July 2013
Beginner to intermediate
432 pages
8h 6m
English
book
Financial Modeling and Valuation: A Practical Guide to Investment Banking and Private Equity
by Paul Pignataro
Content preview from Financial Modeling and Valuation: A Practical Guide to Investment Banking and Private Equity
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PART One
Financial Statements and Projections
Financial modeling is the fundamental building block of analysis in investment banking. We will take a look at Walmart and analyze its financial standing, building a complete financial model as it would be done by Wall Street analysts.
The goals of this section are:
1. Understanding financial statements
a. Concepts
b. Historical analysis
c. Making projections
d. Model flow between the statements
2. Ability to build a complete financial model of Walmart
It is recommended that a financial model be built in six major components:
1. Income statement
2. Cash flow statement
3. Balance sheet
4. Depreciation schedule
5. Working capital
6. Debt schedule
The first three are the major statements: income statement, cash flow statement, and balance sheet. The latter three help support the flow and continuity of the first three. It is also not uncommon to have even more supporting schedules depending on the required analysis. Notice the first six tabs in the model template (“NYSF—Walmart—Template.xls”). Each reflects the six major model components. Please use the template and follow along as we build the model together.
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I’ve been on the O’Reilly platform for more than eight years. I use a couple of learning platforms, but I'm on O'Reilly more than anybody else. When you're there, you start learning. I'm never disappointed.Amir M.
I'm always learning. So when I got on to O'Reilly, I was like a kid in a candy store. There are playlists. There are answers. There's on-demand training. It's worth its weight in gold, in terms of what it allows me to do.