Excel Forecasting and Valuation Modelling for Chartered Accountants

Day one

Apply proven techniques for best practice valuation modelling

• Learn to work with the powerful and easy to follow SMART best practice modelling methodology
• Discuss and identify good vs. bad modelling techniques using real-life examples
• Greatly increase consistency amongst your team in calculation technique and presentation

Develop key theoretical concepts and build modules to free cash flow to firm and equity

• Distinguish between cashflow to firm and equity and discuss the importance for valuation analysis
• Build best practice models of a target company including:
  • Model architecture and assumptions
  • Calculations; revenue, COGS, OpEx, debt

Extend your knowledge of forecasting techniques for powerful analysis

• Learn about moving average and linear regression forecasting
• Investigate the often significant role of escalation in forecasted cashflows; nominal vs. real
• Explore the role of synergies and their potential impact on forecasted cashflows

Improve your modelling with realistic cashflow impact of working capital and related matters

• Learn how to build working capital into existing models without changing the structure
• Understand the impact of working capital on the cashflow
• Discuss common errors in modelling working capital and ways to model around them

Day two

Finalise financial statements to make a fully integrated three-way model

• Add capital programme and construct best practice depreciation calculations
• Complete P&L statement and build balance sheet and cashflow waterfall
• Explore balance sheet or net asset position and its role in valuation assessment

Learn key techniques for terminal value analysis in a valuation context

• Understand why terminal value isn’t appropriate in some valuation models
• Learn how different factors affect the impact of terminal value on a valuation
• Calculate terminal value using both perpetual growth model and other methods

Complete a best practice discounted cashflow (DCF) valuation

• Discuss NPV and IRR, understand from first principals and apply XNPV and XIRR functionality
• Identify significant errors regularly made in the use and structuring of Excel functions for NPV and IRR
• Integrate a dividend policy and restrictions into model and understand impact on valuation

Build cross-reference valuation techniques to benchmark your discounted cashflow (DCF) analysis

• Learn the pros and cons of using any single valuation technique
• Compare DCF valuation outputs with EBITDA and transaction multiples
• Review valuation reports to understand how final valuation range is determined

Integrate a powerful scenario manager and enable informed decision making with tornado charts

• Save critical time and deliver rapid analysis using our approach to scenario management
• Transform scenarios into yet another way to test the model in all scenarios
• Build confidence in your analysis through pre-programmed combinations of model inputs
• Develop tornado charts for efficient sensitivity analysis