Introduction to Company Valuation
- Why value a company?
- Company valuation - Theoretical framework
- The investor's perspective
- What drives a firm's value?
The technical tools you need when valuing a company
- Calculating Unlevered free cash flows
- Using an appropriate discount factor
- Estimating cost of debt
- Estimating cost of equity
- Forecasting future cash flows
- Caclulating Terminal value
- Discounting future cash flows
- Calculating Enterprise and Equity value of the firm
Learn how to build a Discounted Cash Flow model in Excel - Introduction
- Learning by doing - Learn how to value a company - Case study introduction
- A quick summary of the various stages of a complete DCF valuation
- Let's go through the structure of the DCF model we will create in Excel
- A glimpse at the company we are valuing - Cheeseco
Forecasting of key P&L items
- Modeling the top line of the financial model
- This is how you can build flexible financial models in Excel
- Modeling other items: Other revenues and Cogs
- Modeling other items: Operating expenses and D&A
- Modeling other items: Interest expenses, Extraordinary Items and Taxes
Forecasting of key Balance Sheet items
- How to forecast balance sheet items - The practical and easy to understand way
- A key concept for finance practitioners - the "Days" methodology
- Learn how to calculate "Days"
- How to use "Days" in order to project the future development of some BS items
- Forecasting Property, plant & equipment, Other assets and Other liabilities
Creating clean output sheets
- Excel best practices! Create a good-looking and clean output sheet in your model
- Applying what we learned in practice - Populating the P&L sheet
- This is how you can create a clean output Balance Sheet in your financial model
- Completing the Output BS Sheet For the Historical Period
Learn how to calculate Unlevered Free Cash Flows and Net Cash Flows
- Learn how to calculate unlevered free cash flows
- Important! Reconcile UFCF to Net Cash flow
- A very useful lesson! Learn how to calculate cash flows
- Arriving to actual net cash flow figures and performing a check with cash
- The fast and effective way to modify multiple cell references in Excel
Calculating present value of cash flows within the forecast period
- Introducing weighted average cost of capital and perpetuity growth rate
- Learn how to find the present value of future cash flows in financial models
Calculating continuing value, enterprise value and equity value of the business
- Calculating continuing value and enterprise value of the business
- Final steps! Calculate equity value of the business under consideration
Additional analyses accompanying the financial model
- Excel tools in practice - sensitivity analysis for WACC and perpetuity growth
- Excel tools in practice - An application of Goal Seek
- Recap of the financial model with charts and hypothesis testing
- Congratulations! You made it!
- Introduction to Mergers & Acquisitions
Valuation of Tesla
- Organizing external inputs in a 'Drivers' sheet
- The input data we will work with
- Forecasting Tesla's expected deliveries
- Comparing delivery figures with the ones of industry peers
- Estimating an average selling price of Tesla vehicles
- Calculating automotive revenue
- Peer comparison: Gross profit %
- Calculating automotive gross profit
- Calculating automotive cost of sales
- Forecasting 'energy' and 'services' revenue
- Calculating 'energy' and 'services' gross profit and cost of sales
- Forecasting operating expenses
- Building a fixed asset roll forward: estimating Capex
- Building a fixed asset roll forward: D&A schedule
- Peer comparison: D&A as a percentage of revenues
- Calculating DSO, DIO, DPO
- Producing a clean P&L output sheet
- Fill in the P&L output sheet
- Calculating investments in working capital
- Forecasting unlevered free cash flow
- Forecasting other assets
- Forecasting other liabilities
- Completing unlevered free cash flow
- Modeling Tesla's financing needs in the forecast period
- Calculating net income
- Bridging unlevered free cash flow to net cash flow
- Balancing the Balance sheet
- Estimating Weighted average cost of capital (WACC)
- Performing discounted cash flow valuation (DCF)
- Calculating enterprise value, equity value, and price per share
- Final comments
- Next steps
