Introduction To Financial Modelling In Excel

This course is a combination of financial theory and practical application of financial concepts in Microsoft Excel. A large component of the course will be centred around the application of the Discounted Cash Flow Model (DCF), a popular valuation method used to assess the value of projects and companies. 

At the completion of this course, participants should be able to construct a DCF Model, as well as have a good understanding of the underlying financial concepts used to build it.

Your Learning Outcomes:

• Developing a Discounted Cash Flow Model (DCF)
• Understanding and ability to apply Project
• Evaluation Criterion (NPV, IRR, Payback Periods)
• Calculating Free Cash Flows
• Estimating Beta for public and private firms.
• Estimating the Cost of Equity and WACC 
• Understanding how key variables to the DCF impact upon project and business valuation. 
• Ability to utilise Excel’s Data Tables and Goal Seek

Financial modelling is widely employed within industry because it forces us to critically think about how a business or project will perform in the future, as well as how risky we believe it to be.  Additionally, in constructing a DCF model, you will need address many of the corporate finance issues commonly encountered within industry today. 

Finance plays a central role in almost all industries, and acquiring foundational knowledge benefits almost all working professionals.  Some examples include the following:  

Investment Bankers: employ financial models to help them triangulate a “market price” for the firm/business they are trying to sell.

Engineers: use financial models to help them evaluate the feasibility of new projects, such as mine sites, oil wells, and manufacturing plants.

Lawyers: are commonly asked to develop cases regarding the assumptions used to value assets/businesses/projects, and whether these assumptions were appropriate.

Board members/Executives: need a working knowledge of basic finance to understand merger and acquisition deals, as well as how best to structure their firm.

Outline:

• Topic 1
• Developing a Discounted Cash Flow Model
• Developing a Discounted Cash Flow Model
• Topic 2
• Understanding and ability to apply Project Evaluation Criterion (NPV, IRR, Payback Periods)
• Understanding and ability to apply Project Evaluation Criterion (NPV, IRR, Payback Periods)
• Topic 3
• Calculating Free Cash Flows
• Calculating Free Cash Flows
• Topic 4
• Estimating Beta for public and private firms
• Estimating Beta for public and private firms
• Topic 5
• Estimating the Cost of Equity and WACC
• Estimating the Cost of Equity and WACC
• Topic 6
• Understanding how key variables to the DCF impact upon project and business valuation
• Understanding how key variables to the DCF impact upon project and business valuation