Grow your understanding of financial forecasting, corporate valuation and investment management using Excel tools.

In this programme for finance professionals we will construct several models in Excel, each related to an aspect of finance, asset management and investing, to unlock the predictive value of these models.

You are expected to be familiar with financial statements and valuation theory, and must have some experience in working in Excel. The insights gathered and enhanced understanding of certain Excel functionality will greatly assist you in the workplace to make better decisions.

Key focus areas:

Corporate valuation:

• Understanding how to structure valuation models (key input variables driving forecasts, documenting assumptions & methodologies);
• Using discounted cash flow valuation methodology to value a listed company;
• Reasonability checks using earnings-based valuation methods; and
• Sensitivity analysis to identify the key value drivers.

Estimating potential investment returns:

• Analysis of the 5-year historical returns of Facebook, Amazon, Alphabet, Apple, Microsoft and Netflix (FAAAMN companies);
• Working with historical data by filtering and transposing data;
• Comparing FAAAMN returns versus the S&P 500;
• Using INDEX MATCH and VLOOKUP functions to extract useful data;
• Calculating average returns and standard deviations;
• Calculating beta coefficients;
• Using Monte Carlo simulation to estimate future investment returns; and
• Using SOLVER function in share selection exercises.

Valuing debt instruments:

• Using Excel to calculate loan amortization schedules;
• Pricing debt instruments (government and corporate bonds) using the XIRR functions; and
• Using the GOAL SEEK function to estimate optimal bid prices.

Valuing a private company:

• Build forecasts using input variables;
• Sensivity and scenario analyses; and
• Estimating potential returns on investment.

Reverse engineering valuations:

• Calculating historical EBITDA multiples for FAAAMN companies; and
• Estimating future profits required to justify current & future share prices.