Financial Modeling with Advanced Valuation Techniques

1. Title
Subtitle
Presenter – Instructor Name
Financial Modeling and Advanced Valuation
Presenter – Ankur Kapur
Introduction to Financial Modeling

2. Know your instructor
Ankur is a Finance domain expert and has over twelve years of experience in
valuations, M&A, research and portfolio management. He currently manages over
$100 million assets and classifies himself as active portfolio manager and his area
of expertise includes equity, F&O, fixed income and portfolio management.
Ankur has worked with global companies such as American Express Financial
Advisors, McKinsey and Ernst & Young. He is an alumnus of Hindu College and
Delhi School of Economics. He is also a CFA from CFA Institute, USA and CFP from
FPSB India.
Ankur has trained 500+ students in Financial Modeling globally.
Ankur Kapur – CFA, CFP
http://www.edureka.co/financial-modeling

3. What will you learn today?
 Why Financial Modeling ?
 Course Objective
 Course Benefits
 Who should take this course ?
 Case: Beta calculation
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4. Course Introduction

5. Course Introduction
Advanced Valuation and Financial Modeling Course is an online live training program that can
enable you to build a comprehensive understanding of valuation and also become an expert in
excel modeling
http://www.edureka.co/financial-modeling
Course Objectives
1. acquire advanced financial modeling techniques
2. expertise and in-depth knowledge on various methods of
valuation.
3. Gain technical skills as well as analytical and decision-making
discretion in any finance job.

6. Course Benefits
By attending this program, you will:
 Deepen your understanding of the valuation concepts you apply daily
 Re-focus / re-learn the financial theory behind estimating value
 Further understand and enhance your knowledge of valuation theory
and potential application
 Question common practices and identify common mistakes and
misunderstandings
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7. Who should take this course
1. Commerce graduate
2. MBA students
3. Financial and Business analysts
4. Financial controllers, managers and modelers
5. Chief Financial Officers
6. Risk Managers
7. Chartered Accountants
8. Corporate treasury managers
9. Middle office staff
10. General Managers
11. Fund Managers
12. PE Fund Managers
http://www.edureka.co/financial-modeling

8. Course Content
 Advanced Excel Features and Techniques
 Financial Statement & Analysis
 Cost of Capital
 Stock Valuation Models
 DCF Modeling
 Special Situation - Private Company Valuation
 Mergers & Acquisitions
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9. How do you practically calculate
‘BETA’

10. Estimating the cost of equity – beta overview
What is Beta?  A measure of how much a company’s stock moves with the market
 Beta is a result of comparison to a “market” return. Make sure you
understand which market comparison it is based upon (e.g. local vs. global)
Why is Beta
important?
 Beta is a measure of investment risk that helps us to estimate the returns
required for an equity investment
 It helps us to define the non-diversifiable “risk” of a security
How to
calculate Beta
 Beta is estimated by regressing a company’s stock returns against an index
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11. Estimating the cost of equity – beta calculation
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 Raw regressions should use at least 60 data points (e.g., five years of monthly returns). Rolling betas should
be graphed to examine any systematic changes in a stock’s risk.
 Raw regressions should be based on monthly returns. Using shorter return periods, such as daily and weekly
returns, leads to systematic biases.
 Company stock returns should be regressed against a value weighted, well-diversified portfolio, such as the
S&P 500 or MSI World Index.

12. Use industry/peer results to refine beta estimate
To estimate beta based on comparable companies, calculate unlevered betas to develop industry beta estimate
and then re-lever with target capital structure
Step 1
» Select a comparable benchmark
Step 2
» Estimate the benchmark’s Beta
Step 3
» Uniliver the Benchmark’s Beta
Step 4
» Lever the Beta to reflect the subject’ company’s financial leverage
http://www.edureka.co/financial-modeling

13. Course Details
http://www.edureka.co/financial-modeling
Edureka's Financial Modeling with Advanced Valuation Techniques course:
• Online Live Courses: 21 hours
• Assignments: 15 hours
• Project: 15 hours
• Lifetime Access + 24 X 7 Support
Go to www.edureka.co/financial-modeling
Batch starts from 14 November (Weekend Batch)
Time: 7:00AM to 10:00AM

14. Thank You
Questions/Queries/Feedback
Recording and presentation will be made available to you within 24 hours