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.


Using Excel for Valuation


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

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. 

Food Cart Proforma Spreadsheet

Advanced Proforma Models


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

Apple Proforma Spreadsheet

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

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

DCF Modeling


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

Slides and Spreadsheets

DDM Modeling


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

Slides and Spreadsheets

Relative Valuation


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

Slides and Spreadsheets

Residual Income Modeling


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

Slides and Spreadsheets

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.




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.