Valuation Modeling with Excel
Simon Benninga

Objective
Valuation Modeling with Excel teaches the essentials of Excel modeling techniques for valuation. Topics include: Building pro forma models, deriving the cost of capital, doing intelligent sensitivity analysis, making revenue projections, and valuing firm securities.

Key benefits
By attending this program, you will learn to:

  • Better understand the connection between accounting and valuation
  • Structure complex package deals
  • Build revenue projections
  • Annotate models with VBA
  • Compute cost of capital
  • Understand concepts of firm value and how to compute them
  • Finance with convertibles

The program is highly practical and emphasizes the techniques needed to implement the relevant financial concepts. In the corporate finance part of the program, case studies and other examples are used to illustrate various aspects of company valuation, including equity valuation, analysis of debt capacity and other issues especially relevant to mergers and acquisitions. Participants will work with computers during the program, so that they can practice as they learn.

This program is based on Professor Benninga's books Financial Modeling, Principles of Finance with Excel, and Corporate Finance: A Valuation Approach. Participants in the program will receive a copy of Financial Modeling.

Who should attend?
Valuation Modeling with Excel is appropriate for financial managers and analysts who want to strengthen their modeling skills. This group includes financial analysts, corporate financial managers, bankers, and portfolio managers.

Prerequisite
The program assumes that participants have a background in finance and accounting.  Since the implementation of most valuation requires a spreadsheet, participants must have experience in using Excel (advanced techniques, where necessary, will be explained during the program).

Accreditation
Amsterdam Institute of Finance is registered with CFA Institute as an Approved Provider of continuing education programs. This program is eligible for 12 CE credit hours as granted by CFA Institute. If you are a CFA Institute member, CE credit for your attendance at this event will be automatically recorded in your CE Diary.

Practical information
Laptop computers, equipped with Microsoft Excel, are required for this program. It is necessary that participants bring their own laptop, or if requested, a laptop can be provided at an additional charge.

Faculty
Simon Benninga teaches finance at Tel Aviv University and the Wharton School of the University of Pennsylvania. He is the author of the textbook for this program, Financial Modeling (3rd edition, MIT Press, 2008). Professor Benninga has published over 40 academic papers and four books. He was the editor and founder of the European Finance Review, the official journal of the European Finance Association.


For information about admission, please see our Practical Information.

Program Content
Day 1

Excel basics for finance

  • Excel financial functions:  NPV, IRR, PV, XIRR, XNPV
  • Data tables
  • Very basic VBA

Building a pro forma model

  • Mid-year discounting
  • Terminal values
  • Concepts of firm value:  enterprise value, equity value, asset value
  • Sensitivity analyses

Group project:  Building a model for a company
Class members will build a model for a company and value the company based on our pro forma model and its derived cost of capital. The model will be discussed in class and evaluated.

Review of cost of capital

Technical issues with Excel

  • Regressions
  • Array functions
  • Data manipulation and functions


Day 2

UST:  Doing a valuation “on the fly”

  • From accounting statements to free cash flows
  • Reasonable growth rates:  short vs long term
  • Cost of capital   

Case study: Building revenue projections for our company

Multiples:  Discussion and case study

Convertible valuation and case study   


Dates & Fees
November 11 - 12, 2010
€ 2,400
 
(AIF programs are not subject to VAT)