Beginner to Pro in Excel: Financial Modeling and Valuation
**Updated for November 2018!**
Do you want to learn how to use Excel in a real working environment?
Are you about to graduate from university and start looking for your first job?
Are you a young professional looking to establish yourself in your new position?
Would you like to become your team’s go-to person when it comes to Financial Modeling in Excel?
If you answered yes to any of these, then this is the right course for you!
Join over 50,000 successful students taking this course!
The instructor of this course has extensive experience in Financial Modeling:
Worked in the Financial advisory unit of a top-tier consulting firm
Experience in transactions carried out in Italy, Germany, Switzerland and Poland
Worked in the in-house Mergers & Acquisitions department of a large multinational corporation
Been a financial advisor in multiple M&A deals with sizes ranging from €2 million to €5 billion
Worked on company valuations, due diligence analysis, impairment tests, bankruptcy proceedings, cash flow analysis, and more.
Learn the subtleties of Financial Modeling from someone who has walked the same path. Beat the learning curve and stand out from your colleagues.
A comprehensive guide to Financial Modeling in Excel:
Become an Excel expert
Learn how to build sound Financial Models and stand out among your colleagues
Gain an in-depth understanding of the mechanics of Company Valuation
Build your files professionally
Demonstrate superior Excel skills at work
Be prepared from day one for your Investment Banking, Financial Advisory or Consulting career
What we offer:
Well-designed and easy-to-understand materials
Detailed explanations with comprehensible case studies based on real situations
Downloadable course materials
Regular course updates
NEW! Includes professional chart examples that are 1:1 with those used by major banks and consulting firms.
By completing this course, you will:
Be able to work comfortably with Microsoft Excel and many of its advanced features
Become one of the top Excel users in your team
Be much quicker at carrying out regular tasks
Be able to build a P&L statement from a raw data extraction
Be able to build a cash flow statement
Know how to value a company
Be able to build a valuation model from scratch
Know how to create a model with multiple scenarios
Know how to create professional and good-looking advanced charts
About the course:
An unconditional Udemy 30-day money-back guarantee – because we believe in the quality of our content
No significant previous experience is needed to understand the course properly and benefit from its content
Unlimited access to all course materials
Emphasis on learning by doing
You can always contact us for any clarification free of charge
Our goal is to take your Microsoft Excel and Financial Modeling skills to the next level
Make an investment that will be highly rewarded in career prospects, positive feedback, and personal growth.
This course is suitable for graduates who aspire to become investment bankers as it includes a well-structured DCF model and goes through the theoretical concepts behind it. Moreover, it will encourage you to be more confident when coping with daily tasks and will give you the edge when the firm must decide whether to take you on for a full-time position.
People with basic knowledge of Excel who go through the course will dramatically increase their Excel skills.
Go ahead and subscribe to this course! If you don’t acquire these skills now, you will miss an opportunity to separate yourself from others. Don’t risk your future success! Let’s start learning together now!
Beginner to Pro in Excel: Financial Modeling and Valuation - Welcome!
Introduction to Excel
This opening section will take you through the basics of Excel. An easy-to-understand introduction that will bring you up to speed in no time.
Some of the topics and concepts discussed in this lesson:
·Row and Column references
·Basic operations in Excel: Copy, Paste, Paste Special, Cut, Undo, Redo
Useful tips and tools for your work in Excel
Initial formatting is key for the final output of your work in Excel. Through the use of some basic operations, we will learn how to render spreadsheets professional and good-looking
Some of the operations performed in this lesson:
·Coloring of cells
·Adjusting column width
·Modifying Font and Font size
Working with Excel data is a whole lot easier when you know how to use a few important shortcuts:
·Control plus Arrow key - jump to the last populated cell in that direction
·Control plus Shift plus Arrow key – extend the selection of cells to the last nonblank cell
Understand how fixing cell references properly can save you lots of time when working in Excel
Alt plus Enter – a neat trick that allows you to organize your text content on multiple rows
“Text to Columns” allows you to separate data that is in a single column into multiple columns. You have to pick among two options in order to separate the data:
·Delimited Text – there is a character, such as comma or blank space separating each group of text
·Fixed-Width Text – each group of text is a set number of characters
The “Wrap Text” button is useful when a cell’s text content is greater than its size. It automatically adjusts the row size and fits the content of the cell in its borders
Use “Set Print Area” in order to define, which parts of your Excel spreadsheet should be printed and which should not be printed
Select Special allows Excel users to select a range of cells based on specific criteria. For example, they can choose whether to select:
·Visible cells, etc.
Dynamic naming allows you to create flexible financial models that can be used multiple times. Link all names within a model to its Input page, in order to modify only once, when you have to use the model in future.
Using range names is a nice way to describe formulas in Excel. It can make Excel formulas easier to understand and prevent potential errors. For example, the range C4:C7 can be named “Sales12”, which makes it easier to remember and understand.
Excel has a number of built-in cell formats that you can use: “Number”, “Currency”, “Accounting”, etc. If you cannot find an option that satisfies your needs you can easily create your own “Custom” format.
Certain tasks are repeated a number of times in Excel. Recording Macros is a great way to save time by automating a series of commands that you use frequently. In order to record and run a Macro, you have to:
·Work in a Macro-Enabled Excel Workbook
·Enable the Developer tab in the Excel Ribbon
·Record a Macro and save it
·Run the Macro that you saved
Drop-down lists are a common tool used for data validation purposes in Microsoft Excel. They allow Excel users to select from a list of acceptable data entries for a specific cell in a worksheet.
Custom Sort allows Excel users to organize the data in multiple columns according to the values in one of these columns
Hyperlinks are references pointing to a specific place in a file. They facilitate the navigation of Excel users by allowing them to “jump” to a specific place with a single click.
Freeze Panes allows Excel users to scroll down or to the right and continue to see the rows or columns that were “frozen”
Keyboard shortcuts in Excel
Learning how to use keyboard shortcuts is an essential part of your Microsoft Excel training. The slides in this lesson will enable you to pick up a number of useful keyboard combinations that will dramatically increase the efficiency of your work
Excel's key functions and functionalities made easy
The IF function tests whether a certain condition is true or false. It works in the following way:
1.Excel tests whether the logical test, which is the first argument of the function, is satisfied
2.If the logical test is satisfied, Excel delivers value A (the second argument of the function)
3.If the logical test is not satisfied, Excel delivers value B (the third argument of the function)
SUM functions are widely used in Excel. They allow us to add the numbers within a given cell range
1.SUM has only one argument – the range of cells to be summed
2.SUMIF allows us to add the cells within a range, which satisfy a given criterion
3.SUMIFS is able to add up values in a range of cells that satisfy multiple conditions
This lesson is dedicated to Excel’s COUNT functions. They are applied when we need to count the cells within a range that contain numbers, text, or satisfy specific conditions. In particular we will be examining:
1.COUNT - counts the number of cells that contain numbers
2.COUNTA - counts the number of cells that contain text
3.COUNTIF - returns the number of cells that satisfy a specific condition
4.COUNTIFS - counts the number of cells within a given cell range, if multiple conditions are satisfied
This lesson describes the formula syntax and application of the AVERAGE and AVERAGEIF functions in Excel.
1.AVERAGE finds the mean of a specified range of cells
2.AVERAGEIF finds the mean of a specified range of cells, if a given condition is satisfied
Text functions are an indispensable tool for any Excel user. In this lesson, we will focus on three types of text functions:
1.Text functions extracting a part of a cell - LEFT, RIGHT and MID
2.Functions changing the case of a text - UPPER, LOWER and PROPER
3.Combining cell values of multiple cells - & and CONCATENATE
In this video tutorial, we will continue to present to you popular functions in Microsoft Excel;
1.MAX finds the highest value in a range of cells
2.MIN allows us to obtain the lowest value in a range of cells
ROUND would allow you to round numbers in Excel
Transferring data efficiently is at the heart of your success in Microsoft Excel. This lesson provides an easy to understand introduction to two of the venerable functions in Excel:
1.Vlookup – finds a lookup value in the leftmost column of a table and returns a corresponding value
2.Hlookup – finds a lookup value in the top row of a table and returns a corresponding value
The combination of Index and Match is our favorite tool for looking up data. It is a flexible instrument that overcomes some of the shortages of Vlookup and Hlookup;
1.Index extracts the value lying at the intersection of a particular row and column
2.Match returns the relative position of an item
3.The combination of Index & Match - Index needs as an input relative positions within a range, Match delivers those relative positions by finding the lookup value
Error messages are undesired in Excel spreadsheets for several reasons:
1.If a range contains a cell with an error, this impedes us from carrying out operations with the entire range
2.They disturb the eye of Excel Users
3.A file containing error messages cannot be shown to external users
IFERROR resolves these issues. The function tests whether a given cell contains an error, and if it does it replaces the error message with a value specified by the Excel user
CHOOSE is a great tool for Financial Modeling. It allows Excel users to build various scenarios, which can be critical when dealing with an uncertain environment and building a dynamic model.
CHOOSE has n arguments, which can be divided into two groups – its index number (the first argument) and the rest of the arguments.
·The Index Number determines, which argument will be selected
·The rest of the arguments are the values from, which CHOOSE selects
Goal Seek is part of the “What-if” analysis tool within Excel. It is a nice instrument that allows users to find a desired result for a given parameter by changing other parameters related to it.
Three inputs are required in order to use the Goal Seek functionality:
1.A cell to set
2.The value to which we would like to set the cell
3.A cell to modify
This lecture introduces you to Data Tables. A powerful tool enabling you to provide sensitivity analysis for a number of parameters. Data Tables illustrate perfectly the influence that a given parameter has on the final output
Pivot Tables are one of Excel’s most powerful features. They allow us to synthesize and elaborate, with ease, large amounts of data.
In this lesson we will learn how to:
1.Create a Pivot Table
2.Introduce different variables to the Pivot Table Report
3.Choose the type of calculation that you want to use to summarize data
Update! 15 December - Exercise
An exercise focusing on the practical application of “Sumifs” - a very interesting Excel function that allows you to create dynamic tables in an efficient way.
Financial functions in Excel
Microsoft Excel's Pivot Tables in Depth
Case study - Building a complete P&L from scratch in Excel
The next part of the course is structured as a Case Study and would allow you to:
1.Apply in practice what we have seen so far
2.Work on a real-world task
3.Enhance your spreadsheet formatting skills
4.Learn how to create advanced charts
Before managing big data, you must understand it first. That is why in this lesson we will focus on understanding our data source. The data in the source sheets is structured in the following way:
1.Name of P&L account
2.Partner company number (indicates whether a transaction was registered with a related or with an external counterparty)
3.Name of Partner company
The next video of our Case Study we will show you how to order a source worksheet. The operations to be carried out include:
1.Writing titles on the top of the source tables
2. Placing filters
3.Align the data in a coherent way
4.Eliminate unnecessary rows
When we have a large data extraction, we have to be sure that we will be able to manage it efficiently. A good way to do that is by creating a code, which summarizes the important information about each line item
Gathering data from different years (and different sheets) on a single sheet is crucial. It allows the user to classify all the data in a coherent way when attributing a P&L category
In the previous video we were able to organize all of the line item codes in the same sheet. In this lesson we will apply VLOOKUP in order to fill in some of the fields of our Database
The Database sheet unites all three years of data together. The only fields that are missing are the actual amounts that were observed for each line item during the three years.
In this lesson, we will fill in the amounts observed for each code with SUMIF. In addition to that, we will use a method that would help us understand whether we have worked correctly or not.