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 Package 2: Core Fundamental Concepts
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 Package 5: Merger Modeling Topics
 Package 6: Leveraged Buyout Modeling
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 Package: Private Company Valuation
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 Package: Bank Financial Modeling
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Package 2: Core Fundamental Concepts
Our core fundamental concepts in finance involve the basic financial modeling and valuation techniques that introduce model building best practices as well as getting used to working efficiently in Excel. After understanding the basic fundamental concepts, the most important building blocks of modeling are introduced as we begin to thoroughly analyze financial statements and their implications. We introduce the underpinnings of fundamental valuation (i.e. DCF analysis) and relative valuation (comps & multiples).
Courses
 Corporate Valuation Methodologies & Corporate Finance (18 post(s))
 Basic Valuation Techniques (4 post(s))
 Basic Financial Modeling + DCF Modeling (39 post(s))
Last 10 posts
Terminal EBITDA multiple
Why is it inappropriate to assume terminal multiple expansion or contraction relative to the current year?
Why is it inappropriate to assume terminal multiple expansion or contraction relative to the current year?
How does noncontrolling interest affect the income statement model & calculation of EPS?
Hi, I understand that EPS is the net income attributed to ordinary shareholders divided by the weighted average number of ordinary shares. So EPS = (Net Income  Noncontrolling interest) / Weighted average number of ordinary shares? Do we also deduct the noncontrolling interest from the Operati... Read More
Hi, I understand that EPS is the net income attributed to ordinary shareholders divided by the weighted average number of ordinary shares. So EPS = (Net Income  Noncontrolling interest) / Weighted average number of ordinary shares? Do we also deduct the noncontrolling interest from the Operati... Read More
redeemable vs non redeemable non controlling interest (4 questions)
1. Classification: am I right to say that the redeemable portion is temporary equity hence on the > statement of equity: the net income number that shows up is after subtracting the temporary equity portion? > balance sheet: only nonredeemable portion of non controlling interest shows up under... Read More
1. Classification: am I right to say that the redeemable portion is temporary equity hence on the > statement of equity: the net income number that shows up is after subtracting the temporary equity portion? > balance sheet: only nonredeemable portion of non controlling interest shows up under... Read More
"Slow growth, mature cash cow"
Why do we classify the company as "slow growth" when we had double digit growth during the projection period?
Why do we classify the company as "slow growth" when we had double digit growth during the projection period?
Diluted earnings per share
I'm confused on why you added 1080 to net income in 2002 to get diluted EPS but didn't add anything to net income in 2003 to get diluted EPS. From my understanding, in Part 2, you said that the company had to pay $1080 worth of interest to the convertible subordinate shareholders if they did not con... Read More
I'm confused on why you added 1080 to net income in 2002 to get diluted EPS but didn't add anything to net income in 2003 to get diluted EPS. From my understanding, in Part 2, you said that the company had to pay $1080 worth of interest to the convertible subordinate shareholders if they did not con... Read More
Relevant Multiple Range slide 38
Hi, I understand that picking the relevant multiple range is subjective. On slide 38, the range for LTM EBITDA is 4.5x50x and the LTM EPS multiple is 8x9. Can you please explain your reasoning of why you choose those numbers? Like I said, I understand that it is a subjective process and that there... Read More
Hi, I understand that picking the relevant multiple range is subjective. On slide 38, the range for LTM EBITDA is 4.5x50x and the LTM EPS multiple is 8x9. Can you please explain your reasoning of why you choose those numbers? Like I said, I understand that it is a subjective process and that there... Read More
Shortcut #1
Hi, when I do alt = I do not get the sum shortcut. I think this is because I am using a mac. Do you know what command I am supposed to use instead?
Hi, when I do alt = I do not get the sum shortcut. I think this is because I am using a mac. Do you know what command I am supposed to use instead?
Minority Interest
Why is this thought of as Debt? Wouldn't it be more accurate to think about minority interest as another form of equity? They participate in ownership of the assets on the consolidated balance sheet, as well as the earnings on the consolidated income statement. It's more of an ownership, so they par... Read More
Why is this thought of as Debt? Wouldn't it be more accurate to think about minority interest as another form of equity? They participate in ownership of the assets on the consolidated balance sheet, as well as the earnings on the consolidated income statement. It's more of an ownership, so they par... Read More
Five questions (merger premiums, capex, leveraged beta, etc.)
1. Do merger of equals usually have premiums paid close to zero? 2. Page 41, to calculate Unlevered Free Cash Flow, it is used net capital expenditure, but to calculate Unlevered Free Cash Flow in the Hilb, Rogal & Hamilton case, it is used capital expenditure instead. Why? 3. When do you use... Read More
1. Do merger of equals usually have premiums paid close to zero? 2. Page 41, to calculate Unlevered Free Cash Flow, it is used net capital expenditure, but to calculate Unlevered Free Cash Flow in the Hilb, Rogal & Hamilton case, it is used capital expenditure instead. Why? 3. When do you use... Read More
how is the valuation calcualated for banks and insurance company