Business Analysis and Valuation
Unit 1: Analysis of Corporate Financial Statements
Income Statement and Balance Sheet Analysis
Ratio & DuPont Analysis Analyzing financial statements like the income statement and balance shee...
Reading an Annual Report for Financial Soundness Evaluation
An annual report is a comprehensive document that provides a detailed overview of a company's ac...
Financial Statement Analysis
Manufacturing vs. Service Sector Analyzing financial statements across different sectors requires...
Financial Statement Analysis on Excel
Financial_Statement_Analysis.xlsx
Beyond the Numbers
Business and Leadership It emphasizes the need to go beyond financial statements and understand t...
Understanding Products/Services, Clients, and Competitors
Products/Services, Clients, and Competitors It delves into the specifics of a company's offerings...
Major Shareholders, New Product/Service Launches, and International Expansion
It focuses on understanding the ownership structure of a company and its strategic plans for fut...
Revenue Mix, Top-Selling Products, and Regulatory Environment
Understanding a company's revenue sources, key products, and the regulatory landscape in which i...
Unit 2: Introduction and Approaches of Valuation
Introduction to Valuation
Philosophical Basis, Generalities, and Role This topic introduces the fundamental concepts underp...
Discounted Cash Flow (DCF) Valuation
Basis and Categorization Discounted Cash Flow (DCF) valuation is a fundamental approach that esti...
Numerical example
DCF Valuation Problem: TechGrowth Inc. Problem: TechGrowth Inc. is projected to generate the foll...
Applicability and Limitations of DCF Models
Discounted Cash Flow (DCF) models are powerful valuation tools, but their effectiveness depends ...
Relative Valuation
Basis and Categorization Relative valuation is a valuation approach that estimates the value of a...
Numerical Examples of Relative Valuation
These examples illustrate how to use common multiples in relative valuation. Example 1: Price-to...
Applicability and Limitations of Multiples
Multiples are a widely used tool in relative valuation, offering a quick and easy way to assess ...
Unit 3: Dividend Discount Model and Discounted Cash Flow Valuations
Estimating Discount Rates
Cost of Equity and Cost of Capital Estimating the appropriate discount rate is crucial for any va...
Betas
Types and Calculation Beta is a measure of a stock's systematic risk, or its sensitivity to movem...
Numericals
Numerical Examples: Estimating Discount Rates and Betas These examples illustrate how to calculat...
Dividend Discount Models (DDM)
Two-Stage and Three-Stage Dividend Discount Models (DDMs) are valuation models that estimate the ...
Numerical Example
Two-Stage Dividend Discount Model Problem: We want to value a stock, "GrowthCo," using a two-stag...
Numerical Example
Three-Stage Dividend Discount Model Problem: We want to value a stock, "EvolvingTech," using a th...
Issues in Using the Dividend Discount Model (DDM)
While the Dividend Discount Model (DDM) is a theoretically sound valuation method, its practical...
Free Cash Flow to Equity (FCFE) Discount Models
Free Cash Flow to Equity (FCFE) Discount Models are valuation models that estimate the intrinsic...
Numerical Examples
FCFE Valuation Models These examples illustrate how to value a stock using the Constant Growth FC...
FCFE Valuation vs. Dividend Discount Model Valuation
Both Free Cash Flow to Equity (FCFE) valuation and Dividend Discount Model (DDM) valuation are e...
Firm Valuation: Free Cash Flow to the Firm (FCFF)
Firm valuation, also known as enterprise valuation, aims to determine the total value of a compa...
Numerical Example
Firm Valuation using FCFF Problem: We want to value a company, "GlobalTech," using the FCFF appro...
Firm Valuation Approaches
The Cost of Capital Approach, The Adjusted Present Value (APV) Approach, Cost of Capital Vs. APV ...
Applied Valuation of a Company using Excel
This topic focuses on the practical application of valuation principles, using Excel to perform ...
Example excel file
Company_Valuation_Detailed.xlsx
Unit 4: Relative Valuation and Multiples
Relative Valuation: Concept, Popularity, and Pitfalls
Relative valuation is a valuation approach that estimates the value of an asset by comparing it ...
Standardized Values and Multiples (brief overview)
Earnings Multiples, Book Value Multiples, Revenue Multiples, and Sector-specific Multiples. This ...
Numerical Examples
Standardized Values and Multiples These examples illustrate the calculation and application of co...
Basic Steps to Using Multiples
Using multiples for relative valuation involves a structured process to ensure a sound and relia...
Real-Life Example: Relative Valuation of Chipotle (CMG)
This example demonstrates the steps involved in using multiples for relative valuation, using Ch...
Select Multiples
Overview and Application This topic provides an overview of several commonly used multiples in re...
Numerical Examples
Select Multiples These examples illustrate the calculation and interpretation of various multiple...
Reconciling Relative and Discounted Cash Flow Valuation
Both relative valuation and discounted cash flow (DCF) valuation are valuable tools, but they of...