and sources to build your financial model)!
Create a financial model (projecting the future) for an income statement.
Create a financial model (projecting the future) for a balance sheet.
Create a financial model (projecting the future) for a cash flow statement.
Understand valuation best practices so you can create target prices based on your financial models.
How to use discounted cash flow (dcf) and how to create the weighted average cost of capital and terminal values in order to pick target prices.

How to use p/e in order to pick target prices.
How to use p/r in order to pick target prices.
Other valuation methodologies, including ev/sales, ev/ebitda, p/b, ev/fcf, etc.
Come up with a target price based on an average of several different valuation methodologies.
Analyze the total addressable market for a company you are doing research on.
Analyze financial statements using profitability ratios: gross margin (cost of goods sold / revenue), operating margin (ebitda/ revenue), net profit margin (net income / revenue), return on assets (net income / assets) and return on equity (net income / equity).
Analyze financial statements using debt and inventory formulas: debt to assets (total liabilities/ total assets), debt to equity (total liabilities/ total equity), interest coverage ratio (ebitda / interest) and inventory days on hand (inventory / cost of good sold) * 365.
Analyze and compare companies using the following formulas: price / earnings, peg (p/e / growth), price / revenue, ev/ebitda, ev/sales, price/free cash flow and price / book.
We will do an extremely in depth professional accounting, finance, modeling and valuation analysis of linkedin using the accounting and finance methodologies used in this course (you will also have many exercises to complete that will help you understand accounting, finance, valuation and modeling).
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#1 best selling accounting course on udemy (learn finance and accounting the easy way)!
Analyze and understand an income statement (even if you have no experience with income statements).
Analyze and understand a balance sheet (even if you have no experience with balance sheets).
Analyze and understand a cash flow statement (even if you have no experience with cash flow statements).
Understand and use modeling best practices so you can create financial models.
Know where to get data in order to build a financial model (in depth understanding of identifying and using/navigating the best free websites and sources to build your financial model)!
Create a financial model (projecting the future) for an income statement.
Create a financial model (projecting the future) for a balance sheet.
Create a financial model (projecting the future) for a cash flow statement.
Understand valuation best practices so you can create target prices based on your financial models.
How to use discounted cash flow (dcf) and how to create the weighted average cost of capital and terminal values in order to pick target prices.
How to use p/e in order to pick target prices.
How to use p/r in order to pick target prices.
Other valuation methodologies, including ev/sales, ev/ebitda, p/b, ev/fcf, etc.
Come up with a target price based on an average of several different valuation methodologies.
Analyze the total addressable market for a company you are doing research on.
Analyze financial statements using profitability ratios: gross margin (cost of goods sold / revenue), operating margin (ebitda/ revenue), net profit margin (net income / revenue), return on assets (net income / assets) and return on equity (net income / equity).
Analyze financial statements using debt and inventory formulas: debt to assets (total liabilities/ total assets), debt to equity (total liabilities/ total equity), interest coverage ratio (ebitda / interest) and inventory days on hand (inventory / cost of good sold) * 365.
Analyze and compare companies using the following formulas: price / earnings, peg (p/e / growth), price / revenue, ev/ebitda, ev/sales, price/free cash flow and price / book.
We will do an extremely in depth professional accounting, finance, modeling and valuation analysis of linkedin using the accounting and finance methodologies used in this course (you will also have many exercises to complete that will help you understand accounting, finance, valuation and modeling).
Show more
Show less

Syllabus

Outline and Roadmap for the Course

Thank You Message from Chris

This course is for:

anyone interested in how accounting works (no prior accounting experience is needed).
anyone interested in how finance works (no prior finance experience is needed).
anyone interested in how modeling works (no prior modeling experience is needed).
anyone interested in how valuation works (no prior valuation experience is needed).
anyone interested in how financial ratios works (no prior financial ratios experience is needed).

Why is the income statement important and how can it help you achieve your goals? Once you understand the income statement, balance sheet and cash flow statements (all explained in this course), then we can move on to the modeling and then the valuation section of this course.

An explanation of the income statement (assumes you have no experience with this topic).

An example of an income statement (attached is an excel version of this statement).

Please find attached the income statement exercise. The instructions for the exercise are listed on the first tab in the attached Excel spreadsheet. When you have completed the exercise, please watch the next lecture for an explanation of the answers. Thanks

A discussion of the income statement exercise results.

Why is the balance sheet important & how can it help you achieve your goals? Once you understand the income statement, balance sheet and cash flow statements (all explained in this course), then we can move on to the modeling and then the valuation section of this course.

An explanation of the balance sheet (assumes you have no experience with this topic).

An example of a balance sheet (attached is an excel version of this statement).

Please find attached the balance sheet exercise. The instructions for the exercise are listed on the first tab in the attached Excel spreadsheet. When you have completed the exercise, please watch the next lecture for an explanation of the answers. Thanks

A discussion of the balance sheet exercise results.

Why is the cash flow statement important & how can it help you achieve your goals? Once you understand the income statement, balance sheet and cash flow statements (all explained in this course), then we can move on to the modeling and then the valuation section of this course.

An explanation of the cash flow statement (assumes you have no experience with this topic).

An example of a cash flows statement (attached is an excel version of this statement).

Please find attached the cash flow statement exercise. The instructions for the exercise are listed on the first tab in the attached Excel spreadsheet. When you have completed the exercise, please watch the next lecture for an explanation of the answers. Thanks

A discussion of the cash flow statement exercise results.

How are the cash flow statement, balance sheet and income statement connected?

Why is financial modeling important & how can it help you achieve your goals? Now that we understand how to analyze and create an income statement, balance sheet and cash flow statement, we can project the aforementioned financial statements. Once we are finished with the 4 valuation sections, then we will learn how to come up with the appropriate target prices for companies we are doing research on.

Please find attached a 1 page document containing 25 of my modeling and valuation best practices. Thanks

An introduction to 3 crucial (and free) sources where we can get data to create our financial model forecasts.

What is investor relations and how can the investor relations function help us to better understand companies we are considering investing in?

All investors can now get access to information at the exact same time. This lecture will explain exactly where to get this information and how to navigate several online documents, including the 10-K, 10-Q, S-1 IPO filings etc.

I used to pay thousands of dollars per month/year for Bloomberg access. I will teach you how to get almost all of that information for free!

Learn what a quarterly earnings call is and how it can help you understand investment ideas better.

This section is an extremely in depth overview of how I analyze LinkedIn (ticker: LNKD), including creating financials, forecasting financials and several different valuation methodologies, including discounted cash flow (DCF), P/E, P/R, terminal value calculation, weighted average cost of capital calculation, total addressable market analysis and more.

How can I research what a company does? What are the best resources?

How do I calculate the size of the total addressable market for LinkedIn's products, what does this mean and why is this important when analyzing a company or creating a financial model?

This lecture explains how to navigate and set up a professional financial model.

Please open the attached PDF of the LinkedIn earnings press release before viewing this lecture. Thanks

Basics on how to forecast the income statement, cash flow statement and balance sheet for my LinkedIn model.

An introduction to financial modeling (used so we can come up with target prices for the companies we analyze).

Please find attached the financial modeling exercise. The instructions for the exercise are listed on the first tab in the attached Excel spreadsheet. When you have completed the exercise, please watch the next lecture for an explanation of the answers. Thanks

An in depth discussion of the answers to the financial modeling exercise. "Learn to read financial statements like a good book!"

Now that we know how to create and model financial statements, we can learn how to value companies based on the financial statements that we created.

It is crucial that we understand what kind of investors we are or work for as growth investors value companies in different ways than value investors do.

Please find attached the 25 Valuation and Modeling Best Practices PDF. Thanks

What does discounted cash flow (DCF) mean and why is it important to helping us value companies? How can we create a DCF?

What is the terminal value and why is it crucial for us in order to value a company based on discounted cash flow analysis?

How can we calculate what rate to discount our future cash flows at? We will discuss the cost of equity and the cost of debt as part of the W.A.C.C. (weighted average cost of capital) for our target price analysis.

An example of DCF valuation applied to my LinkedIn model.

An extremely in depth discussion of the DCF valuation exercise from the previous lesson (part 1 of 2).

An extremely in depth discussion of the DCF valuation exercise from the previous lesson (part 2 of 2).

This section discusses how we can value companies that don't yet have earnings.

This lecture shows how we can calculate a target price for LinkedIn using a price to revenue target price methodology.

Please find attached the Price / Revenue exercise. The instructions for the exercise are listed on the first tab in the attached Excel spreadsheet. When you have completed the exercise, please watch the next lecture for an explanation of the answers. Thanks

A discussion of the answers to the price to revenue valuation exercise.

Why do almost all investors love valuing companies using a price to earnings valuation methodology (growth and value investors)? How can we value companies with different earnings growth rates using price to earnings?

How to pick a target price for LinkedIn using price to earnings.

Please find attached the Price / Earnings valuation exercise. The instructions for the exercise are listed on the first tab in the attached Excel spreadsheet. When you have completed the exercise, please watch the next lecture for an explanation of the answers. Thanks

An in depth explanation of the answers to the price to earnings valuation exercise.

Additional valuation methodologies, including EV/EBITDA, EV/Sales, price to book, cash flow, etc.

Taking a blended average target price based on several valuation methodologies in order to minimize the valuation margin of error is a smart strategy.

Comparing the total addressable market (T.A.M.) that we calculated for LinkedIn with our model forecast results.

Analyzing companies using different formula methodologies from these 4 categories: Profitability Formulas, Time Formulas, Comp. (Competition) Formulas and Debt Formulas.

A discussion of the following formulas:

Analyze financial statements using profitability ratios: Gross Margin (Cost of Goods Sold / Revenue), Operating Margin (EBITDA/ Revenue), Net Profit Margin (Net Income / Revenue), Return on Assets (Net Income / Assets) and Return on Equity (Net Income / Equity). Gross Margin (Cost of Goods Sold / Revenue), Operating Margin (EBITDA/ Revenue), Net Profit Margin (Net Income / Revenue), Return on Assets (Net Income / Assets) and Return on Equity (Net Income / Equity).

Analyze financial statements using debt and inventory formulas: Debt to Assets (Total Liabilities/ Total Assets), Debt to Equity (Total Liabilities/ Total Equity), Interest Coverage Ratio (EBITDA / Interest) and Inventory Days on Hand (Inventory / Cost of Good Sold) * 365.

Analyze and compare companies using the following formulas: Price / Earnings, PEG (P/E / Growth), Price / Revenue, EV/EBITDA, EV/Sales, Price/Free Cash Flow and Price / Book.

An exercise using the following formulas to analyze financial statements:

Analyze and compare companies using the following formulas: Price / Earnings, PEG (P/E / Growth), Price / Revenue, EV/EBITDA, EV/Sales, Price/Free Cash Flow and Price / Book.

A discussion of the answers to the formula questions from the previous exercise:

Analyze and compare companies using the following formulas: Price / Earnings, PEG (P/E / Growth), Price / Revenue, EV/EBITDA, EV/Sales, Price/Free Cash Flow and Price / Book.

Congratulations! You now have a good understanding of Accounting, Finance, Modeling, Valuation and Assessing Financials with Formulas! Thanks

In order to receive CPE credit for this course, you must a) complete all course content, and b) pass this qualified assessment with 70% or greater.

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Read about what's good

what should give you pause

and possible dealbreakers

Provides a foundation in accounting, finance, modeling, and valuation, making it suitable for individuals with no prior experience in these areas

Includes exercises with attached Excel spreadsheets, allowing learners to apply concepts and develop practical financial modeling skills

Covers a wide range of valuation methodologies, including Discounted Cash Flow (DCF), P/E, and P/R, providing a comprehensive understanding of company valuation techniques

Explores the analysis of financial statements using profitability ratios, debt formulas, and company comparison formulas, enhancing learners' analytical abilities

Requires learners to pass a qualified assessment with 70% or greater to receive CPE credit, which may pose a challenge for some learners

Reviews summary

Finance and valuation fundamentals for beginners

According to learners, this course offers a clear and accessible introduction to finance, accounting, financial modeling, and valuation, especially for those starting from scratch. Students found the instructor's energetic and engaging teaching style helpful in making complex topics understandable. The practical exercises and the real-world LinkedIn case study were frequently highlighted as valuable components that solidify learning. While covering the core fundamentals thoroughly, some more experienced learners noted the depth might be most suitable for beginners.

Pace is fast, depth varies by topic.

"Sometimes the pace felt a little fast, especially in the modeling sections."

"I wish some of the valuation methods had been covered in more depth."

"It's broad rather than deep, which is good for an intro but might require supplemental learning."

Best suited for those with no prior experience.

"As someone completely new to finance, this was exactly what I needed."

"The course truly starts from zero, which was perfect for me."

"If you have some background, you might find the initial sections a bit basic, but it's great for beginners."

Hands-on practice reinforces learning.

"The exercises were perfect for practicing what I learned in the lectures."

"The LinkedIn case study was incredibly useful for seeing concepts applied."

"I appreciate having the spreadsheets and being walked through a real company example."

Instructor makes complex topics approachable.

"His energy and ability to break down complex topics made learning enjoyable."

"I really enjoyed the instructor's engaging style; it kept me motivated."

"The instructor has a unique way of explaining things that just clicks."

Excellent overview of core finance concepts.

"This course gave me a solid understanding of income statements, balance sheets, and cash flows."

"I finally feel confident reading and analyzing financial statements after this course."

"It covered all the basics of accounting and finance that I needed to start."

Activities

Be better prepared before your course. Deepen your understanding during and after it. Supplement your coursework and achieve mastery of the topics covered in Introduction to Finance, Accounting, Modeling and Valuation with these activities:

Review Basic Accounting Principles

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Reinforce your understanding of fundamental accounting concepts before diving into financial modeling and valuation.

Browse courses on Accounting Principles

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Review the accounting equation.
Study the different types of accounts.
Practice journal entries.

Read 'The Interpretation of Financial Statements' by Benjamin Graham

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Gain a deeper understanding of financial statement analysis through the lens of a renowned value investor.

View The Interpretation of Financial Statements on Amazon

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Read the book chapter by chapter.
Take notes on key concepts.
Apply the concepts to real-world examples.

Analyze Financial Ratios of Public Companies

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Solidify your understanding of financial ratios by calculating and interpreting them for various public companies.

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Select three public companies from different sectors.
Gather their financial statements.
Calculate key financial ratios.
Interpret the ratios and compare them.

Four other activities

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Build a Basic Financial Model

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Apply your knowledge by creating a simplified financial model for a company of your choice.

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Choose a company to model.
Gather historical financial data.
Make assumptions about future growth.
Project the income statement, balance sheet, and cash flow statement.

Read 'Financial Modeling and Valuation' by Paul Pignataro

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Enhance your financial modeling skills with a practical guide that uses Excel.

View Putting Knowledge to Work on Amazon

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Read the book chapter by chapter.
Follow the Excel examples.
Practice building your own models.

Value a Company Using Multiple Methods

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Deepen your understanding of valuation by applying multiple valuation methodologies to a single company.

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Select a publicly traded company.
Gather its financial statements and market data.
Perform a discounted cash flow analysis.
Perform relative valuation using P/E, P/S, and EV/EBITDA multiples.
Compare the results and determine a target price.

Write a Stock Pitch

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Synthesize your knowledge by creating a compelling stock pitch for a company you have analyzed.

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Choose a company you have researched.
Summarize its business model and competitive advantages.
Present your valuation analysis and target price.
Highlight the key investment risks and opportunities.

Career center

Learners who complete Introduction to Finance, Accounting, Modeling and Valuation will develop knowledge and skills that may be useful to these careers:

Equity Research Analyst

An Equity Research Analyst analyzes public companies to provide recommendations to investors on whether to buy, hold, or sell their stock. This role requires a strong understanding of financial statements, financial modeling, and company valuation. This course will help you learn how to analyze financial statements, such as balance sheets, income statements, and cash flow statements, along with understanding modeling best practices. You will also learn to apply different valuation methodologies and derive target prices for stocks. This course enhances the skills required for an Equity Research Analyst to analyze a company thoroughly.

See salaries and explore the career path for Equity Research Analyst

Investment Analyst

An Investment Analyst researches investment opportunities and makes recommendations to portfolio managers. To be successful as an Investment Analyst, it is important to have a deep understanding of financial analysis, including valuation and financial modeling, which this course covers in depth. You will gain experience creating financial models, forecasting financial statements, and using various valuation methodologies like discounted cash flow and price to revenue. This course's focus on real-world applications, using the example of LinkedIn, provides a practical approach to learning. An aspiring Investment Analyst may find this course to be a great way to gain experience.

See salaries and explore the career path for Investment Analyst

Corporate Finance Analyst

A Corporate Finance Analyst works within a company to manage its financial planning, investments, and risk. This position requires a deep understanding of financial statements, modeling and valuation which this course provides. You will learn to analyze balance sheets, income statements, and cash flow statements. This course will teach you how to create financial models, and how to perform various valuation methodologies, including discounted cash flow. A Corporate Finance Analyst will find useful the course's focus on creating forecasts which help a company understand its future financial position.

See salaries and explore the career path for Corporate Finance Analyst

Financial Analyst

A Financial Analyst evaluates financial data to advise organizations on investments and financial planning. This role requires a strong foundation in financial statement analysis and modeling, both of which this course provides. You will learn how to read and interpret balance sheets, income statements, and cash flow statements, along with best practices for financial modeling. A Financial Analyst uses these skills to create forecasts, assess company health, and determine valuation. This course's training on discounted cash flow, price to earnings, and other valuation methods enhances the ability to conduct thorough company analysis and derive target prices.

See salaries and explore the career path for Financial Analyst

Hedge Fund Analyst

A Hedge Fund Analyst is responsible for researching and analyzing investment opportunities for a hedge fund. This career demands a strong grasp of financial analysis, modeling, and valuation, all of which are covered in this course. You will gain the skills needed to analyze financial statements, build and forecast financial models, and apply various methodologies like discounted cash flow to derive target prices for stocks. The course uses real world examples, such as the analysis of LinkedIn, which will be helpful to a Hedge Fund Analyst when researching a company.

See salaries and explore the career path for Hedge Fund Analyst

Venture Capital Analyst

A Venture Capital Analyst evaluates potential investment opportunities in startups and early-stage companies. This role requires a strong understanding of financial statements, modeling, and valuation, all of which are covered in this course. You will learn how to analyze balance sheets, income statements, and cash flow statements, and how to create financial models to forecast performance. The course's instruction on calculating target prices using different valuation techniques is highly relevant. A Venture Capital Analyst needs to assess the financial health and potential of companies, which this course prepares you to do.

See salaries and explore the career path for Venture Capital Analyst

Portfolio Manager

A Portfolio Manager is responsible for making investment decisions for a fund or a group of clients. This position requires a strong understanding of financial analysis and valuation. This course will teach you to analyze financial statements, create financial models, and apply various valuation methodologies such as discounted cash flow and price to earnings, which are essential for a Portfolio Manager's role. The course also emphasizes an understanding of different investment philosophies, which is helpful for a Portfolio Manager when making informed investment choices.

See salaries and explore the career path for Portfolio Manager

Financial Reporting Analyst

A Financial Reporting Analyst is responsible for preparing and analyzing a company’s financial reports. This role requires a deep understanding of financial statements and accounting principles, which are covered in this course. You will learn how to read and analyze balance sheets, income statements, and cash flow statements. This course will be valuable in understanding the financial health of a company. This course's emphasis on financial ratios will be useful for a Financial Reporting Analyst when assessing a company's financial information.

See salaries and explore the career path for Financial Reporting Analyst

Financial Planner

A Financial Planner helps individuals manage their finances, plan for retirement, and make investment decisions. This role requires a solid understanding of financial statements, financial planning, and investment analysis. This course provides that understanding by teaching the analysis of financial statements like balance sheets, income statements, and cash flow statements. You also learn to understand financial modeling and apply various valuation methods. A Financial Planner will find a solid foundation in financial analysis from taking this course.

See salaries and explore the career path for Financial Planner

Management Consultant

A Management Consultant advises organizations on how to improve their performance and efficiency. This may include financial performance. This role benefits from a knowledge of financial statement analysis and modeling. This course helps build a foundation in this area through the study of balance sheets, income statements, and cash flow statements. This course may be useful because you will learn to create financial models and use various valuation methodologies, which can help a Management Consultant in assessing the financial health and potential of client companies.

See salaries and explore the career path for Management Consultant

Business Development Manager

A Business Development Manager identifies new business opportunities and develops strategies for growth. This role can benefit from understanding financial analysis and valuation. Though not its primary function, this course's coverage of financial statements, modeling, and valuation methods may be useful. With a foundation in financial statements, you may be able to assess the financial viability of potential business opportunities. This course may be helpful in order to improve your ability to evaluate the financial aspects of business growth.

See salaries and explore the career path for Business Development Manager

Credit Analyst

A Credit Analyst assesses the creditworthiness of borrowers for financial institutions. This role requires a solid foundation in financial statement analysis and ratio analysis. This course may be helpful because you will gain an understanding of balance sheets, income statements, and cash flow statements, along with how to use various profitability, debt, and time formulas. A Credit Analyst will find the focus on financial ratios to be valuable in evaluating the financial health of potential borrowers.

See salaries and explore the career path for Credit Analyst

Real Estate Analyst

A Real Estate Analyst evaluates properties and real estate markets to advise on acquisitions and investments. While focusing on companies, this course may be helpful as it provides an understanding of the analysis of financial statements and financial modeling. You will learn about balance sheets, income statements, and cash flow statements, while also learning to create financial models and to perform various financial analysis metrics. A foundation in financial modeling helps a Real Estate Analyst understand the financial implications of real estate transactions.

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Budget Analyst

A Budget Analyst develops and monitors budgets for organizations, requiring a solid foundation in financial analysis. While this course does not focus on budgets, the material on analyzing financial statements may be useful. You will learn to understand balance sheets, income statements, and cash flow statements. This course may be useful to learn about financial modeling and valuation, which can help a Budget Analyst better understand the use and implications of budgets.

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Auditor

An Auditor reviews financial records to ensure accuracy and compliance. While not a focus of the course, this career path may find the material surrounding financial statements helpful. You will learn to analyze balance sheets, income statements, and cash flow statements, and how to use various financial formulas. This course may be helpful to understand the underlying financial statements that the Auditor must verify. This course may assist the auditor to analyze statements.

See salaries and explore the career path for Auditor

Reading list

We've selected two books that we think will supplement your learning. Use these to develop background knowledge, enrich your coursework, and gain a deeper understanding of the topics covered in Introduction to Finance, Accounting, Modeling and Valuation.

The Interpretation of Financial Statements

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Provides a deep dive into financial statement analysis from a value investing perspective. It classic text that teaches you how to extract meaningful insights from balance sheets, income statements, and cash flow statements. This book is particularly useful for understanding the underlying health and value of a company. It valuable resource for anyone looking to make informed investment decisions.

The Interpretation of Financial Statements

Hardcover

Putting Knowledge to Work

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Provides a practical guide to financial modeling and valuation using Excel. It covers a wide range of topics, including discounted cash flow analysis, relative valuation, and merger and acquisition modeling. This book is particularly useful for learning how to build financial models from scratch. It valuable resource for anyone looking to develop their financial modeling skills.

Putting Knowledge to Work

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Putting Knowledge to Work

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Introduction to Finance, Accounting, Modeling and Valuation

What's inside

Learning objectives

Syllabus

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Reviews summary

Finance and valuation fundamentals for beginners

Activities

Career center

Reading list

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