Corporate Financial Modelling: Valuation Sensitivity and Reporting

by Alastair Day
access120 days access
cpd hours4 CPD hours
price£75+vat

This course will enable you to:

  • Generate cash flows attributable to debt providers and shareholders
  • Use historic data to calculate discount rates for net present value calculations
  • Build a flexible financial model that can calculate different futures, circumstances and outcomes efficiently
  • Consider the needs of different audiences and produce financial reports accordingly

Building a functional financial model is one thing but building a sophisticated financial model can elevated your business and provide you with vital information on financial analysis, loan sizing, debt restructuring and valuation.

Using a historic spreadsheet model, which includes a financial forecast, this course looks at how to further develop the model to add valuation and reporting. It will lead you through a series of spreadsheet examples and the steps required to further develop your own model.

Corporate Financial Modelling: Valuation Sensitivity and Reporting is the third CPD course in a three-part series.

Corporate Financial Modelling: Setting up Financial Models set out a methodology for building models in Excel.

Corporate Financial Modelling: Building Forecasts and Cash Flows leads you through a series of steps required to create your own model.

Free cash flow

  • What is the methodology for a basic valuation?
  • How do we use the cash flow statement?
  • What is free cash flow?
  • What is the time value of money?
  • How do we deal with a varying interest rate?

Cost of capital

  • What are the components of WACC?
  • What data sources can we use?
  • What are the limitations of WACC?
  • What is the capital asset pricing model?
  • What is asset beta and leveraging?
  • Example: Sector beta

Initial valuation

  • What are terminal values?
  • Discounted cash flows refresher
  • What are the common mistakes?
  • What are the required functions?
  • Comparison to market value
  • What are the components of value periods?

Sensitivity

  • How can we use scenarios?
  • Can we use multiple values?
  • How do we use scenario manager?
  • How do we use multiple calculations?
  • How do we use data tables?
  • How do we use complex tables?

Reports and completion

  • What are the common charting failures?
  • How can we use composite charts?
  • How can we use dynamic charts?
  • How do we create a report template?
  • How do prepare for model completion?
  • Documentation

Alastair has worked in the finance industry for more than thirty years and has extensive experience of financial modelling, finance and leasing. Alastair was previously a director of a start-up structured finance company, which grew rapidly and was subsequently sold to a public company.

Later, Alastair established Systematic Finance as an independent consultancy to concentrate on assignments in structured finance, leasing and financial model development.

Past projects have included investment analysis, debt restructuring, valuation, aircraft leasing, power and project finance models prepared for a variety of clients. In addition, Alastair designs and delivers courses covering financial modelling, credit analysis and equipment leasing.

He is the author of standard modelling textbooks such as Mastering Financial Modelling, Mastering Risk Modelling, Mastering Cash Flow and Valuation Modelling and Mastering Financial Mathematics in Excel, together with a number of technical leasing and credit books.

Alastair has a degree in German and Economics from London University and an MBA. He has held positions as an associate lecturer at the OUBS and the ifs University College (Chartered Institute of Bankers).

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