Written by the founder and CEO of the prestigious New York School of Finance, this book shows you the basic tools to accurately assess the soundness of an equity investment. Based on a comprehensive Wal-Mart case study, it shows you how to do an in-depth analysis of this company's financial condition and walks you through every step of the way to develop a sophisticated financial model as done by professional Wall Street analysts. You'll build a comprehensive financial model and step-by-step assessment as you browse the book.
When we conducted this analysis in January 2012, we believed the stock was undervalued. Since the first run of the analysis, the stock has risen 35 percent. With a re-evaluation of Wal-Mart 9 months later, we will look at the techniques Wall Street analysts use to model and adequately value business units.
Step-by-Step Financial Modeling - With downloadable Wall Street Models, you'll learn the model step-by-step as you flip through the book.
Keyboard shortcuts and explicit Excel instructions will help even the novice Excel modeler.
Built model complete with income statement, cash flow statement, balance sheet, accounting techniques, depreciation plan (complete with accelerated depreciation and deferred taxes), operating resource plan, debt plan, circulation references management and automatic debt payments.
Clear concepts, including details about the model flow, help with conceptual understanding.
The concepts are repeated and refined, perfect for a beginner but detailed enough for a professional.
Model built directly from Wal-Mart public archives, researched notes, researched and illustrated techniques for formulating projections. Includes in-depth coverage of valuation techniques commonly used by Wall Street professionals.
Clear analysis of comparable companies: Correctly structured, calculate directly from historical financial data, LTM data (last twelve months), plan EBITDA and net profit and level them correctly.
Past Transaction Analysis - Details on how to extract the correct metrics from relevant delegation declarations Discounted Cash Flow Analysis - Simplifies and illustrates how a DCF is used, how unlevered free cash flow is derived, and what the weighted average cost of capital (WACC) means.
Step by step we will conduct an evaluation on Wal-Mart.
Questions at the end of the chapter, exercise templates, additional case studies, and general interview questions (available on the dedicated website) help consolidate the techniques refined in the book. ideal for universities or business students looking to get into investment banking.