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 Two
Valuation
Valuation is crucial in investment banking. How much is this entity worth? What is the appropriate price of this stock? We will take a look at Walmart, analyze its financial standing, and determine if the stock is overvalued or undervalued as done by Wall Street analysts.
The goals of this section are:
1. Understanding valuation
a. Multiples
b. Comparable company analysis
c. Precedent transactions analysis
d. Discounted cash flow analysis
2. Ability to build a complete valuation of Walmart
As a disclaimer, there are a lot of excellent valuation books. This section does not set out to be a complete and thorough explanation of valuation. Rather, it is meant to be a practical methodology towards utilizing valuation. We will go through a basic understanding of valuation and the concepts, but a deep discussion of the ever-changing theories and the proofs of such is beyond the scope of this book.