Valuation (419)

Valuation: The Big Picture

We begin by examining the entire process of valuation at the highest level before we dive into the details and individual processes.

Slides

Video

 

Using Excel for Valuation

Here are important settings and techniques you need to know when using excel for financial modeling.

Video

 

Building Proforma Models

It all starts with forecasting the Income Statement, Balance Sheet, and Cash Flow Statement.  Let’s begin by forecasting statements for a simple business, the Food Cart.

Video

 

Advanced Proforma Models

Building proforma models gets more complex with publicly traded businesses. In this module the proforma statements for Apple are built.

Video

 

Discount Rates

CAPM, Fama French, Multi-factor, and Build-up models are used to determine the correct interest rate to use when discounting future cash flows.

Slides and Spreadsheets

Video

 

Developing Assumptions

Garbage in = Garbage out.    Develop reasonable assumptions about future growth by first researching your company and the industry in which it operates.

Slides and Research Reports

Video

 

DCF Modeling

Discounted Cash Flow Modeling or DCF uses forecasted free cash flows to estimate value.

Slides

Video

 

DDM Modeling

Dividend Discount Modeling or DDM uses forecasted dividends to estimate value.

Slides

Video

 

Relative Valuation

Relative Value or Comps Analysis uses the values of competitors to estimate the value of a firm.

Slides

Video

 

Residual Income Modeling

Residual Income models rely on the current book value of equity to estimate value.

Slides

Video

 

From Idea to Execution

Entering a trade order to buy a stock can add to or lower an investors alpha.  Use this link to access the trading simulator.

Slides

Video

 

Ethics

Ethics is a critical element of any profession and analysts will encounter conflicts of interest.  How we navigate these conflicts defines our character and builds our reputation.  The CFA Institute has developed a comprehensive Code of Ethics.

 

 

 

Research and Podcasts