Corporate Valuation Modeling: A Step-by-Step Guide

Preface. Acknowledgments. About the Author. Chapter 1: Introduction. Overview of the Corporate Valuation Process. A Conceptual Road Map. A Technical Road Map. A Few Best Practices Regarding Financial Modeling. How This Book Works. Model Builder 1.1: Initial Settings and Assumptions Sheet Set Up. Toolbox: Naming Cells. Chapter 2: Dates and Timing. The Need for a Flexible System The Forecast Period. The Terminal Period. Historical Time Periods Event Timing. Model Builder 2.1: Dates and Timing on the Assumptions Sheet. Model Builder 2.2: Introducing the Vectors Sheet. Summary of Dates and Timing. Toolbox. Chapter 3: Revenue, Costs, & the Income Statement. Revenue. Model Builder 3.1: Three Methods for Estimating Revenue Based on Historical Data. Costs. Organizing Revenue and Cost Assumptions for Scenario Analysis. Model Builder 3.2: Installing an Excel Based Scenario Selector System. Bringing Revenues and Costs Together: The Income Statement. Model Builder 3.3: Integrating the Income Statement. A Work In Progress. Toolbox. Chapter 4: Capital Structure and Balance Sheet. What the Company Owns. Model Builder 4.1: Starting the Balance Sheet with Assets. What the Company Owes. Model Builder 4.2: Continuing the Balance Sheet with Liabilities. What the Company Has Already Paid For. Model Builder 4.3: Continuing the Balance Sheet with Equity. Toolbox: Be Careful with Growth. Chapter 5: Capital Expenditures, Depreciation, Intangibles, and Amortization. Capital Expenditures. Depreciation. A Balance Sheet or Income Statement Item? Concept Status. Model Builder 5.1: Capital Expenditure Schedules Set Up. Model Builder 5.2: Depreciation Schedules Set Up. Intangibles. Amortization. Model Builder 5.3: Intangibles and Amortization Schedules. Income Statement and Balance Sheet Effects. Model Builder 5.4: Integrating Capital Expenditures, Depreciation, Intangibles, and Amortization. Toolbox. Chapter 6: Long Term Debt. What is Long Term Debt? Using Debt for a Reason. Modeling Debt: Debt Components in Detail. Model Builder 6.1: Setting Up Debt and Calculating What is Due. Paying Liabilities. Model Builder 6.2: Paying the Correct Liability Amount. Model Builder 6.3: Integrating Long Term Debt into the Income Statement and Balance Sheet. Toolbox. Chapter 7: Balancing the Model. Model Builder 7.1: Calculating Cash and Short Term Debt Interest. Working with the Model. The Model as an Analysis Tool. Toolbox: Excel's Calculation Modes. Chapter 8: Reconciling Cash Flow. The Cash Flow Statement. Working Capital. Model Builder 8.1: Calculating Working Capital. Model Builder 8.2: Building the Cash Flow Statement. Preventing Error through Internal Validation. Model Builder 8.3: Implementing Internal Validations. Other Validations. Toolbox. Chapter 9: Free Cash Flow, Terminal Value, and Discount Rates and Methods. Free Cash Flow: A Matter of Perspective. Model Builder 9.1: Implementing Free Cash Flow. Terminal Value: Beyond the Forecast Period. Model Builder 9.2: Calculating and Integrating a Stable Growth Terminal Value. Discount Rates and Methods. Model Builder 9.3: Calculating and Implementing the Weighted Average Cost of Capital. Model Builder 9.4: Discounting with Multiple Rates to Determine the Corporate Value. After the Corporate Valuation. Toolbox. Weighted Averages Using SUMPRODUCT and SUM. Present Value Functions: PV, NPV, XNPV. Discounting Process with Multiple Rates. COVAR, VAR, and VARP for Beta Calculation. Chapter 10: Output Reporting. Output Summary. Model Builder 10.1: Preparing for the Output Summary Sheet. Web Downloads. Model Builder 10.2: Connecting the Example Model to the Web. Model Builder 10.3: Creating the Output Summary Sheet. Charts. Model Builder 10.4: Creating Dynamic Charts. Toolbox. Chapter 11: Automation Using Visual Basic Applications (VBA). The Object Oriented Programming Language (OOP). Follow the Rules. The Visual Basic Editor. Writing Code: Subroutines and Functions. Understanding VBA Code and Practicing Coding Techniques. Model Builder 11.1: Moving Data Using VBA. Model Builder 11.2: A First Look at Loops and Variables in VBA. Common Errors for First Time VBA Programmers. VBA within a Financial Modeling Context. Model Builder 11.3: Eliminating Circular References. Model Builder 11.4: Creating a Scenario Generator. Model Builder 11.5: Automatic Sheet Printing. Continuing with VBA. Conclusion. About the CD-ROM. Index.