Investment Banking: Financial Analysis and Valuation from Coursera

What's inside

Syllabus

Course Introduction and Module 1: Financial Spreads & Adjustments

In this module you will explore the concept of comparability of company financial information, a key building block of valuation. The primary application of that concept is the development of the financial spread template, which is used to standardize the presentation of company financial and market information within accounting periods and across companies. Also addressed in this module is the calculation of fully diluted shares and adjusting financial statements to consider the impact of one-time, non-recurring and unusual items.

Module 2: Introduction to Valuation Analysis and Comparable Public Companies Analysis

What determines a company's stock price? Placing a value on companies is a key tool for M&A analysis. This module will present the main techniques available to estimate a company's value, including multiples-based and cash flow-based valuation methods. These valuation tools will be presented using the most up-to-date Finance theory, and real-world examples.

Module 3: Comparable Precedent Transaction Analysis

Valuation analysis is a major part of the work that investment banks do when advising companies involved in M&A deals. This module will dive deeper into using comparable precedent M&A transactions to establish another perspective on a company’s expected valuation in an M&A context. The similarities and differences between comparable public companies analysis and transactions comparables analysis will be presented, as well as how to correctly calculate transaction valuation statistics. Lastly, we will take what we have learned about public company and transaction comparables to begin to develop a valuation summary for an existing public company.

Module 4: Discounted Cash Flows

This module will present how to build a discounted cash flow analysis, a fundamental valuation technique, as well as the concepts of financial forecasting, free cash flow, weighted average cost of capital, terminal value and present value.

Course Conclusion

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Explores industry-standard techniques and tools of investment banking and corporate finance

Taught by Robert Metzger and James Bertram, both esteemed professionals in the finance industry

Provides a comprehensive overview of financial statement analysis and valuation techniques

Develops practical skills that are directly applicable to roles in investment banking and corporate finance

May require prerequisite knowledge in accounting and finance, though this is not explicitly stated

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 Investment Banking: Financial Analysis and Valuation with these activities:

Review Accounting Principles

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Review the fundamental principles of accounting to strengthen your understanding of financial statements and their analysis.

Browse courses on Financial Reporting

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Revisit key accounting concepts, such as assets, liabilities, equity, revenue, and expenses.
Review the accounting equation and its implications for financial statement analysis.
Practice analyzing simple income statements and balance sheets.

The Intelligent Investor

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Read this classic book on value investing to gain insights into the principles of financial analysis and investment decision-making.

View The Intelligent Investor Third Edition,... on Amazon

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Read the book and take notes on key concepts, such as intrinsic value, margin of safety, and diversification.
Apply the principles of value investing to your own investment analysis.

Walkthrough of Valuation Techniques

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Follow guided tutorials or online courses to gain a deeper understanding of different valuation techniques and their applications.

Browse courses on Valuation Methods

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Identify the most common valuation techniques used in investment banking and corporate finance.
Learn the key steps involved in conducting a discounted cash flow analysis.
Practice applying multiples analysis to value companies in different industries.
Understand the process of comparable company analysis and its limitations.

Five other activities

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Valuation Study Group

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Join or form a study group with other students to discuss valuation concepts and work on practice problems together.

Browse courses on Valuation Techniques

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Find or create a study group with other students taking the course.
Meet regularly to discuss course material, solve problems, and prepare for exams.
Share notes, resources, and insights with your group members.

Financial Statement Analysis Practice

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Solve practice problems and case studies to improve your ability to analyze financial statements and make informed investment decisions.

Browse courses on Financial Statement Analysis

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Download practice financial statements from company websites or financial databases.
Calculate key financial ratios and analyze trends over time.
Develop financial spreadsheets to perform sensitivity analysis and valuation calculations.
Present your findings and recommendations in a clear and concise manner.

Valuation Workshop

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Attend a workshop led by industry experts to learn about advanced valuation techniques and best practices.

Browse courses on Valuation Techniques

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Research and identify upcoming valuation workshops or conferences.
Register for and attend the workshop.
Take notes and ask questions during the workshop.
Apply the knowledge gained from the workshop to your own work.

Valuation Blog Post

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Write a blog post or article that summarizes your understanding of a particular valuation technique or concept.

Browse courses on Valuation Techniques

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Choose a valuation topic that you are interested in writing about.
Research the topic thoroughly and gather data from credible sources.
Write a clear and concise blog post that explains the topic to a general audience.
Share your blog post on social media or other platforms.

Valuation Model Project

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Develop a comprehensive financial model to value a real-world company using industry-standard techniques.

Browse courses on Financial Modeling

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Select a publicly traded company that you are interested in analyzing.
Gather financial data from the company's financial statements and other sources.
Build a financial model using Excel or another financial modeling software.
Perform a valuation analysis using multiple techniques, such as discounted cash flow and comparable company analysis.
Write a report summarizing your findings and valuation结论.

Career center

Learners who complete Investment Banking: Financial Analysis and Valuation will develop knowledge and skills that may be useful to these careers:

Financial Analyst

Financial Analysts use financial statement analysis and valuation techniques to make recommendations on investments. This course will provide you with the skills you need to perform these tasks effectively. You will learn how to analyze financial statements, conduct ratio analysis, and value companies using a variety of methods. This course will help you build a strong foundation for a career as a Financial Analyst.

See salaries and explore the career path for Financial Analyst

Equity Research Analyst

Equity Research Analysts use financial statement analysis and valuation techniques to make recommendations on stocks. This course will provide you with the skills you need to perform these tasks effectively. You will learn how to analyze financial statements, conduct ratio analysis, and value companies using a variety of methods. This course will help you build a strong foundation for a career as an Equity Research Analyst.

See salaries and explore the career path for Equity Research Analyst

Investment Banker

This course will provide you with the foundational elements of financial statement and ratio analysis, which are essential skills for Investment Bankers. You will also learn how to apply financial statements and forecasts within the context of company valuation, utilizing common industry valuation techniques. This course will help you build a strong foundation for a career in investment banking.

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Investment Advisor

Investment Advisors use financial statement analysis and valuation techniques to make investment recommendations to clients. This course will provide you with the skills you need to perform these tasks effectively. You will learn how to analyze financial statements, conduct ratio analysis, and value companies using a variety of methods. This course will help you build a strong foundation for a career as an Investment Advisor.

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Portfolio Manager

Portfolio Managers use financial statement analysis and valuation techniques to make investment decisions. This course will provide you with the skills you need to perform these tasks effectively. You will learn how to analyze financial statements, conduct ratio analysis, and value companies using a variety of methods. This course will help you build a strong foundation for a career as a Portfolio Manager.

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Financial Planner

Financial Planners use financial statement analysis and valuation techniques to help clients make financial decisions. This course will provide you with the skills you need to perform these tasks effectively. You will learn how to analyze financial statements, conduct ratio analysis, and value companies using a variety of methods. This course will help you build a strong foundation for a career as a Financial Planner.

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Venture Capitalist

Venture Capitalists use financial statement analysis and valuation techniques to make investment decisions. This course will provide you with the skills you need to perform these tasks effectively. You will learn how to analyze financial statements, conduct ratio analysis, and value companies using a variety of methods. This course will help you build a strong foundation for a career as a Venture Capitalist.

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Investment Manager

Investment Managers use financial statement analysis and valuation techniques to make investment decisions for clients. This course will provide you with the skills you need to perform these tasks effectively. You will learn how to analyze financial statements, conduct ratio analysis, and value companies using a variety of methods. This course will help you build a strong foundation for a career as an Investment Manager.

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Hedge Fund Manager

Hedge Fund Managers use financial statement analysis and valuation techniques to make investment decisions. This course will provide you with the skills you need to perform these tasks effectively. You will learn how to analyze financial statements, conduct ratio analysis, and value companies using a variety of methods. This course will help you build a strong foundation for a career as a Hedge Fund Manager.

See salaries and explore the career path for Hedge Fund Manager

Private Equity Investor

Private Equity Investors use financial statement analysis and valuation techniques to make investment decisions. This course will provide you with the skills you need to perform these tasks effectively. You will learn how to analyze financial statements, conduct ratio analysis, and value companies using a variety of methods. This course will help you build a strong foundation for a career as a Private Equity Investor.

See salaries and explore the career path for Private Equity Investor

Corporate Finance Analyst

Corporate Finance Analysts use financial statement analysis and valuation techniques to make financial decisions for corporations. This course will provide you with the skills you need to perform these tasks effectively. You will learn how to analyze financial statements, conduct ratio analysis, and value companies using a variety of methods. This course will help you build a strong foundation for a career as a Corporate Finance Analyst.

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Management Consultant

Management Consultants use financial statement analysis and valuation techniques to help clients make business decisions. This course will provide you with the skills you need to perform these tasks effectively. You will learn how to analyze financial statements, conduct ratio analysis, and value companies using a variety of methods. This course may be useful for building a foundation for a career as a Management Consultant.

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Credit Analyst

Credit Analysts use financial statement analysis and valuation techniques to assess the creditworthiness of borrowers. This course will provide you with the skills you need to perform these tasks effectively. You will learn how to analyze financial statements, conduct ratio analysis, and value companies using a variety of methods. This course may be useful for building a foundation for a career as a Credit Analyst.

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Risk Manager

Risk Managers use financial statement analysis and valuation techniques to assess the risks of financial decisions. This course will provide you with the skills you need to perform these tasks effectively. You will learn how to analyze financial statements, conduct ratio analysis, and value companies using a variety of methods. This course may be useful for building a foundation for a career as a Risk Manager.

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Commercial Banker

Commercial Bankers use financial statement analysis and valuation techniques to make lending decisions. This course will provide you with the skills you need to perform these tasks effectively. You will learn how to analyze financial statements, conduct ratio analysis, and value companies using a variety of methods. This course may be useful for building a foundation for a career as a Commercial Banker.

See salaries and explore the career path for Commercial Banker