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Title
Subtitle
Presenter – Instructor Name
Financial Modeling and Advanced Valuation
Presenter – Ankur Kapur
Introduction to Financial Modeling
Know your instructor
Ankur is a Finance domain expert and has over twelve years of experience in
valuations, M&A, research and portfolio management. He currently manages over
$100 million assets and classifies himself as active portfolio manager and his area
of expertise includes equity, F&O, fixed income and portfolio management.
Ankur has worked with global companies such as American Express Financial
Advisors, McKinsey and Ernst & Young. He is an alumnus of Hindu College and
Delhi School of Economics. He is also a CFA from CFA Institute, USA and CFP from
FPSB India.
Ankur has trained 500+ students in Financial Modeling globally.
Ankur Kapur – CFA, CFP
http://www.edureka.co/financial-modeling
What will you learn today?
 Why Financial Modeling ?
 Course Objective
 Course Benefits
 Who should take this course ?
 Case: Beta calculation
http://www.edureka.co/financial-modeling
Course Introduction
Course Introduction
Advanced Valuation and Financial Modeling Course is an online live training program that can enable you to build a
comprehensive understanding of valuation and also become an expert in excel modeling
http://www.edureka.co/financial-modeling
By attending this program, you will:
 Deepen your understanding of the valuation concepts you apply daily
 Re-focus / re-learn the financial theory behind estimating value
 Further understand and enhance your knowledge of valuation theory and
potential application
 Question common practices and identify common mistakes and
misunderstandings
Who should attend?
 Commerce graduate
 MBA students
 Financial and Business analysts
 Financial controllers, managers
and modelers
 Chief Financial Officers
 Risk Managers
 Chartered Accountants
 Corporate treasury managers
 Middle Office Staff
 General Managers
 Fund Managers
 PE Fund Managers
Course Content
 Advanced Excel Features and Techniques
 Financial Statement & Analysis
 Cost of Capital
 Stock Valuation Models
 DCF Modeling
 Special Situation - Private Company Valuation
 Mergers & Acquisitions
http://www.edureka.co/financial-modeling
How do you practically calculate
‘BETA’
Estimating the cost of equity – beta overview
What is Beta?  A measure of how much a company’s stock moves with the market
 Beta is a result of comparison to a “market” return. Make sure you
understand which market comparison it is based upon (e.g. local vs. global)
Why is Beta
important?
 Beta is a measure of investment risk that helps us to estimate the returns
required for an equity investment
 It helps us to define the non-diversifiable “risk” of a security
How to
calculate Beta
 Beta is estimated by regressing a company’s stock returns against an index
http://www.edureka.co/financial-modeling
Estimating the cost of equity – beta calculation
http://www.edureka.co/financial-modeling
 Raw regressions should use at least 60 data points (e.g., five years of monthly returns). Rolling betas should
be graphed to examine any systematic changes in a stock’s risk.
 Raw regressions should be based on monthly returns. Using shorter return periods, such as daily and weekly
returns, leads to systematic biases.
 Company stock returns should be regressed against a value weighted, well-diversified portfolio, such as the
S&P 500 or MSI World Index.
Use industry/peer results to refine beta estimate
To estimate beta based on comparable companies, calculate unlevered betas to develop industry beta estimate
and then re-lever with target capital structure
Step 1
» Select a comparable benchmark
Step 2
» Estimate the benchmark’s Beta
Step 3
» Uniliver the Benchmark’s Beta
Step 4
» Lever the Beta to reflect the subject’ company’s financial leverage
http://www.edureka.co/financial-modeling
Course Details
http://www.edureka.co/financial-modeling
Edureka's Financial Modeling with Advanced Valuation Techniques course:
• Online Live Courses: 21 hours
• Assignments: 15 hours
• Project: 15 hours
• Lifetime Access + 24 X 7 Support
Go to www.edureka.co/financial-modeling
Batch starts from 14 November (Weekend Batch)
Time: 7:00AM to 10:00AM
Thank You
Questions/Queries/Feedback
Recording and presentation will be made available to you within 24 hours

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Financial Modelling

  • 1. Title Subtitle Presenter – Instructor Name Financial Modeling and Advanced Valuation Presenter – Ankur Kapur Introduction to Financial Modeling
  • 2. Know your instructor Ankur is a Finance domain expert and has over twelve years of experience in valuations, M&A, research and portfolio management. He currently manages over $100 million assets and classifies himself as active portfolio manager and his area of expertise includes equity, F&O, fixed income and portfolio management. Ankur has worked with global companies such as American Express Financial Advisors, McKinsey and Ernst & Young. He is an alumnus of Hindu College and Delhi School of Economics. He is also a CFA from CFA Institute, USA and CFP from FPSB India. Ankur has trained 500+ students in Financial Modeling globally. Ankur Kapur – CFA, CFP http://www.edureka.co/financial-modeling
  • 3. What will you learn today?  Why Financial Modeling ?  Course Objective  Course Benefits  Who should take this course ?  Case: Beta calculation http://www.edureka.co/financial-modeling
  • 5. Course Introduction Advanced Valuation and Financial Modeling Course is an online live training program that can enable you to build a comprehensive understanding of valuation and also become an expert in excel modeling http://www.edureka.co/financial-modeling By attending this program, you will:  Deepen your understanding of the valuation concepts you apply daily  Re-focus / re-learn the financial theory behind estimating value  Further understand and enhance your knowledge of valuation theory and potential application  Question common practices and identify common mistakes and misunderstandings Who should attend?  Commerce graduate  MBA students  Financial and Business analysts  Financial controllers, managers and modelers  Chief Financial Officers  Risk Managers  Chartered Accountants  Corporate treasury managers  Middle Office Staff  General Managers  Fund Managers  PE Fund Managers
  • 6. Course Content  Advanced Excel Features and Techniques  Financial Statement & Analysis  Cost of Capital  Stock Valuation Models  DCF Modeling  Special Situation - Private Company Valuation  Mergers & Acquisitions http://www.edureka.co/financial-modeling
  • 7. How do you practically calculate ‘BETA’
  • 8. Estimating the cost of equity – beta overview What is Beta?  A measure of how much a company’s stock moves with the market  Beta is a result of comparison to a “market” return. Make sure you understand which market comparison it is based upon (e.g. local vs. global) Why is Beta important?  Beta is a measure of investment risk that helps us to estimate the returns required for an equity investment  It helps us to define the non-diversifiable “risk” of a security How to calculate Beta  Beta is estimated by regressing a company’s stock returns against an index http://www.edureka.co/financial-modeling
  • 9. Estimating the cost of equity – beta calculation http://www.edureka.co/financial-modeling  Raw regressions should use at least 60 data points (e.g., five years of monthly returns). Rolling betas should be graphed to examine any systematic changes in a stock’s risk.  Raw regressions should be based on monthly returns. Using shorter return periods, such as daily and weekly returns, leads to systematic biases.  Company stock returns should be regressed against a value weighted, well-diversified portfolio, such as the S&P 500 or MSI World Index.
  • 10. Use industry/peer results to refine beta estimate To estimate beta based on comparable companies, calculate unlevered betas to develop industry beta estimate and then re-lever with target capital structure Step 1 » Select a comparable benchmark Step 2 » Estimate the benchmark’s Beta Step 3 » Uniliver the Benchmark’s Beta Step 4 » Lever the Beta to reflect the subject’ company’s financial leverage http://www.edureka.co/financial-modeling
  • 11. Course Details http://www.edureka.co/financial-modeling Edureka's Financial Modeling with Advanced Valuation Techniques course: • Online Live Courses: 21 hours • Assignments: 15 hours • Project: 15 hours • Lifetime Access + 24 X 7 Support Go to www.edureka.co/financial-modeling Batch starts from 14 November (Weekend Batch) Time: 7:00AM to 10:00AM
  • 12. Thank You Questions/Queries/Feedback Recording and presentation will be made available to you within 24 hours