Financial Modeling and Valuation: A Practical Guide to Investment Banking and Private Equity 1st Edition

Written by the Founder and CEO of the prestigious New YorkSchool of Finance, this book schools you in the fundamental toolsfor accurately assessing the soundness of a stock investment. Builtaround a full-length case study of Wal-Mart, it shows you how toperform an in-depth analysis of that company's financial standing,walking you through all the steps of developing a sophisticatedfinancial model as done by professional Wall Street analysts. Youwill construct a full scale financial model and valuationstep-by-step as you page through the book.

When we ran this analysis in January of 2012, we estimated thestock was undervalued. Since the first run of the analysis, thestock has increased 35 percent.  Re-evaluating Wal-Mart9months later, we will step through the techniques utilized by WallStreet analysts to build models on and properly value businessentities.

• Step-by-step financial modeling - taught using downloadableWall Street models, you will construct the model step by step asyou page through the book.
  • Hot keys and explicit Excel instructions aid even the noviceexcel modeler.
  • Model built complete with Income Statement, Cash FlowStatement, Balance Sheet, Balance Sheet Balancing Techniques,Depreciation Schedule (complete with accelerating depreciation anddeferring taxes), working capital schedule, debt schedule, handlingcircular references, and automatic debt pay downs.
  • Illustrative concepts including detailing model flows help aidin conceptual understanding.
  • Concepts are reiterated and honed, perfect for a novice yetdetailed enough for a professional.
  • Model built direct from Wal-Mart public filings, searchingthrough notes, performing research, and illustrating techniques toformulate projections.
• Includes in-depth coverage of valuation techniques commonlyused by Wall Street professionals.
  • Illustrative comparable company analyses - built the right way,direct from historical financials, calculating LTM (Last TwelveMonth) data, calendarization, and properly smoothing EBITDA and NetIncome.
  • Precedent transactions analysis - detailing how to extractproper metrics from relevant proxy statements
  • Discounted cash flow analysis - simplifying and illustratinghow a DCF is utilized, how unlevered free cash flow is derived, andthe meaning of weighted average cost of capital (WACC)
  • Step-by-step we will come up with a valuation on Wal-Mart
• Chapter end questions, practice models, additional case studiesand common interview questions (found in the companion website)help solidify the techniques honed in the book; ideal foruniversities or business students looking to break into theinvestment banking field.