Financial Modeling and Valuation: Complete Beginner to Pro from Udemy

What's inside

Learning objectives

Create an integrated financial model from scratch
Apply leading strategies for model building
Analyse financial statements
Confidently use advanced excel functions for financial modeling
Translate financial data into excel
Understand and be able to apply dcf, trading multiples and precedent transactions
Know when to use the different valuation methods

Understand the difference between book value and market value
Tailor financial models for end users
Reduce modeling errors
Apply a disciplined and structured model building approach
Become a valuation expert
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Create an integrated financial model from scratch
Apply leading strategies for model building
Analyse financial statements
Confidently use advanced excel functions for financial modeling
Translate financial data into excel
Understand and be able to apply dcf, trading multiples and precedent transactions
Know when to use the different valuation methods
Understand the difference between book value and market value
Tailor financial models for end users
Reduce modeling errors
Apply a disciplined and structured model building approach
Become a valuation expert
Show more
Show less

Syllabus

By the end of the course, you will have a firm understanding of the basics that go into constructing spreadsheet models that accurately portray a company’s future financial results.

What is financial modeling and what are its advantages? How can financial models aid decision making? What are the essential Excel functions to quickly and easily create accurate financial models?

Accounting is a structured way to present the financial position of a business. Learn about the different financial statements and how they can help paint a picture of an organisation’s financial health.

A cashflow statement shows the flow of money into and out of a business. A balance sheet shows the balances of assets, liabilities and capital of a business at a specific date.

Evaluate the financial health of a company by carrying out financial statement analysis. Learn ratio analysis to interpret financial statements and assess the strengths and weaknesses of businesses.

What is the purpose of a business valuation and in what circumstances might one be useful? What type of assets of a business need to be valued? The factors that can affect a valuation.

Learn the key differences between book value and market value and how each can be useful for different purposes. What is the relationship between book value and market value?

What is Discounted Cashflow Analysis (DCF) and how can it be used to assess the intrinsic value of a business?

Comparable company analysis is a market-based valuation analysis for publicly traded companies. It is based on the idea that companies with similar characteristics should have similar valuation multiples. Learn the steps for conducting a comparable company analysis. Learn the comps method of Trading Multiples.

Learn the comps method of Precedent Transactions.

Spreading Comps is the task of collecting and calculating relevant multiples from a number of different comparable companies.

What are the different valuation methods and their advantages and disadvantages?

What are the uses of financial models? How can they aid decision making? Tips for finding company financials and setting up financial models.

The debt schedule is designed to track every major type of debt a company has and the associated interest and payment schedules. It also helps track the cash available that could be used to pay down those debts and any interest income that could be generated from cash or cash equivalents available.

A firm's revolver is a line of short-term credit which the firm can access when it needs short-term funding to pay operating expenses. The revolver is always used for short-term financing, and is almost always paid off very quickly.

Sensitivity analysis is a way to ascertain the impact of a change in outcome for changes in inputs. It is a very important tool in financial modeling. Most of the sensitivity analyses use one or two variable inputs.

We will now set the scene and start creating a financial model. Download the financial model and follow along.

Data backed assumptions are those that are supported by data from a proper source. Qualitative assumptions are those for which any authentic data cannot be found. Therefore, these assumptions can be made using some kind of logical rationale.

In this tab the size of the target market is calculated. The data is linked form the data backed and qualitative assumptions tab.

This tab will show how customer traffic will flow over 5 years. We will project the demand for our products by the different market segments.

We will project how many customers will demand our product and service each year. We will work out the demand for 5 years.

This tab will show a table of start-up expenses and the amount of capital invested.

This is a depreciation schedule for 5 years for the company. The data is linked to the P & L statement and balance sheet.

This tab will show the P & L projection for 5 years. The data is taken from various tabs and the net profit or loss figure is then linked to the balance sheet and cash flow statement.

Cash flow for 5 years is projected. The data is linked from the start-up expenses tab and the P & L statement.

This is the last and most important statement of any financial model.

Bringing everything together we will calculate the business valuation.

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Read about what's good

what should give you pause

and possible dealbreakers

Covers DCF, trading multiples, and precedent transactions, which are essential valuation methods used in investment banking and private equity

Teaches how to build an integrated financial model from scratch, a core skill for financial analysts and corporate finance professionals

Explores financial statement analysis and ratio analysis, which are fundamental concepts for understanding a company's financial health

Develops skills in sensitivity analysis, which is a critical tool for assessing the impact of changing variables on financial outcomes

Requires learners to confidently use advanced Excel functions, which may require learners to acquire a license to use this software

Teaches how to translate financial data into Excel, which may require learners to have access to a computer with this software installed

Reviews summary

Practical financial modeling and valuation

According to learners, this course provides a solid foundation in financial modeling and valuation techniques. Students particularly praise the practical, hands-on approach, with many finding the Excel exercises and step-by-step model building to be extremely valuable for gaining real-world skills. The instructor's explanations are frequently described as clear and easy to follow, even for those starting from scratch. While many feel it delivers on its promise for beginners, some suggest it may not go into sufficient depth to reach a true "Pro" level, acting more as a comprehensive intermediate course. Overall, the reviews indicate a highly positive learning experience that directly contributes to career development.

Well-structured course with a logical flow.

"The course is very well structured, building knowledge module by module."

"I liked the logical progression from basics to building the full model."

"The pace is generally good, allowing time to digest the information and practice."

"Segments are broken down into bite-sized chunks, making it easy to follow."

Provides a strong foundation for newcomers.

"As a complete beginner to financial modeling, this course gave me an excellent starting point."

"I had very little prior knowledge, but I was able to follow along and build a working model."

"It covers the fundamentals thoroughly enough for someone with no experience to get a good grasp."

"Good for anyone starting out in finance who needs modeling basics."

Solid coverage of key valuation techniques.

"The sections on DCF, Trading Multiples, and Precedent Transactions were very informative."

"I appreciated the detailed explanation of different valuation methods and when to use them."

"The comps spreading module was particularly useful for understanding market-based valuation."

"It covers the essential valuation techniques needed in corporate finance."

Instructor is knowledgeable and engaging.

"The instructor is an expert and explains concepts with enthusiasm."

"I enjoyed the teaching style; it kept me engaged throughout the course."

"The instructor's real-world examples made the theory much more relatable."

"Very knowledgeable instructor who clearly understands the material."

Complex concepts explained clearly and concisely.

"The instructor explains complicated topics like DCF and valuation multiples in a very clear and understandable way."

"I found the explanations on financial statements and ratio analysis particularly easy to follow."

"The course does a great job breaking down the model building process into manageable steps."

"The explanations are concise and straight to the point, making learning efficient."

Excellent for developing practical, real-world skills.

"The hands-on exercises and building the model step-by-step was incredibly practical and helped solidify my understanding."

"I learned real-world financial modeling skills I can apply immediately in my job."

"The practical approach using Excel made all the concepts much easier to grasp."

"The downloadable exercises are fantastic for practicing the techniques covered in the videos."

More intermediate than advanced for professionals.

"While great for beginners, I don't feel it goes deep enough to truly reach a 'Pro' level of modeling expertise."

"It provides a solid foundation but lacks coverage of more advanced or complex modeling scenarios."

"Experienced professionals might find it too basic in parts and not challenging enough for the 'Pro' designation."

"I was hoping for more advanced techniques, but it stuck mostly to intermediate methods."

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 Financial Modeling and Valuation: Complete Beginner to Pro with these activities:

Review Accounting Principles

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Solidify your understanding of fundamental accounting principles to better grasp financial statement analysis and modeling concepts.

Browse courses on Financial Accounting

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Review key accounting concepts and terminology.
Practice analyzing sample financial statements.
Complete practice problems on ratio analysis.

Practice Advanced Excel Functions

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Sharpen your Excel skills, focusing on functions commonly used in financial modeling, such as XLOOKUP, INDEX/MATCH, and data validation.

Browse courses on Excel Functions

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Complete online tutorials on advanced Excel functions.
Practice using these functions in sample datasets.
Create a cheat sheet of commonly used functions.

Read "Financial Modeling" by Simon Benninga

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Supplement your learning with a comprehensive guide to financial modeling techniques and best practices.

View Financial Modeling, fifth edition on Amazon

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Read the chapters relevant to the current module.
Work through the examples provided in the book.
Apply the techniques to your own financial models.

Four other activities

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Build DCF Models from Case Studies

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Reinforce your understanding of Discounted Cash Flow (DCF) analysis by building models based on real-world case studies.

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Find case studies of companies undergoing valuation.
Gather the necessary financial data for each company.
Build a DCF model to estimate the company's intrinsic value.
Compare your valuation to the market price.

Develop a Sensitivity Analysis Dashboard

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Create an interactive dashboard in Excel to perform sensitivity analysis on key model inputs and visualize the impact on valuation.

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Identify the key drivers of your financial model.
Create input cells for these drivers with data validation.
Link these input cells to the model's calculations.
Use Excel charts to visualize the impact of changes.

Read "Investment Valuation" by Aswath Damodaran

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Deepen your understanding of valuation theory and techniques with a classic text on investment valuation.

View Investment Valuation, University Edition: Tools... on Amazon

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Read the chapters on DCF and relative valuation.
Study the examples and case studies provided.
Apply the concepts to your own valuation projects.

Value a Publicly Traded Company

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Undertake a comprehensive valuation project for a publicly traded company, applying all the techniques learned in the course.

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Choose a company to value.
Gather the company's financial statements and other relevant data.
Build a financial model to project future cash flows.
Perform a DCF analysis to estimate the company's intrinsic value.
Compare your valuation to the market price and write a report.

Career center

Learners who complete Financial Modeling and Valuation: Complete Beginner to Pro will develop knowledge and skills that may be useful to these careers:

Valuation Analyst

A valuation analyst specializes in performing business valuations for purposes such as mergers, acquisitions, and financial reporting. This course gives considerable focus to understanding business valuation. In this course, learners will study different valuation techniques such as discounted cash flow and precedent transaction analysis, which are vital for a valuation analyst. The course also covers how to interpret financial results and how to use different valuation methods. For these reasons, this course is particularly well suited for those wanting to work as a valuation analyst.

See salaries and explore the career path for Valuation Analyst

Investment Banking Analyst

An investment banking analyst builds financial models and performs valuations to assist in mergers, acquisitions, and capital raising activities for clients. This course covers valuation methods like discounted cash flow and trading multiples, which are often used by investment banking analysts. The step-by-step modules that teach how to construct a financial model makes this course an ideal resource for anyone interested in working in this field. Investment banking analysts need to be comfortable working with sophisticated models, and this course provides practical experience that helps build the required skills. Taking this course will help one prepare for the challenges and responsibilities that come with the role.

See salaries and explore the career path for Investment Banking Analyst

Private Equity Analyst

Private equity analysts perform financial modeling and valuation analysis to evaluate potential investment opportunities. This course, which focuses on how to build a financial model, will help those who desire to go into private equity. They will also benefit from the discussion of various techniques, including discounted cash flow and comparable company analysis. The course also covers how to interpret financial results, which is necessary for a private equity analyst. This course is ideal for anyone who wants to become a private equity analyst, as it provides the practical training needed to succeed in this role.

See salaries and explore the career path for Private Equity Analyst

Financial Analyst

A financial analyst uses financial models to interpret data, provide forecasts, and make recommendations to guide business decisions. This course is designed to build a foundational understanding of financial modeling, going over topics such as how to build a model and reduce errors. These skills are essential for a financial analyst in their day-to-day work. The course also covers financial statement analysis and valuation techniques, which are also crucial to the success of a financial analyst. Someone seeking a career as a financial analyst should take this course to gain practical training in model building and valuation. This will make them much more prepared for the challenges and responsibilities of the position.

See salaries and explore the career path for Financial Analyst

Hedge Fund Analyst

A hedge fund analyst uses financial models to support investment decisions. This course takes a hands-on approach to model building and goes over how to reduce errors. These areas of focus are particularly useful for someone hoping to succeed in this position. A hedge fund analyst will also benefit from the course's focus on financial statement analysis and valuation techniques. The course's emphasis on practical skills makes it a great way for anyone looking to become a hedge fund analyst to get ready for the job.

See salaries and explore the career path for Hedge Fund Analyst

Corporate Finance Analyst

A corporate finance analyst uses financial models to provide insights on a corporation’s financial performance and to assist with strategic decisions. This course provides training in how to build financial models, analyze financial statements, and apply various valuation techniques. This is extremely helpful for anyone interested in the corporate finance field. The course also covers how to interpret results, which is important for success as a corporate finance analyst. This type of training will help build the practical skills needed for corporate finance work.

See salaries and explore the career path for Corporate Finance Analyst

Equity Research Analyst

Equity research analysts build financial models and perform valuations to provide investment recommendations on stocks. This course goes over valuation techniques, such as discounted cash flow and using trading multiples. The approach taken in this course will help someone get ready to take on the challenges of the role. The course also covers how to interpret financial results and reduce errors in modeling, which are essential skills for an equity research analyst. Taking this course will make one much more prepared for the job.

See salaries and explore the career path for Equity Research Analyst

Financial Consultant

A financial consultant provides financial advice and recommendations to clients, often involving the use of financial models to support analysis. This course covers the fundamentals of financial model building and goes over how to interpret results, making it particularly helpful for anyone who wants to become a financial consultant. The course also includes financial statement analysis and valuation methods, which are an important part of the kind of work that financial consultants do. This practical training will make one highly competitive and better prepared for a career as a consultant.

See salaries and explore the career path for Financial Consultant

Portfolio Manager

Portfolio managers use financial models in the management of investment portfolios. The course covers financial statement analysis, valuation methods, and how to build financial models. These techniques assist portfolio managers in their decisions. Anyone who wants to pursue portfolio management will benefit from taking this course, which is designed to build essential skills, and to demonstrate how to interpret the results of financial models. This will make anyone more prepared to take on the challenges of the position.

See salaries and explore the career path for Portfolio Manager

Real Estate Analyst

Real estate analysts use financial models to evaluate potential real estate investments. This course teaches how to construct financial models and how to interpret financial results, which is particularly useful for someone who desires to go into this kind of work. In addition, the course covers financial statement analysis and different valuation techniques, which a real estate analyst will use regularly. The course is especially useful for those wishing to become a real estate analyst, due to its emphasis on practical, hands-on training.

See salaries and explore the career path for Real Estate Analyst

Business Development Analyst

A business development analyst uses financial models to assess the financial viability of new business opportunities. This course will teach anyone how to build a financial model, how to analyze financial statements, and how to use different valuation methods. These are essential skills for a business development analyst. The course also covers how to interpret results, which is vital when an analyst is evaluating new business opportunities. The course is a practical investment for anyone who wants to become a business development analyst.

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Management Consultant

A management consultant uses financial modeling skills to analyze a company's financial health and to create plans for improvement. This course provides a solid foundation in financial modeling, with a strong emphasis on building models from scratch, analyzing financial statements, and using valuation methods. These are all skills that a management consultant will use regularly in their work. The course will also help hone one's ability to interpret the results of a financial model. Taking this course helps prepare someone for the challenges of this role.

See salaries and explore the career path for Management Consultant

Venture Capital Analyst

A venture capital analyst uses financial modeling and valuation to evaluate potential investments in early-stage companies. This course may be useful to one who wants to work in this field, because the course teaches financial modeling from the ground up and explores valuation techniques. The course also includes how to interpret results and how to reduce modeling errors. The practical skills taught by the course may be useful to a venture capital analyst as they work with models from a variety of startups.

See salaries and explore the career path for Venture Capital Analyst

Credit Analyst

A credit analyst uses financial models to assess the creditworthiness of borrowers. This course may be helpful for those interested in this kind of work, because the course teaches financial model building from scratch and also goes over financial statement analysis. Also, the course looks at how to interpret financial results, which is useful for credit analysis work. Anyone looking to become a credit analyst may find this course is a useful introduction to the field.

See salaries and explore the career path for Credit Analyst

Budget Analyst

A budget analyst uses financial modeling and analysis to help organizations manage their budgets. This course covers the fundamentals of financial modeling and also goes over how to interpret results. The course also discusses how to analyze financial statements, which is a key aspect of budget analysis. While not a perfect match, this course may be useful for those who want to be budget analysts.

See salaries and explore the career path for Budget Analyst

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 Financial Modeling and Valuation: Complete Beginner to Pro.

Financial Modeling, fifth edition

Save

Comprehensive guide to financial modeling using Excel. It covers a wide range of topics, from basic spreadsheet techniques to advanced valuation methods. It is particularly useful for understanding the practical application of financial modeling concepts and building robust, error-free models. This book is commonly used as a textbook in finance courses.

Financial Modeling, fifth edition

Hardcover

$$$$

Financial Modeling, fifth edition

Kindle Edition

$$$

Investment Valuation, University Edition

Save

Provides a comprehensive overview of valuation techniques, including discounted cash flow, relative valuation, and contingent claim valuation. It is particularly useful for understanding the theoretical underpinnings of valuation and applying these techniques to a wide range of assets. This book is commonly used as a textbook in finance courses and useful reference for industry professionals.

Investment Valuation, University Edition: Tools and...

Kindle Edition

$$$

Financial Modeling and Valuation

Complete Beginner to Pro

What's inside

Learning objectives

Syllabus

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Reviews summary

Practical financial modeling and valuation

Activities

Career center

Reading list

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