Financial Modeling in Excel – DCF Valuation Model of Apple

Perform financial analysis, forecasting, business valuation techniques and financial modeling for company Apple Inc.

Created by: EDUCBA Bridging the Gap
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What Will I Learn?

• Understand the fundamentals of financial modeling. Learn how to read and interpret annual reports.
• Master techniques for forecasting revenue. Calculate and understand cost sheet elements. Link cost sheet data to income statement.
• Learn Earnings Per Share (EPS) calculations. Understand computing weighted average shares.
• Explore components of the balance sheet. Calculate net working capital. Understand the cash conversion cycle. Learn to forecast accounts receivable.
• Build accurate assumptions for balance sheet forecasting.
• Forecast capital expenditures. Use a waterfall for depreciation forecasting. Calculate the ending net property, plant, and equipment.
• Understand common stock and retained earnings. Learn techniques for forecasting dividends.
• Forecast other current and non-current liabilities. Learn to forecast long-term debt. Understand interest expense calculations.
• Link debt components accurately. Handle circular references effectively. Understand the mechanics of Discounted Cash Flow (DCF) valuation.
• Model the cost of debt. Calculate Weighted Average Cost of Capital (WACC). Understand weighted average interest rates.
• Grasp the concept of WACC. Understand time value of money. Calculate risk-free rate, beta, and equity risk premium. Determine market value of equity and debt.
• Explore concepts of Free Cash Flow to the Firm (FCFF) and Free Cash Flow to Equity (FCFE). Learn calculations for FCFF.
• Understand NPV calculations. Calculate target share price. Perform sensitivity analysis. Explore the relation between growth rate and valuation.
• Understand exit options. Gain additional insights into valuation.
• Students will have a comprehensive understanding of financial modeling techniques, enabling them to create robust and accurate financial models

Requirements

• Basic Understanding of Finance: Familiarity with basic financial concepts such as income statements, balance sheets, and cash flow statements is recommended.
• Microsoft Excel Skills: Proficiency in Microsoft Excel is essential, as financial modeling heavily relies on spreadsheet software. Students should be comfortable navigating Excel, entering data, and performing basic functions.
• Understanding of Corporate Financial Statements: A basic understanding of how corporate financial statements (income statement, balance sheet, and cash flow statement) are structured and interconnected is beneficial.
• Mathematics and Statistics Fundamentals: Some familiarity with fundamental mathematical and statistical concepts will be helpful, especially when dealing with financial calculations and modeling.
• Interest in Financial Analysis: A genuine interest in financial analysis and modeling is crucial, as the course delves into forecasting, valuation, and interpreting financial data.
• While not mandatory, these prerequisites will ensure that students can fully grasp the content and concepts covered in the financial modeling course.

Target audience

• Finance Professionals: Financial analysts, investment bankers, and professionals working in corporate finance who want to enhance their financial modeling skills.
• Business and MBA Students: Students pursuing business degrees, especially those in MBA programs, seeking a comprehensive understanding of financial modeling for future roles in finance and consulting.
• Entrepreneurs and Business Owners: Individuals running businesses or planning to start their own ventures who want to develop financial modeling skills for strategic decision-making and planning.
• Consultants: Management consultants and strategy consultants aiming to strengthen their analytical and modeling capabilities for client projects.
• Aspiring Analysts: Individuals aspiring to become financial analysts or work in related fields, looking to build a solid foundation in financial modeling.
• Professionals Transitioning to Finance: Professionals from other fields considering a transition to finance, providing them with the necessary skills to enter financial roles.
• Anyone Interested in Financial Modeling: Individuals with a general interest in finance and financial modeling, regardless of their current profession or educational background.
• This course caters to a diverse audience with varying levels of financial knowledge and professional backgrounds, making it accessible to a broad range of learners interested in mastering financial modeling skills.