Portfolioβ€ΊFinance & Accountingβ€ΊFinancial Modelling & Valuation
Topic

Financial Modelling & Valuation

Build financial models and value businesses. Tests revenue driver modelling, three-statement linkage, and DCF valuation.

Financial modellingDCF valuationRevenue forecastingThree-statement models

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Topic Execution Guide

Financial Modeling & DCF Company Valuation

Financial modeling translates business strategies into dynamic financial projections. Investment analysts and corporate finance professionals demonstrate expertise by constructing 3-statement integrated models, calculating WACC, running DCF valuations, and building sensitivity tables.

1. Integrated 3-Statement & DCF Valuation Model

Dynamic 3-statement financial model (.xlsx) featuring historical data, 5-year projections, and Discounted Cash Flow valuation.

2. Weighted Average Cost of Capital (WACC) Calculation Sheet

Cost of Capital model calculating Cost of Equity (CAPM), Cost of Debt, and target capital structure weightings.

3. Sensitivity & Scenario Analysis Matrix

2-way Excel data tables analyzing valuation changes based on discount rates and terminal growth rate assumptions.

Frequently Asked Questions (Financial Modelling & Valuation)

How do you calculate Free Cash Flow to Firm (FCFF)?

FCFF = EBIT * (1 - Tax Rate) + Depreciation & Amortization - Capital Expenditures - Change in Net Working Capital.

What is the Gordon Growth Model for Terminal Value?

Terminal Value = (Final Year FCFF * (1 + g)) / (WACC - g), where g is the perpetual long-term growth rate.

How do you calculate WACC?

WACC = (E/V * Cost of Equity) + (D/V * Cost of Debt * (1 - Corporate Tax Rate)).

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