Introduction To Accounting Finance Modeling Valuation By Chris Haroun
Learn Finance & Accounting from Scratch by an Award Winning MBA Professor, Ivy Grad, worked @ Goldman & VC
Last updated 2022-01-10 | 4.5
- #1 Best Selling Accounting Course on Udemy (Learn Finance and Accounting the Easy Way)!- Analyze and understand an income statement (even if you have no experience with income statements).
- Analyze and understand a balance sheet (even if you have no experience with balance sheets).
What you'll learn
* Requirements
* You don’t need to have any accounting or finance experience as we will cover all of the concepts from scratch. A requirement is that you have access to and a very basic understanding of how to use Microsoft Excel as we will use Microsoft Excel in the course as we will be analyzing and creating a Balance Sheet* Income Statement and Cash Flow Statement. We will also learn how to create the following from scratch using Microsoft Excel: financial models so we can come up with target prices using Discounted Cash Flow
* the Weighted Average Cost of Capital
* Price to Earnings
* Price to Revenue
* etc. – again all from scratch (assuming you have no or some accounting/finance knowledge).
Description
- #1 Best Selling Accounting Course on Udemy (Learn Finance and Accounting the Easy Way)!
- Analyze and understand an income statement (even if you have no experience with income statements).
- Analyze and understand a balance sheet (even if you have no experience with balance sheets).
- Analyze and understand a cash flow statement (even if you have no experience with cash flow statements).
- Understand and use modeling best practices so you can create financial models.
- Know where to get data in order to build a financial model (in depth understanding of identifying and using/navigating the best free websites and sources to build your financial model)!
- Create a financial model (projecting the future) for an income statement.
- Create a financial model (projecting the future) for a balance sheet.
- Create a financial model (projecting the future) for a cash flow statement.
- Understand valuation best practices so you can create target prices based on your financial models.
- How to use Discounted Cash Flow (DCF) and how to create the Weighted Average Cost of Capital and Terminal values in order to pick target prices.
- How to use P/E in order to pick target prices.
- How to use P/R in order to pick target prices.
- Other valuation methodologies, including EV/Sales, EV/EBITDA, P/B, EV/FCF, etc.
- Come up with a target price based on an average of several different valuation methodologies.
- Analyze the total addressable market for a company you are doing research on.
- Analyze financial statements using profitability ratios: Gross Margin (Cost of Goods Sold / Revenue), Operating Margin (EBITDA/ Revenue), Net Profit Margin (Net Income / Revenue), Return on Assets (Net Income / Assets) and Return on Equity (Net Income / Equity).
- Analyze financial statements using debt and inventory formulas: Debt to Assets (Total Liabilities/ Total Assets), Debt to Equity (Total Liabilities/ Total Equity), Interest Coverage Ratio (EBITDA / Interest) and Inventory Days on Hand (Inventory / Cost of Good Sold) * 365.
- Analyze and compare companies using the following formulas: Price / Earnings, PEG (P/E / Growth), Price / Revenue, EV/EBITDA, EV/Sales, Price/Free Cash Flow and Price / Book.
- We will do an extremely in depth professional accounting, finance, modeling and valuation analysis of LinkedIn using the accounting and finance methodologies used in this course (you will also have many exercises to complete that will help you understand accounting, finance, valuation and modeling).
Course content
17 sections • 66 lectures
Thank You Message from Chris Preview 00:02
Course Introduction & Who is this Course For? Preview 03:43
This course is for:
anyone interested in how accounting works (no prior accounting experience is needed).
anyone interested in how finance works (no prior finance experience is needed).
anyone interested in how modeling works (no prior modeling experience is needed).
anyone interested in how valuation works (no prior valuation experience is needed).
anyone interested in how financial ratios works (no prior financial ratios experience is needed).
Why is the Income Statement Important & How Can It Help You Achieve Your Goals Preview 01:53
Why is the income statement important and how can it help you achieve your goals? Once you understand the income statement, balance sheet and cash flow statements (all explained in this course), then we can move on to the modeling and then the valuation section of this course.
Income Statement Explanation Preview 03:57
An explanation of the income statement (assumes you have no experience with this topic).
Income Statement Example and Analysis Preview 08:48
An example of an income statement (attached is an excel version of this statement).
Income Statement Analysis Exercise Preview 01:07
Please find attached the income statement exercise. The instructions for the exercise are listed on the first tab in the attached Excel spreadsheet. When you have completed the exercise, please watch the next lecture for an explanation of the answers. Thanks
Income Statement Analysis Exercise Answers Explanations Preview 02:57
A discussion of the income statement exercise results.
Why is the Balance Sheet Important & How Can It Help You Achieve Your Goals Preview 01:10
Why is the balance sheet important & how can it help you achieve your goals? Once you understand the income statement, balance sheet and cash flow statements (all explained in this course), then we can move on to the modeling and then the valuation section of this course.
Balance Sheet Explanation Preview 02:04
An explanation of the balance sheet (assumes you have no experience with this topic).
Balance Sheet Example and Analysis Preview 08:39
An example of a balance sheet (attached is an excel version of this statement).
Balance Sheet Analysis Exercise Preview 00:59
Please find attached the balance sheet exercise. The instructions for the exercise are listed on the first tab in the attached Excel spreadsheet. When you have completed the exercise, please watch the next lecture for an explanation of the answers. Thanks
Balance Sheet Analysis Exercise Answer Explanations Preview 02:39
A discussion of the balance sheet exercise results.
Why is the Cash Flow Statement Important+How Can It Help You Achieve Your Goals Preview 01:25
Why is the cash flow statement important & how can it help you achieve your goals? Once you understand the income statement, balance sheet and cash flow statements (all explained in this course), then we can move on to the modeling and then the valuation section of this course.
Cash Flow Statement Explanation Preview 02:08
An explanation of the cash flow statement (assumes you have no experience with this topic).
Cash Flow Statement Example and Analysis Preview 06:34
An example of a cash flows statement (attached is an excel version of this statement).
Cash Flow Statement Analysis Exercise Preview 00:34
Please find attached the cash flow statement exercise. The instructions for the exercise are listed on the first tab in the attached Excel spreadsheet. When you have completed the exercise, please watch the next lecture for an explanation of the answers. Thanks
Cash Flow Statement Analysis Exercise Answer Explanations Preview 02:08
A discussion of the cash flow statement exercise results.
Financial Statement Analysis Conclusion (How All 3 Statements Are Related) Preview 02:17
How are the cash flow statement, balance sheet and income statement connected?
CPE Review Quiz: Section 2-4
Why is Financial Modeling Important & How Can It Help You Achieve Your Goals Preview 02:04
Why is financial modeling important & how can it help you achieve your goals? Now that we understand how to analyze and create an income statement, balance sheet and cash flow statement, we can project the aforementioned financial statements. Once we are finished with the 4 valuation sections, then we will learn how to come up with the appropriate target prices for companies we are doing research on.
Financial Modeling Best Practices Preview 05:13
Please find attached a 1 page document containing 25 of my modeling and valuation best practices. Thanks
Why is Investor Relations+SEC.Gov Important & How Can It Help Me Build Models? Preview 01:46
An introduction to 3 crucial (and free) sources where we can get data to create our financial model forecasts.
Introduction to Investor Relations (A Great Model Data Source) Preview 11:01
What is investor relations and how can the investor relations function help us to better understand companies we are considering investing in?
SEC.gov is Another Great Model Resource Preview 07:07
All investors can now get access to information at the exact same time. This lecture will explain exactly where to get this information and how to navigate several online documents, including the 10-K, 10-Q, S-1 IPO filings etc.
Yahoo Finance is Also a Great Model Resource Preview 05:28
I used to pay thousands of dollars per month/year for Bloomberg access. I will teach you how to get almost all of that information for free!
What Quarterly Earnings Call & Why Is It Important for Modeling Purposes? Preview 04:35
Learn what a quarterly earnings call is and how it can help you understand investment ideas better.
CPE Review Quiz: Section 5-6
Case Study Introduction and What You Will Learn in this Section Preview 01:55
This section is an extremely in depth overview of how I analyze LinkedIn (ticker: LNKD), including creating financials, forecasting financials and several different valuation methodologies, including discounted cash flow (DCF), P/E, P/R, terminal value calculation, weighted average cost of capital calculation, total addressable market analysis and more.
Qualitative Analysis on LinkedIn Preview 02:22
How can I research what a company does? What are the best resources?
What is the Total Addressable Market for LinkedIn and Why is this Important? Preview 06:10
How do I calculate the size of the total addressable market for LinkedIn's products, what does this mean and why is this important when analyzing a company or creating a financial model?
LinkedIn Model Introduction Preview 04:15
This lecture explains how to navigate and set up a professional financial model.
LinkedIn Model Discussion in More Detail (Historical Data Only) Preview 17:47
Please open the attached PDF of the LinkedIn earnings press release before viewing this lecture. Thanks
Forecasting the LinkedIn Model Preview 16:34
Basics on how to forecast the income statement, cash flow statement and balance sheet for my LinkedIn model.
Financial Modeling Exercises Introduction Preview 00:51
An introduction to financial modeling (used so we can come up with target prices for the companies we analyze).
Financial Modeling Exercise Preview 03:33
Please find attached the financial modeling exercise. The instructions for the exercise are listed on the first tab in the attached Excel spreadsheet. When you have completed the exercise, please watch the next lecture for an explanation of the answers. Thanks
Modeling Exercise Answer Explanations Preview 10:08
An in depth discussion of the answers to the financial modeling exercise. "Learn to read financial statements like a good book!"
CPE Review Quiz: Section 7-8
Introduction to Valuation Preview 01:18
Now that we know how to create and model financial statements, we can learn how to value companies based on the financial statements that we created.
More Detail on Growth Versus Value and P/E + P/R + DCF Overview Preview 04:21
It is crucial that we understand what kind of investors we are or work for as growth investors value companies in different ways than value investors do.
25 Valuation and Modeling Best Practices Preview 00:06
Please find attached the 25 Valuation and Modeling Best Practices PDF. Thanks
What is DCF, Why is it Important and How Does it Work? Preview 06:17
What does discounted cash flow (DCF) mean and why is it important to helping us value companies? How can we create a DCF?
Calculating the Terminal Value Preview 02:42
What is the terminal value and why is it crucial for us in order to value a company based on discounted cash flow analysis?
Calculating the Weighted Average Cost of Capital (WACC) Preview 06:23
How can we calculate what rate to discount our future cash flows at? We will discuss the cost of equity and the cost of debt as part of the W.A.C.C. (weighted average cost of capital) for our target price analysis.
DCF Example Preview 07:44
An example of DCF valuation applied to my LinkedIn model.
DCF Exercise Preview 01:57
Please find attached the DCF exercise. The instructions for the exercise are listed on the first tab in the attached Excel spreadsheet. When you have completed the exercise, please watch the next lecture for an explanation of the answers. Thanks
DCF Exercise Answer Explanations Part 1 of 2 Preview 19:27
An extremely in depth discussion of the DCF valuation exercise from the previous lesson (part 1 of 2).
DCF Exercise Answer Explanations Part 2 of 2 Preview 10:31
An extremely in depth discussion of the DCF valuation exercise from the previous lesson (part 2 of 2).
What is Price / Revenue and Why Do We Need to Base a Target Price on this Ratio? Preview 02:11
This section discusses how we can value companies that don't yet have earnings.
Price to Revenue Example Preview 01:44
This lecture shows how we can calculate a target price for LinkedIn using a price to revenue target price methodology.
Price to Revenue Valuation Exercise Preview 00:10
Please find attached the Price / Revenue exercise. The instructions for the exercise are listed on the first tab in the attached Excel spreadsheet. When you have completed the exercise, please watch the next lecture for an explanation of the answers. Thanks
Price to Revenue Exercise Answer Explanations Preview 05:13
A discussion of the answers to the price to revenue valuation exercise.
Introduction to P/E and Why it Matters Preview 02:48
Why do almost all investors love valuing companies using a price to earnings valuation methodology (growth and value investors)? How can we value companies with different earnings growth rates using price to earnings?
Price to Earnings Example Preview 02:28
How to pick a target price for LinkedIn using price to earnings.
Price to Earnings Valuation Exercise Preview 00:10
Please find attached the Price / Earnings valuation exercise. The instructions for the exercise are listed on the first tab in the attached Excel spreadsheet. When you have completed the exercise, please watch the next lecture for an explanation of the answers. Thanks
Price to Earnings Exercise Answer Explanations Preview 05:44
An in depth explanation of the answers to the price to earnings valuation exercise.
Additional Valuation Methodologies Preview 01:39
Additional valuation methodologies, including EV/EBITDA, EV/Sales, price to book, cash flow, etc.
Our Final Price Target Calculation Preview 00:31
Taking a blended average target price based on several valuation methodologies in order to minimize the valuation margin of error is a smart strategy.
Using the TAM to Verify How Realistic Our Target Price Is Preview 01:07
Comparing the total addressable market (T.A.M.) that we calculated for LinkedIn with our model forecast results.
Introduction to Formulas Preview 00:38
Analyzing companies using different formula methodologies from these 4 categories: Profitability Formulas, Time Formulas, Comp. (Competition) Formulas and Debt Formulas.
Amazing Formulas to Assess Financials Preview 07:30
A discussion of the following formulas:
Analyze financial statements using profitability ratios: Gross Margin (Cost of Goods Sold / Revenue), Operating Margin (EBITDA/ Revenue), Net Profit Margin (Net Income / Revenue), Return on Assets (Net Income / Assets) and Return on Equity (Net Income / Equity). Gross Margin (Cost of Goods Sold / Revenue), Operating Margin (EBITDA/ Revenue), Net Profit Margin (Net Income / Revenue), Return on Assets (Net Income / Assets) and Return on Equity (Net Income / Equity).
Analyze financial statements using debt and inventory formulas: Debt to Assets (Total Liabilities/ Total Assets), Debt to Equity (Total Liabilities/ Total Equity), Interest Coverage Ratio (EBITDA / Interest) and Inventory Days on Hand (Inventory / Cost of Good Sold) * 365.
Analyze and compare companies using the following formulas: Price / Earnings, PEG (P/E / Growth), Price / Revenue, EV/EBITDA, EV/Sales, Price/Free Cash Flow and Price / Book.
Exercise on Using Formulas Preview 00:05
An exercise using the following formulas to analyze financial statements:
Analyze financial statements using profitability ratios: Gross Margin (Cost of Goods Sold / Revenue), Operating Margin (EBITDA/ Revenue), Net Profit Margin (Net Income / Revenue), Return on Assets (Net Income / Assets) and Return on Equity (Net Income / Equity). Gross Margin (Cost of Goods Sold / Revenue), Operating Margin (EBITDA/ Revenue), Net Profit Margin (Net Income / Revenue), Return on Assets (Net Income / Assets) and Return on Equity (Net Income / Equity).
Analyze financial statements using debt and inventory formulas: Debt to Assets (Total Liabilities/ Total Assets), Debt to Equity (Total Liabilities/ Total Equity), Interest Coverage Ratio (EBITDA / Interest) and Inventory Days on Hand (Inventory / Cost of Good Sold) * 365.
Analyze and compare companies using the following formulas: Price / Earnings, PEG (P/E / Growth), Price / Revenue, EV/EBITDA, EV/Sales, Price/Free Cash Flow and Price / Book.
Discussion of the Answers to the Formulas Exercise Preview 10:24
A discussion of the answers to the formula questions from the previous exercise:
Analyze financial statements using profitability ratios: Gross Margin (Cost of Goods Sold / Revenue), Operating Margin (EBITDA/ Revenue), Net Profit Margin (Net Income / Revenue), Return on Assets (Net Income / Assets) and Return on Equity (Net Income / Equity). Gross Margin (Cost of Goods Sold / Revenue), Operating Margin (EBITDA/ Revenue), Net Profit Margin (Net Income / Revenue), Return on Assets (Net Income / Assets) and Return on Equity (Net Income / Equity).
Analyze financial statements using debt and inventory formulas: Debt to Assets (Total Liabilities/ Total Assets), Debt to Equity (Total Liabilities/ Total Equity), Interest Coverage Ratio (EBITDA / Interest) and Inventory Days on Hand (Inventory / Cost of Good Sold) * 365.
Analyze and compare companies using the following formulas: Price / Earnings, PEG (P/E / Growth), Price / Revenue, EV/EBITDA, EV/Sales, Price/Free Cash Flow and Price / Book.
CPE Review Quiz: Section 9-15
Conclusion Preview 02:00
Congratulations! You now have a good understanding of Accounting, Finance, Modeling, Valuation and Assessing Financials with Formulas! Thanks
CPE Qualified Assessment
In order to receive CPE credit for this course, you must a) complete all course content, and b) pass this qualified assessment with 70% or greater.
Bonus Lecture Preview 00:29
This course includes:
- 4.5 hours on-demand video
- Access on mobile and TV
- Certificate of completion
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