Certification in Advanced Financial Modeling and Equity Valuation

About Finatics

5 Months | 3 hrs/session |40 sessions | 120 hrs

Training based on MS Excel 2007 backward compatible with 2003 Rs. 65,000 (all inclusive) 10:1 Participant Trainer ratio guaranteed ! Batch size never exceeds 10!

Finatics is a startup by budding entrepreneurs providing Consulting and Training in the field of Financial Modeling, Equity Valuation, Risk Management and MS Excel. The team has a rich exposure in the mentioned areas and regularly updates content in consultation with practicing professionals to better understand current needs

About the Financial Modeling and Valuation Program

The program aims to empower participants with Model building and Valuation skills through extensive coverage of Modeling, Revenue Build-up techniques and Valuation, all applied on a Listed company! The program is structured into three parts

> > > > > > > > > >

10 : 1 Participant-Trainer ratio assures personal attention ! Follow-the-Trainer approach is never used !! 8 Days of Revision included !!

Focus on Model Building, Revenue Build-up Techniques, DCF & Reverse DCF modeling applied on a Listed Company, SOTP included ! Build an Integrated Model with in depth DCF Valuation, from Scratch ! Merger & LBO modeling included ! Build and analyze stock screening models! Build a Comparable Company Analysis Model ! No Plugs or Circular Referencing used ! A detailed analysis included !! Excel Tips/Tricks & Accelerators ensure you never use the mouse again! Comfortable pace and non-mechanical approach, guarantee a fun learning experience! Take home pack includes
150+ Excel Exercises and 200+ hard to find Keyboard Accelerators Step-by-Step DCF valuation guide (Following Mckinsey approach) Comprehensive Revenue build-up Guide Step-by-Step Trading & Transaction Comparables guide Workings and Analysis of Plugs vs Circular Referencing vs No Plugs Workings and Analysis of Depreciation, CWIP & Minority Interest schedule Performance/Credit Analysis & stock screening model LBO & Accretion/Dilution model

> Excel For Modeling covers essentials

for Model Building and Valuation and hence is the focus of the first part

> The second Part focuses on Financial

Modeling. Starting from the very basics and moving on to building an integrated model without plugs while also including advanced modeling issues!

> The third part Equity Valuation covers

in depth DCF valuation, Trading & Transaction Comparables, Accretion/Dilution, LBO Modeling and Performance Analysis

Who are the Trainers?

The Trainers have worked across projects related to Financial Modeling, Equity Valuation & Risk Management. They have also developed comprehensive industry approved financial models from scratch!

Who Should Attend?

The program is best suited for practicing professionals at an entry-mid-expert level position in the mentioned domains, as well as for advanced students of the subject

Program Structure & Training Methodology

The program is structured to make the participant well versed with the fundamentals before moving on to Model Building and Valuation. Training will be a mix of theory and Hands-on sessions

> The Participant

will NOT be working on a template!

How Will I Benefit?

On successful completion of the program the participant will be able to > Apply Microsoft Excel skills for problem solving & data modeling > Build a Fully Integrated Error Proofed Financial Model from scratch while resolving advanced modeling issues > Build and analyze stock screening Models > Value a company in different scenarios with DCF, Comparables, Accretion/Dilution Analysis and LBO Analysis

Part 1
Excel for Modeling

Part 2
Financial Modeling

Part 3
Equity & Merger Valuation

> Valuation and

Model Building will involve a Listed Company!

10%
Excel Time savers & Essentials Commonly used Functions Conditional Operations Conditional Look-up Nesting, Charting, Scenarios ,Goal Seek, Solver and Sensitivity Analysis Error Proofing Techniques

25%
Introduction to Modeling Best Practices in Modeling Modeling techniques Building a 3 statement Model Building a fully integrated Financial Model Advanced Modeling issues resolved

65%
Extensive Revenue Build-up techniques DCF valuation Extensive Theory & Application Performance Analysis Trading & Transaction Comparables Merger modeling & valuation

> Theory would

comprise 25-30% of the Program

Certification in Advanced Financial Modeling and Equity Valuation

4 Months | 4 hrs/session | 32 sessions | 128 hrs

Modeling & Valuation of a listed company Included ! 10 Case Studies too!

Financial Modeling refers to the process of building a structure that integrates the Balance Sheet, Income Statement, Cash Flow Statement and supporting schedules to enable decision making in areas like, Business Planning and Forecasting, Equity Valuation, Credit Analysis/Appraisal, Merger/acquisition analysis, Project Appraisal etc. In each of the above areas, success of the deliverable to a large extent depends on the quality of the Financial Model. Merger modeling aims to determine whether a transaction will create or destroy value. Together they are an inseparable tool for the Finance professional and can be used in a wide array of situations On successful completion of the module you will be able to
Apply DCF & Reverse DCF Valuation for a listed company Apply Trading Comparables on a set of companies Build a Full-fledged Financial Model from Scratch Resolve advanced Modeling Issues and Analyze tricky items Use MS Excel for Data Modeling and Problem Solving Present results with Sensitivity Analysis & well formatted Charts

Other Details
> Suitable for Professionals

Value companies with Precedent Transaction Analysis Develop an LBO model from scratch Perform an Accretion/Dilution Analysis Apply performance and Credit Analysis techniques Understand and Apply Revenue build-up techniques for Valuation and Market Sizing Decode Financial jargon and uncover popular misconceptions

and advanced students alike

> Option of weekday or

weekend batches
> Fast Paced option available > Additional discounts Offered

for groups over 10 only

Day 1

Excel Time Savers & Essentials

Day 4

Modeling fundamentals,

> Manipulating rows and columns with shortcuts > Creating, Deleting, Renaming, Hiding/Unhiding sheets &

Techniques, Approaches & Basic model

> What is Financial Modeling ? > Best practices in Model Building > Analysis of Plugs vs Circular Referencing vs No Plugs > The Anatomy of a financial model: A birds eye view > Why the Percentage of Sales technique is incorrect > Approaches to model building Cash Flow drives Balance sheet vs

> Learning Excel will not

an ongoing process

be a one-time event but throughout the program

Formatting Sheet Tabs

> Applying number formats > Manipulating the view - Zooming, Split windows, Freeze > > > > > > >

Panes & maximizing workable area The Power of Custom Views Using the Paste Special box Using the Go-to Special box Introduction to Keyboard Accelerators Generating compatibility reports Creating multi-dimensional formulas with Referencing Case Study

> The focus on Modeling

Fundamentals and Issues ensures the participant develops a strong foundation for Advanced Modeling

Balance Sheet drives Cash Flow vs Hybrid approach > The Common Size statement (Vertical & Horizontal Analysis) > Basic 3 statement model with simplified Assumption sheet, Debt/Interest and Fixed Asset/Depreciation Schedule

Day 2
> > > > > > > >

Day 5-7

Model Building Fully

Excel for Modeling Part 1

integrated model Part 1

> Extracting data from the Annual Report and other sources > The Assumption/Control Sheet > Fixed Asset/Depreciation Schedule (Waterfall Type) > The concept of Maintenance & Expansion Capex > Capital Work in Progress Schedule > Working capital schedule

> A horizontal and vertical

analysis gives a holistic picture of a companys performance

> Auto-Sum, Cumulative sum, COUNT, COUNTA, COUNTBLANK

AVERAGE, MAX, MIN, ROUND & ABS Conditional operations: Using SUMIF, COUNTIF and AVERAGEIF Using VLOOKUP & HLOOKUP Using the TRANSPOSE & SUMPRODUCT Functions Date Functions: DATEDIF, YEARFRAC, YEAR, MONTH and EOMONTH Unleash Custom Number formats Conditional Formatting Nesting with the IF function: Using IF, AND & OR Case Study

> A waterfall type

performance

Debt/Depreciation schedule gives a more realistic view of future

Day 8

Model Building Part 2

> Long Term Debt Schedule (Waterfall Type) > What are Debt Covenants ? Can they be modeled? > Analysis of Cash Reserves and Application > Equity Schedule Dealing with New Issues, buybacks &

Day 3

> Valuation theory covers

principles of Value busters as well ! Creation and myth-

Excel for Modeling Part 2

> Types of Errors and their causes > 5 powerful shortcuts for Tracing errors and Formula Auditing > Using Iferror to dodge Errors > Using Data Validation to prevent errors > Working with Named Ranges: Advanced Issues Resolved > Sensitivity Analysis with Data Tables > Creating, Merging and Summarizing Scenarios > Using Goal Seek for circular problems > Using Solver to create optimization models > Charting - Commonly used charts, 3Axis, formatting

Warrants/ESOPS > Modeling & Analysis of Minority Interest

Day 9-11

Model Building Part 3

> Investments & Loans and Advances Schedule > Short Term Debt Schedule Advanced Issues resolved! > Amortization Schedule > Modeling & Analysis of Intangibles > Treatment of dividends while modeling > Integrating it all without plugs > Error Proofing the model > Case Study

> Exhaustive discussions

on Revenue build-up participant can build client ready Valuation Models techniques ensure the

techniques & maintaining formats in previous versions

> Recording and Running Macros

>

Modeling and Valuation of a listed company included !!

Certification in Advanced Financial Modeling and Equity Valuation

4 Months | 4 hrs/session | 32 sessions | 128 hrs Analysis of Continuing Value

Day 12

Valuation Fundamentals & FAQs

Day 21

> Reverse DCF

complexity in application!

> Why do share prices move up ? > Valuation methods in brief > Why DCF ? Are dividends important ? > Do Dividends & Share Buybacks create value ? > What is Value Creation? Does DCF really work ? > Significance of EVA and MVA ? > A Birds Eye view of the Enterprise DCF method > So what is SOTP/Multi-business valuation ?

> Deriving, applying & reconciling the Value driver approach > Private Equity Approach: The Exit Multiple > Testing and sanitizing the Exit Multiple > Estimating continuing growth rates and RONIC > How much should Continuing Value contribute ? > Case Study (CV)

modeling is considered esoteric due to its

Day 22

Calculating, Interpreting and

>

Modeling and Valuation of a listed company included !!

Day 13-15

Comprehensive Analysis &

Pitching your results

> Calculating Enterprise Value > Calculating Equity Value and Value per Share > Performing a Sensitivity Analysis > Can DCF give a year-on-year value per share? Yes ! > The Valuation Football field Determining a range of values > The right pitch Getting ready for some tough questions!

Application of Revenue Build-up techniques

> 3 approaches of building the backbone of your Valuation > Determining the forecast horizon > Statistical vs Top-Down vs Bottom-up vs Hybrid > Which Statistical approach do I choose Average vs Moving

> Extensive theory on

FCF, WACC and

Continuing Value ensure that you can dodge pitfalls in real world application

> > > > >

Average vs CAGR vs Regression vs Exponential Smoothing vs Time Series Analysis When do statistical approaches fail ? Why are Qualitative build-ups better ? Competitive Advantage Periods and Fade Rates Revenue build up of 4 Sectors Case Study

Day 23-24

Reverse DCF,

Performance analysis and Presentation

> The concept of Reverse DCF > Building a Reverse DCF model > Performance Analysis: ROCE vs ROIC, ROIC Tree, The Cash

> Trading Comparables

include myth-busters, and a Step-by-step guide to application and interpretation of Multiples Why P/E is Overrated

Day 16

Analysis of Beta

Conversion Cycle, Economic Profit, Degree of Operating, Financial & Combined Leverage & Credit Analysis Presenting your Results with Charts

> Systematic vs Unsystematic risk > What is beta and where can it be used ? > Determinants of beta > 2 ways of calculating Raw beta > The process of Unlevering and relevering beta > The concept and application of Bottom-up beta > Which beta to be used for valuing a firm/equity ? > Case Study | Calculate & Analyze the above for a listed company

Day 25-27
> Why use Multiples?

Trading & Transaction

Comparables (Merger/Deal Comps)

> Understanding the equation: Two approaches to use > > > > > > > > > >

> Transaction
Acquirer

Comparables reveal the control premium paid by

Day 17-18

Analysis of Free Cash Flows

> Which Cash Flow do I Choose FCF(F) vs FCFE vs CCF > The right Treatment of Taxes > Top-down & bottom-up methods of calculation > Why the Equity DCF method fails in comparison to the

Enterprise method ? > Case Study (FCF)

Day 19-20

Analysis of WACC

> > > > >

> WACC Basics & Popular misconceptions busted > Extrapolating each component of the equation > Stub period discounting &the mid-year adjustment factor > Types of Risk premiums Country Risk, Market Risk, Credit Risk

Multiples Forecasting the multiple vs Forecasting the Price Identifying the Peer Set What are comparable companies? Choosing the right multiple - Equity vs Enterprise Multiples Calculating and Analyzing P/E, P/B, P/FCFE, EV/Sales, EV/EBITDA, EV/EBIT & EV/FCFF Sector Specific Multiples EV/Capacity, EV/Customer etc. Pitfalls in estimation: Understanding P/E & PEG Why EV/EBIT is the best multiple Normalizing Earnings & Multiples Calculating LTM/TTM & Calendarization Calculating Fully diluted shares Case Study - Application on a listed set of companies Why use Transaction Comps Collecting relevant data Analysis of Control Premium Pitfalls in estimation Case Study Application

> Merger Modeling is just

not about accretion or dilution in EPS

> LBO Modeling - The

Private Equity way of Valuation !

> The Valuation Football

Field is used to determine a fair value range for the company in question

& Size premium

> Estimating the Cost of Equity: The right approach to MRP > Estimating cost of Preference Capital: Preference Equity > Estimating cost of Convertible Debt & FCCBs > Pitfalls in estimation > The right approach to estimating Continuing WACC > Case Study (WACC)

Day 28-32
LBO Modeling

Accretion/Dilution &

> Stock Screening

Models are used to filter out stocks based on Financial & market related parameters!

> Deal Structuring Cash vs Stock vs Debt > Projecting the Buyers and Targets IS & BS > Modeling Synergies > The Consolidated Statements > Premium Paid & Accretion/Dilution Analysis > LBO vs Recaps vs MBOs vs RLBOs > Deal Assumptions & Making Projections > Debt Structuring > Introduction to the APV approach > Exit Strategy & IRR calculations

Day 21

Analysis of Continuing Value

> Continuing Value Basics > Popular misconceptions busted > The Gordon growth Model

Certification in Advanced Financial Modeling *Includes Intermediate Excel and Equity Valuation Other Programs Offered
15 day program in Financial Modeling & Equity Valuation | 15 days | Rs. 12,500
The Crash program focuses on preparing the participants for entry level positions in quality KPOs, Research firms and Brokerage houses. Covering areas like Excel, Model Building and Equity Valuation

Why FINATICS ?

>

Why should I choose FINATICS ?

Unlike other Training programs which claim personal attention despite a 40-60:1 Participant-Trainer ratio, we maintain a strict 10:1 !! Course Content regularly upgraded: We are always on the lookout for new techniques through regular discussions with Industry experts, recruiters and delving into literature by popular academicians Our standard course is of a comfortable duration in easily digestible doses (although we do offer a fast paced version, on demand). The Models are developed by our team from scratch and we are hence best equipped to explain every single detail to make sure that the participant is a Model Developer and not just an End User. Most training institutes use plugs or circular referencing to balance the Balance sheet ! (and of course, they never tell you about it !!) A plug is an equation resulting from circular reasoning to forcefully tally the Balance sheet. It defies accounting principles, makes analysis of critical items virtually impossible while over-simplifying the entire process. We also include a detailed analysis of the same. Advanced Modeling Issues: Items like Capital Work in Progress, Minority interest, Deferred taxes, Leases, preference capital & FCCBs should be given their due with a thorough analysis of drivers and impact on each statement. Most institutes conveniently over look the same by keeping such items constant or assuming a relationship with Sales/COGS! Detailed Analysis of Revenue build-up techniques (This is what Valuation is all about!) Most institutes only focus on sequential growth (Statistical approaches) for forecasting performance this makes the future nothing but a replica of the past. The same will be reflected in any kind of Performance Analysis. Such an approach will be a mere eyewash irrespective of the number of rows used !! The number of Excel shortcuts, tips and tricks covered will go far beyond the Help menu (Keyboard accelerators are not found in the Help menu). The focus is on Excel Logic and not the Syntax!

1o day program in Equity Valuation | 10 days | Rs. 8,500

The program focuses on Equity Valuation alone taking the participant through Excel, Dissecting an Annual report, DCF valuation and Comparables (Relative Valuation), and Report Writing

Excel Combo Pack | 7 days | Rs. 5,000

The program covers Basic to Advanced Excel suited for data management & Analysis following a Mile-Wide Inch- Deep approach

Certification in Advanced Excel | 11/2 Months | Rs. 9,000

Starting from the very basics the module delves into some of Excels most powerful features and functions. Meant for Data Analysis and data modeling

>

Why do you stress on the Model Building part ?

Most training institutes make you work on templates or claim to teach you how to build one in a week or so. This is just not possible, as the entire exercise demands a very thorough knowledge of Financial Statements, Modeling Techniques and MS Excel. The entire process takes at least 40-60 hours leave alone Valuation! Remember: The value of a company does not lie in the Valuation Sheet but the 6-9 sheets before it ! For more download FAQs on the same at www.finaticsonline.com Participant-Trainer ratio.

Certified Excel Expert | | Rs. 20,000

21/2

Months

Our Flagship program! Covers almost everything you will ever need with an astonishing level of Width and Depth. The 2 page Table of contents is a must see!