Developing a model:  Plan, Document, Build, Finalise
(includes a demonstration worked by the lecturer)

Balance sheets – the importance of always including a balance sheet and how to code the backing schedules for each balance sheet item

Sensitivity analysis – how easy it is to add sensitivity analysis to a well structured model after the basic model has been written  (includes a demonstration worked by the lecturer)

Exercise 4 – Adding a balance sheet.  Note that, although incomplete at this stage, the balance sheet will balance and therefore will provide a checks over the model’s completeness. 

Exercise 8 – Adding sensitivity analysis to the full financial forecasting model we now have

Income Statements – How to prepare financial forecasts of income statements

Tax computations – Show a generic tax computation and discussing the differences found in many of the different tax jurisdictions

DCF valuation – the basic theory behind DCF valuation.  Some words on the derivation of a discount rate and problems with CAPM.  How to code your DCF valuation to take account of the actual times when cash flows actually occur

Exercise 1 – Simple first draft income statement using many simplifications and assumptions

Exercise 5 – Adding a tax computation using very generic rules and avoiding the special cases found under different tax systems

Exercise 9 – Adding a DCF valuation to the model

Cash and interest calculations – working out the time weighted average cash balance to calculate interest more accurately and without creating circular references  (includes a demonstration worked by the lecturer)

Goodwill, shareholdings and dividends – how to deal with goodwill, different rules under different GAAPs.  How you can model each of the different types of share found in companies and the different ways that you can calculate ordinary and preference dividends

Presentation, graphics and data tables – how to code a data table to show the results of changes in input assumptions and how to show the results  (includes a demonstration worked by the lecturer)

Exercise 2 – Adding a cash and interest calculation and senior debt

Exercise 6 – Adding goodwill, shareholdings and dividends to the model

Exercise 10 – Adding data tables and plotting graphs from them to show the effect on the valuation of a company of  using different discount rates

Fixed asset backing schedules – the first step towards producing a balance sheet

Statutory cash flows and cover ratios – how to add some of the cover ratios and other statistics often required from a model.  How to code statutory cash flows

Quality control – how you make sure that your model actually does do what it is supposed to

Exercise 3 – Producing the fixed asset backing schedule forecasts

Exercise 7 – Adding a statutory cash flow and cover ratios 

Excel features, tips & tricks – Using some of the less well understood features of Excel (includes a demonstrations worked by the lecturer)

Summary of the day

Summary of the day

Summary of all points covered during course