Certificate in

Financial Modeling and Analysis

CFMA Advanced Level

Chapter 1 Feasibility Study - Starting a New Business

Chapter 2 Three Statement Model and Ratio Analysis
Chapter 3 Discounted Cash Flow Valuation
Chapter 4 Stock Trading Model
Chapter 5 Comparative Case Study
Chapter 6 Financial Model and Company Valuation
Chapter 7 Final Project

Module Advanced Level

Duration 8 Sessions / 24 hours

YouExcel
 Advanced Level
Certificate in Financial Modeling and Analysis 24 hours

Table of Content Session Hour(s)

CFMA Advanced Level

Chapter 1 Feasibility Study - Starting a New Business 3.0 x

1.1 Conduct preliminary research to gather essential data for the new business. 1
1.2 Analyze financial ratios to assess the financial health and performance of the business. 1
1.3 Evaluate investment parameters to determine the potential return on investment. 1
1.4 Examine finance parameters to understand the financial requirements and structure of the business. 1
1.5 Consider shareholdings and dividends to determine the ownership structure and potential returns for shareholders. 1
1.6 Perform an in-depth analysis of income statements to understand the revenue, expenses, and profitability of the business. 1
1.7 Analyze balance sheets to assess the financial position, assets, liabilities, and equity of the business. 1
1.8 Evaluate cash flows to understand the inflows and outflows of cash within the business. 1
1.9 Develop a dynamic dashboard that incorporates relevant variables and drivers to monitor and manage the performance of the business. 1

Chapter 2 Three Statement Model and Ratio Analysis 3.0 x

2.1 Design and format the structure and layout of the three statement model. 2
2.2 Input historical financial data into Excel for analysis and forecasting. 2
2.3 Develop assumptions for the income statement, considering revenue, expenses, and profitability. 2
2.4 Establish assumptions for the balance sheet, including assets, liabilities, and equity. 2
2.5 Forecast the future performance of the income statement, balance sheet, and cash flows based on the established assumptions. 2
2.6 Conduct ratio analysis, including common size, growth, profitability, and valuation ratios, to assess the financial health and performance of the company. 2
2.7 Present graphical representations of the ratios to enhance understanding and visual interpretation of the financial analysis. 2

Chapter 3 Discounted Cash Flow Valuation 3.0 x

3.1 Forecasting Free Cash Flows (FCFs) 3
3.2 Calculate the discount rate (WACC) 3
3.3 Discount the FCFs (NPV of explicit period) 3
3.4 Terminal Values and NPV of terminal values 3
3.5 Calculate the Intrinsic Value 3
3.6 Sensitivity Analysis of Share Price and terminal value 3

YouExcel
 Advanced Level
Certificate in Financial Modeling and Analysis 24 hours

Table of Content Session Hour(s)

3.7 DCF Calculator assumptions 3

3.8 Sensitivity analysis and impact of change in assumptions 3
3.9 Present the results of the DCF valuation in a graphical format 3

Chapter 4 Stock Trading Model 3.0 x

4.1 Stock market indices, P/E ratio, market capitalization, dividends, and volumes 4
4.2 Define the primary and secondary objectives of your stock trading model 4
4.3 Adjusted returns and ex-dates 4
4.4 Evaluate and calculate measures of volatility 4
4.5 Gather and import relevant data from various sources 4
4.6 Develop a well-defined trading strategy 4
4.7 Utilize macro recording or scripting functionalities to automate certain trading tasks 4

Chapter 5 Comparative Case Study 3.0 x

5.1 Establish a centralized database for company financials 5
5.2 Analyze company financials and gather relevant facts 5
5.3 Link reports for comparative study 5
5.4 Perform Comparative Income Statement Analysis 5
5.5 Conduct Comparative Balance Sheet Analysis 5
5.6 Utilize Comparative Graphical Analysis 5

Chapter 6 Financial Model and Company Valuation 6.0 x

6.1 Develop a comprehensive forecast of the company's future revenues 6
6.2 Estimate the direct costs associated with producing or delivering the company's products or services 6
6.3 Identify and project the various operating expenses incurred by the company 6
6.4 Consider any additional sources of income or expenses that may impact the company's financial performance 6
6.5 Analyze and forecast the company's working capital needs 6
6.6 Create a detailed schedule of the company's assets 6
6.7 Evaluate and project the company's long-term investments 6

YouExcel
 Advanced Level
Certificate in Financial Modeling and Analysis 24 hours

Table of Content Session Hour(s)

6.8 Analyze the company's long-term borrowing activities 6

6.9 Consider the company's equity structure 7
6.10 Prepare a comprehensive income statement 7
6.11 Develop a balance sheet that outlines the company's assets, liabilities, and shareholders' equity 7
6.12 Prepare a cash flow statement 7
6.13 Determine the value of the company using various valuation techniques 7

Chapter 7 Final Project 3.0 x

7.1 Design the project around a realistic business scenario or case study 8
7.2 The availability of data required for the project 8
7.3 Clearly define the scope of the project and outline the expected deliverables 8
7.4 Clearly communicate the evaluation criteria for the final project 8
7.5 Analyze the strengths and limitations of their financial models and identify areas for improvement 8
7.6 Facilitate the comparison and analysis of different financial models 8

CFMA Advanced Level - Total hours 24.0 x

YouExcel
Certificate in Financial Modeling and Analysis (CFMA) Chapter 1

CFMA Advanced Level / Chap 1

Chapter 1 Feasibility Study - Starting a New Business

1.1 Conduct preliminary research to gather essential data for the new business.
1.2 Analyze financial ratios to assess the financial health and performance of the business.
1.3 Evaluate investment parameters to determine the potential return on investment.
1.4 Examine finance parameters to understand the financial requirements and structure of the business.
1.5 Consider shareholdings and dividends to determine the ownership structure and potential returns for shareholders.
1.6 Perform an in-depth analysis of income statements to understand the revenue, expenses, and profitability of the business.
1.7 Analyze balance sheets to assess the financial position, assets, liabilities, and equity of the business.
1.8 Evaluate cash flows to understand the inflows and outflows of cash within the business.
1.9 Develop a dynamic dashboard that incorporates relevant variables and drivers to monitor and manage the performance of the business.

YouExcel
Certificate in Financial Modeling and Analysis (CFMA) Chapter 1

YouExcel
Certificate in Financial Modeling and Analysis (CFMA) Chapter 2

CFMA Advanced Level / Chap 2

Chapter 2 Three Statement Model and Ratio Analysis

2.1 Design and format the structure and layout of the three statement model.
2.2 Input historical financial data into Excel for analysis and forecasting.
2.3 Develop assumptions for the income statement, considering revenue, expenses, and profitability.
2.4 Establish assumptions for the balance sheet, including assets, liabilities, and equity.
2.5 Forecast the future performance of the income statement, balance sheet, and cash flows based on the established assumptions.

YouExcel
Certificate in Financial Modeling and Analysis (CFMA) Chapter 2

2.6 Conduct ratio analysis;

- Common Size Analysis
- Growth Ratios
- Activity Ratios
- Liquidity Ratios
- Profitability Ratios
- Valuation Ratios
2.7 Present graphical representations of the ratios to enhance understanding and visual interpretation of the financial analysis.

YouExcel
Certificate in Financial Modeling and Analysis (CFMA) Chapter 2

YouExcel
Certificate in Financial Modeling and Analysis (CFMA) Chapter 3

CFMA Advanced Level / Chap 3

Chapter 3 Discounted Cash Flow Valuation

3.1 Forecasting Free Cash Flows (FCFs)
3.2 Calculate the discount rate (WACC)
- Risk Free rate
- Market risk premium
- Stock beta
- Cost of equity
- Pre-tax and After tax cost of debt
- Capital Structure
3.3 Discount the FCFs (NPV of explicit period)
3.4 Terminal Values and NPV of terminal values
- Perpetual growths
- Exit Multiple
3.5 Calculate the Intrinsic Value
- Enterprise Value @ Perpetual Growth
- Enterprise Value @ Exit EBIDTA Multiple
- Net Debts
- Equity Value
- Intrinsic Values per Share
3.6 Sensitivity Analysis of Share Price and terminal value
3.7 DCF Calculator assumptions
- Dynamic Assumptions
3.8 Sensitivity analysis and impact of change in assumptions
- Share Price @ Perpetual Growth
- Share Price @ Exit EBIDTA Multiple
3.9 Present the results of the DCF valuation in a graphical format

Perpetuity Growth Rate

22.92 4.0% 4.5% 5.0% 5.5% 6.0% 6.5%
8.0% 47.24 55.21 65.84 80.72 103.03 140.22
9.0% 34.29 39.07 45.04 52.72 62.96 77.30
10.0% 25.66 28.80 32.57 37.18 42.94 50.34
11.0% 19.50 21.69 24.26 27.29 30.92 35.37
12.0% 14.88 16.49 18.32 20.45 22.92 25.84
WAC C

13.0% 11.29 12.51 13.88 15.43 17.20 19.25

14.0% 8.43 9.37 10.42 11.60 12.92 14.42
15.0% 6.08 6.83 7.66 8.57 9.59 10.72
16.0% 4.13 4.74 5.40 6.13 6.93 7.81
17.0% 2.48 2.98 3.52 4.11 4.75 5.45
18.0% 1.07 1.49 1.93 2.41 2.94 3.50

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Certificate in Financial Modeling and Analysis (CFMA) Chapter 3

YouExcel
Certificate in Financial Modeling and Analysis (CFMA) Chapter 3

DCF Valuation Terminal value @ perpetual growth

Periods 0 1 2 3 4 5 Long Term Growh Rate in UCFF 3.00%

2018 2019 2020 2021 2022 2023 WACC 11.00%
Free Cash Flow
Free Cash F low (t+1) > UF CF 5p x (1+ g) 86,299
F C F = Operating C as h F low - CA P E X
Terminal V alue > FCF (t+1) / (WACC - g) 1,078,733
P V of Terminal Value > TV/(1+WACC 5p)^5 640,176
Revenues 314,358 336,363 359,908 385,102 412,059 440,903

Terminal value @ Exit Multiple

E BITDA 128,199 140,274 152,274 164,148 175,546 189,617
E V/E BITDA E xit multiple 5x
E BIT 113,149 121,607 131,478 141,048 150,398 162,453 Terminal V alue 948,085
Tax Rate 22% 19% 20% 23% 18% P V of Terminal Value > TV/(1+WACC 5p)^5 562,642
E BIA T 95,283 107,146 112,299 116,271 133,426
WACC
Add: Depreciation & Amortization 18,667 20,796 23,100 25,148 27,164 (E quity Ratio x Cost of E quity)+(Debt Ratio x After Tax Cost of Debt)
Less: CAPE X (61,250) (66,875) (64,063) (65,469) (64,766)
Less: Change in Working Capital Cost of Debt 11.8%
Change in Account Receivable Tax Rate 17.9%
(428) (9,973) (6,126) (6,166) (8,610)
Change in Inventories After Tax Cost of Debt 7.1%
1,560 (5,432) (4,640) (3,839) (5,176)
Change in Prepaid E xpenses - - - - -
Cost of E quity = Risk Free Rate + (Beta x Market Risk P remium)
Change in Account Payables 3,067 986 1,429 2,435 1,741
Risk Free Rate 9.8%
Change in Accured E xpenses 46 (20) (8) 5 6
Market Risk Premium 5.0%
Unlevered F C F s 56,945 46,628 61,991 68,386 83,785 Beta 1.00
Dis count R ate (W A C C ) 11% 11% 11% 11% 11% Cost of E quity 14.8%
P V of F C F s 51,301 37,844 45,327 45,048 49,722
Total Debt Last Actual Data 405,000
S um of PV of FCFs 229,243 NPV of explicit period 229,243
S hare P rice 25.00
S hares Outstanding 17000
Intrinsic Values
Total E quity Last Actual Data 425,000

E nterprise Value @ Perpetual Growth 869,419 E nterprise Value @ E xit Multiple 791,885 Total Capital 830,000
Less: Net Debt 203,849 Less: Net Debt 203,849
E quity Value 665,570 E quity Value 588,036 Capital S tructure
Debt to Captial Ratio 48.8%
E quity Value Per S hare 39.15 E quity Value Per S hare 34.59 E quity to Captial Ratio 51.2%
WACC 11.03%

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Certificate in Financial Modeling and Analysis (CFMA) Chapter 4

CFMA Advanced Level / Chap 4

Chapter 4 Stock Trading Model

4.1 Stock market indices, P/E ratio, market capitalization, dividends, and volumes
4.2 Define the primary and secondary objectives of your stock trading model
4.3 Adjusted returns and ex-dates
4.4 Evaluate and calculate measures of volatility
- Varianc, Standard Deviation, Co-Variance, Correlation, Beta
4.5 Gather and import relevant data from various sources
4.6 Develop a well-defined trading strategy
4.7 Utilize macro recording or scripting functionalities to automate certain trading tasks

YouExcel
Certificate in Financial Modeling and Analysis (CFMA) Chapter 4

YouExcel
Certificate in Financial Modeling and Analysis (CFMA) Chapter 5

CFMA Advanced Level / Chap 5

Chapter 5 Comparative Case Study

5.1 Establish a centralized database for company financials
5.2 Analyze company financials and gather relevant facts
5.3 Link reports for comparative study

YouExcel
Certificate in Financial Modeling and Analysis (CFMA) Chapter 5

5.4 Perform Comparative Income Statement Analysis

- Vertical and Horizontal Analysis
- Trend Analysis
- Business Risks

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Certificate in Financial Modeling and Analysis (CFMA) Chapter 5

5.5 Conduct Comparative Balance Sheet Analysis

- Vertical Analysis
- Liquidity Ratio Analysis
- Turnover Ratios
- Operating Profitability
- Valuation

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Certificate in Financial Modeling and Analysis (CFMA) Chapter 5

5.6 Utilize Comparative Graphical Analysis

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Certificate in Financial Modeling and Analysis (CFMA) Chapter 6

CFMA Advanced Level / Chap 6

Chapter 6 Financial Model and Company Valuation
6.1 Develop a comprehensive forecast of the company's future revenues
6.2 Estimate the direct costs associated with producing or delivering the company's products or services
6.3 Identify and project the various operating expenses incurred by the company
6.4 Consider any additional sources of income or expenses that may impact the company's financial performance
6.5 Analyze and forecast the company's working capital needs
6.6 Create a detailed schedule of the company's assets
6.7 Evaluate and project the company's long-term investments

YouExcel
Certificate in Financial Modeling and Analysis (CFMA) Chapter 6

6.8 Analyze the company's long-term borrowing activities

6.9 Consider the company's equity structure
6.10 Prepare a comprehensive income statement
6.11 Develop a balance sheet that outlines the company's assets, liabilities, and shareholders' equity
6.12 Prepare a cash flow statement
6.13 Determine the value of the company using various valuation techniques

YouExcel