Good fundamental analysis isn’t enough these days.

We’ll strengthen yours, and more.

We’ll check your channel checks. We’ll challenge what you claim to know.

World-class managers aren’t defined by their returns, but by **their risk**.

Benchmarks aside, do you know *what* to improve about your portfolio?

Professionals tasked with managing money in fields such as:

Asset Management Portfolio Management Wealth Management Mutual Funds Pensions Family Offices… and anyone working in an institutional investing role.

- Nail both the qualitative and quantitative analysis
- Build battle-tested models used for real investment decisions
- Utilize shortcuts and best practices to cut down on wasted time in Excel

Build an integrated, self-balancing 3-statement model, complete with a **debt sweep** and **interest schedule** to project run-rate profitability over the next 5 years.

Think of this like a road map you can use to figure out where a company is headed.

Explore the 4 main valuation methodologies, from fundamental to relative.

Put each one into practice with a dedicated valuation model, using real historical data.

This makes it a breeze to analyze dozens of companies in a short amount of time.

**Even if you’re not a hedge fund**, knowing how to think like one is pivotal to maintaining your edge.

What types of information are important? How does stock liquidity and the broader portfolio mix affect future investments? These questions matter across the board.

We cover Markowitz’ formula in detail, along with CAPM, the Capital Market Line, and the Security Market Line.

With Excel Solver, we can put this all together to derive the efficent frontier from a portfolio of stocks.

What do you do when your fundamental thesis disagrees with your technical analysis?

We’ve come up with a robust framework for how to layer both approaches to juice your returns.

Our approach is to teach you *how to fish*, rather than give you a fish.

We don't give a one-way lecture where you memorize every cell and formula.

We nudge you toward uncovering answers on your own by leading with the right questions.

The end result? **Longer-term knowledge retention that will last an entire career**.

I really felt that WST was world class and would recommend it to anyone starting a new career on Wall Street. In particular, the strength of the program is that it concentrates on how analytical work is actually conducted in real life rather than the academic approach of some other competitors.

- Form every fundamental investment thesis with more confidence
- Compare and contrast valuations across wide baskets of companies
- Back up your portfolio choices with quantitative measures

Economics - if not dismal, the “science” can certainly be frustrating. Ask yourself, do weak employment figures portend a decline in corporate profits and falling equity prices, or does it signal potential intervention from the central bank and rising equity prices? Exasperating, right?

The application of economic data to real world investment decisions often requires a secondary and even tertiary analysis of its meaning. Said differently, using economic data in the real world is more a “sentiment game” than a mathematical formula. What is a sentiment game? Keynes would describe it as a newspaper beauty contest, but more technically it’s a strategic interaction between multiple players seeking to ascertain not necessarily their interpretation of a given set of information, but the interpretation and reaction of the other players in the game.

This Global Macroeconomics course examines the practice of interpreting economic information in a way that is helpful to decision makers. We address key theoretical concepts including basic macroeconomics, the business and debt cycles, monetary and fiscal policy, and international trade; but also leave the ivory tower to examine actual economic releases and discuss not what “should” happen but what does or can happen.

The course is broadly divided into two sections: Core Concepts and Key Economic Indicators & Data Series. The Core Concepts section of the course covers introductory economic theories and models that are required background information for economic analysis. This is done through an explanation of content followed by a real world example taken from a leading financial news source. The second portion of the course looks at key economic data series including among others, employment figures, price levels, monetary policy measures, and business/consumer activity measures. We use recent economic data to make it more applicable to current investment decisions and avoid the obfuscation that often accompanies older data sets.

Students should walk away with a better understanding of basic economic theory, how it translates into real world application, and knowledge about the distribution of and meaning behind important economic indicators. This is perfect for investment decision makers looking to integrate economic analysis into their decision making process or more experienced “economists” looking for a review of key concepts.

- Basic Macro: fundamental understanding of the global economy; aggregate supply/demand, gaps, stagflation, etc.
- Business & Debt Cycles: determinants of economic growth, Neoclassical vs. Keynesian economics and implications
- Monetary and Fiscal Policy: monetary vs. fiscal policy impacts and trading implications for rates trading desks
- International Trade: comparative advantage and impact of trade treaties on trading strategy
- Balance of Payments and FX: impact of balance of payments and foreign exchange trade strategies

- Understand what each indicator is, importance of and strengths and limitations of each of the following:
- Business Activity: business outlook, durable goods & factory orders report, production, capacity utilization and others
- Employment: employment cost index, employment situation, jobless claims report and related employment figures
- Real Estate: existing home sales, housing starts, new residential sales
- Prices: consumer price index, headline vs. core, producer price index
- Monetary: Federal Reserve Beige Book, Fed communications and signaling, money supply, commercial banks
- Consumer: consumer confidence index, consumer sentiment index, consumer credit report, personal income
- International and Output: international transactions, GDP, productivity and costs
- Other: commodities, 10-year government bonds, currencies, other miscellaneous indicators

This course provides an in-depth introduction to credit risk. Techniques for modeling credit transition matrices are covered in great detail, while several statistical techniques for modeling default probabilities and correlations are explored in depth. Methodologies for modeling credit portfolio risk are covered, including the asset value approach and the structural approach. Prepayment models are developed for Mortgage-Backed Securities (MBS). All models are developed in Excel/VBA.

- Excel - Learn several of Excel's specialized functions. Understand how to use Excel's add-in tools to implement advanced statistical techniques, such as regression analysis. Learn how to use Solver, Excel's optimization package.
- Visual Basic for Applications (VBA) - Learn the fundamental programming structures of the VBA language, and how it can be used to extend Excel's capabilities.
- Statistical foundations - Learn to implement Monte Carlo simulation using Excel/VBA. Learn techniques for improving the speed of convergence, including importance sampling and low-discrepancy sequences. Understand the binomial and Poisson distributions. Learn the fundamental principles of linear regression analysis, as well as Poisson regression. Understand the maximum likelihood and method of moments approaches to statistical estimation.
- Merton's model - Understand Merton's model of credit risk; learn how it is related to the Black-Scholes model and how it can be used to compute default probabilities.
- Credit ratings transition matrices - Understand the structure of a transition matrix. Learn how to estimate a transition matrix with the cohort approach and the hazard rate approach.
- Estimating default probabilities and correlations - Understand how to use linear regression analysis to estimate default probabilities. Learn how to apply Poisson regression to estimate default probabilities. Understand how the asset value approach can be used to estimate default correlations using the method of moments approach and maximum likelihood approach.
- Credit portfolio risk models - Understand different approaches to modeling credit portfolio risk. Learn how to use Monte Carlo and Quasi-Monte Carlo simulation to implement the asset value approach. Learn how the structural approach is used to explain the sources of credit risk, and how it can be implemented as an extension of the Black-Scholes option pricing model.
- Prepayment modeling - Understand the structure of Mortgage-Backed Securities (MBS) and MBS derivatives, such as Interest-Only (IO) strips and Principal-Only (PO) strips. Understand different measures of prepayment speed, such as Single Monthly Mortality (SMM), Conditional Prepayment Rate (CPR) and Absolute Prepayment Speed (ABS). Learn how to implement these measures in Excel.

- Implement statistical foundations, including Monte Carlo simulation using built-in native Excel functions and tools
- Understand the structure of a credit ratings transition matrix and estimate using the cohort approach and the hazard rate approach
- Estimate default probabilities and correlations, using Merton's model of credit risk, linear & Poisson regression analysis, the asset value approach (method of moments and maximum likelihood approaches)
- Simulate and model prepayment rates, incorporating the structure of MBS & related derivatives, including IO and PO strips
- Model different measures of prepayment speed, such as Single Monthly Mortality (SMM), Conditional Prepayment Rate (CPR) and Absolute Prepayment Speed (ABS)
- Utilize Excel's specialized functions, including advanced statistical techniques, and Excel's built-in optimization tools
- Code in Excel VBA: learn the fundamental programming structures and how it can be used to extend Excel's capabilities in Credit Risk Modeling

This course provides an overview of Value at Risk (VaR) modeling for a wide array of financial assets, including stocks, bonds, forward contracts, futures contracts, swaps and options. The key statistical assumptions underlying the VaR methodology are explored; several different models for computing VaR are implemented in Excel. The Delta-Normal approach is used to compute VaR for bonds, stocks and linear derivative securities, such as forwards, futures and swaps, as well as calls and puts. The Delta-Gamma approach is introduced as an alternative to computing VaR for options; this approach can capture the non-linear behavior of an option but at the cost of greater computational complexity.

Full valuation approaches to computing VaR are covered in great detail; these have the advantage of being independent of any distributional assumptions about financial assets. These approaches include Historical Simulation, Weighted Historical Simulation and Monte Carlo Simulation. Several portfolio VaR measures are demonstrated; these are designed to measure the impact of a potential trade on portfolio VaR. These measures are known as Marginal VaR, Incremental VaR and Component VaR.

The course concludes with a discussion of the strengths and weaknesses of the VaR methodology, with a consideration of several alternative possible approaches.

- Excel - Learn several advanced statistical and mathematical functions in Excel. Understand how random numbers can be generated in Excel. Understand how to implement probability distributions in Excel, including the normal distribution. Learn how Excel's add-in tools can be used to implement advanced statistical techniques. Understand Excel's specialized matrix algebra operations.
- Statistical properties of financial assets - gain an in-depth understanding of the statistical concepts that form the foundation for all risk management models, including volatility, covariance and correlation and the normal distribution.
- The Value at Risk methodology - understand the statistical foundations of the Value at Risk framework. Gain insight into how the assumptions of Value at Risk are violated in practice. Understand how to interpret the output of a Value at Risk model.
- Delta-Normal approach to VaR - understand how VaR can be computed from the volatilities and correlations among the assets in a portfolio. Understand how VaR mapping is used to measure the exposure of financial assets to various risk factors. Learn how VaR can be computed for more complex assets, including fixed income products and derivative securities.
- Delta-Gamma approach to VaR - understand how the Delta-Normal approach can be extended to capture the behavior of non-linear assets, such as options.
- Full-valuation approach to VaR - understand how VaR can be computed directly from historical data or from simulated market prices. Gain an in-depth understanding of the Historical Simulation approach, which is used to compute VaR directly from past market returns. Understand how the Weighted Historical Simulation approach more realistically allows for the decay in the impact of past prices over time. Learn how Monte Carlo simulation uses assumptions about the statistical properties of asset returns to compute VaR. Understand how Monte Carlo simulation can be extended to multiple assets through the use of Cholesky Decomposition. Understand the advantages and disadvantages of the full-valuation approaches relative to the delta-normal and delta-gamma approaches.
- Portfolio VaR measures - understand how changes in the composition of a portfolio affect VaR. Be able to implement three important measures of the sensitivity of VaR to changes in a portfolio: marginal VaR, incremental VaR and component VaR and understand how to interpret these measures.
- Extensions of VaR - understand how to compute the Expected Shortfall (ES) measure and be able to interpret it. Understand how VaR may be implemented with non-normal distributions, such as the Generalized Pareto Distribution (GPD), which can better capture the tail behavior of financial returns.

- Explore the statistical foundations and methodology of the VaR framework in Excel and gain insight into how the assumptions of VaR are violated in practice
- Learn the Delta-Normal, Delta-Gamma & Full Valuation approaches to compute VaR for bonds, stocks and linear and non-linear derivative securities, such as forwards, futures and swaps, as well as calls and puts
- Understand how changes in the composition of a portfolio affect VaR and implement VaR sensitivities in a portfolio: marginal, incremental and component VaR
- Comprehend extensions of VaR and how VaR may be implemented with non-normal distributions, such as the Generalized Pareto Distribution (GPD), which can better capture the tail behavior of financial returns
- Utilize Excel's advanced statistical and mathematical functions, from basics of random numbers to implementing probability distributions (including normal distribution) to Excel's specialized matrix algebra operations

This course provides an overview of portfolio modeling. The course reviews several key components of portfolio math, such as standard deviation, correlation and covariance, as well as optimization techniques. Markowitz’ formula for measuring portfolio risk is covered in detail. The equivalent matrix representation is introduced, along with Excel’s matrix algebra functions.

The Capital Asset Pricing Model (CAPM) framework is used to introduce several key concepts, such as beta and the efficient frontier. Excel Solver is used to derive the efficient frontier from a portfolio of stocks. Beta is estimated using linear regression analysis. The Capital Market Line and Security Market Line are derived, showing the relationship between risk and return in equity markets. The Sharpe Ratio is introduced as a measure of relative risk.

- Excel - Learn several advanced statistical and mathematical functions in Excel. Understand how Excel's add-in tools can be used for regression analysis. Learn how to use Excel's specialized matrix algebra operations. Understand how to optimize functions using Excel's Solver add-in.
- Portfolio math - Gain an in-depth understanding of the statistical concepts that form the foundation of portfolio theory, including expected return, standard deviation, covariance and correlation. Learn how to calculate these measures in Excel, and understand their economic significance. Learn how the inputs to a portfolio model can be estimated from historical data using Excel.
- Optimization - Learn the basic principles of constrained and unconstrained optimization using Excel's matrix algebra functions and Solver.
- Markowitz's model - Understand how Markowitz's model is used to measure the risk of a portfolio. Understand the concept of diversification and how it relates to correlation and covariance. Learn how to implement Markowitz's formula for multiple assets using Excel's built-in matrix algebra functions.
- The Capital Asset Pricing Model (CAPM) - Understand the statistical foundations of the CAPM model. Understand how beta is derived and how it is interpreted. Understand the significance of the Capital Market Line and the Security Market Line and how they may be implemented in Excel. Learn how to compute and interpret Jensen's alpha.
- The Efficient Frontier - Understand the properties of the efficient frontier and how it can be implemented using optimization techniques. Learn how to construct the efficient frontier using Excel Solver. Understand how the minimum variance portfolio and the market portfolio are constructed. Learn how to optimize the weights of the assets in a portfolio to earn a target return given any constraints on the risk of the portfolio. Learn how the ability to sell stocks short affects the efficient frontier. Understand how the availability of a risk-free asset impacts the efficient frontier. Understand how portfolio rebalancing may be used to preserve a portfolio's risk and return characteristics over time.

- Extend the fundamentals of CAPM to the foundations of portfolio math, such as standard deviation, correlation and covariance, as well as optimization techniques
- Learn how to easily implement Markowitz's efficient frontier methodology using Excel's matrix algebra functions and array tools to quickly calculate correlations amongst almost infinite set of securities
- Understand and quantify the concept and benefits of diversification and how risk can be reduced with a portfolio of assets
- Start with raw return data for equity securities and construct optimal stock portfolio in Excel; then layer on different asset classes including cash, fixed income and options
- Sensitize and quantify the effect of specific securities in the context of the overall portfolio: for instance, a stock may optimize the stock portfolio but not the overall diversified portfolio
- Utilize Excel to optimize portfolio construction based on maximizing returns and minimum variance mix of securities, using advanced statistical and mathematical functions

This course presents an overview of the Basel Accords and how they have evolved since their debut in 1988. The three-pillar structure is explained in great detail, with a focus on the measurement of capital requirements under Pillar 1. The Value at Risk methodology is covered in depth as a technique for computing market risk capital requirements. The key features of the approaches to computing credit risk capital are covered: the Standardized Approach, the Foundation Internal Ratings Based Approach and the Advanced Internal Ratings Based Approach.

The three approaches to computing operational risk capital are explored in detail: the Basic Indicator Approach, the Standardized Approach and the Advanced Measurement Approach. The new features of Basel III are explained, including changes to the measurement of Tier 1 and Tier 2 capital, updates to the calculation of credit risk capital and a more advanced approach to measuring liquidity risk.

- Overview of the Basel Accords - understand how the Basel Accords have evolved since being introduced in 1988. Learn how Basel II improves risk measurement and how it is organized into three pillars: determining regulatory capital for market, credit and operational risk; supervisory review and market discipline. Gain a broad understanding of the different methods that are used to compute capital requirements for market risk, credit risk and operational risk under Pillar 1. Understand the four key principles of supervisory review under Pillar 2: having a process for assessing overall capital adequacy, evaluation of banks' internal capital adequacy strategies, expecting banks to hold more capital than required, and early intervention. Understand that Pillar 3 is designed to impose market discipline on banks by requiring them to disclose key information about risk and capital holdings.
- Modeling capital requirements for market risk - understand the Value at Risk methodology and how it is used to calculate capital requirements under the Basel Accords.
- Modeling capital requirements for credit risk - learn how the Standardized Approach assigns risk weights to different types of assets, such as claims against corporations, loans to individuals and small businesses, residential and commercial real estate loans and claims against sovereign governments and central banks. Understand how the Standardized Approach incorporates several risk mitigating techniques, such as collateral, netting and credit derivatives. Understand how the Foundation Internal Ratings Based (IRB) Approach enables banks to use their own estimates of default probabilities, while the Advanced Internal Ratings Based Approach allows banks to estimate their own default probabilities, loss given default, exposure at default and effective maturity for each exposure.
- Measuring capital requirements for operational risk - understand how the Basic Indicator Approach computes the operational capital charge as 15% of a bank's average gross income. Learn how the Standardized Approach divides a bank's activities into eight business lines, and weights each with a risk factor. Learn how the Advanced Measurement Approach enables a bank to use internal data to determine the appropriate operational risk capital charge.
- Basel III - understand the changes that will occur under Basel III. These include updated definitions for Tier 1 and Tier 2 capital, the risk-based capital ratio, countercyclical capital buffers, changes to the Standardized and IRB approaches to credit risk and the measurement of liquidity risk.

Similar to the Accounting Boot Camp above, this program covers the basics of financial accounting including the major financial statements (Income Statement, Balance Sheet and Cash Flow) and the most important components of each as it relates to financial analysis. Concentration is placed on the integration of the financial statements and provides a full integrated grasp of accounting from a finance perspective.

- Income Statement, Balance Sheet, Cash Flow Statement defined and importance explained
- Components of each major financial statement
- IS: Revenue and expense items, EBITDA defined and discussed
- BS: Assets, Liabilities, and Shareholders' Equity
- CF: Cash Flow from Operations, Investing Activities and Financing
- Understand how financial statements are inter-related
- Relationship between the Income Statement and Cash Flow Statement
- Explanation of Accrued Expenses, Receivables and Payables and how they tie together

- Overview and explanation of major financial ratios, including liquidity, asset management, debt management, profitability, and market value ratios

- Interactive group project break-out to analyze, compare and contrast financial statements of various companies; discussion and recommendation of which companies are more attractive

- Desire to learn accounting terminology, general business smarts and common sense

2.5 hours / 4 hours

“How to Analyze a 10-K” builds upon basic accounting and financial statements concepts to focus on the major components of a 10K SEC filing, including the Management Discussion & Analysis, Financial Condition and Results and how to analyze the myriad of footnotes.

It’s simply not enough to merely analyze the financial statements, but especially critical to plow through and understand the footnotes and the management discussion & analysis, where the most of the qualitative information is contained. The challenge is that there are a myriad of footnotes and figuring out which are the important and relevant ones is no small feat. This course provides the overview and analysis for most major common footnotes and gives you a starting point to plow in deeper when we build our financial models. The irony is that in the process of crunching numbers and building numbers, reading comprehension, particularly on the 10K is probably even more important in terms of getting the right inputs.

- What is a 10K and how is it different from an Annual Report?
- Major components of a 10K filing
- Detailed discussion on the MD&A section (Management Discussion & Analysis)
- Detailed discussion of all major footnotes and how to analyze and interpret major categories of footnotes: general footnotes, Balance Sheet footnotes, contingencies footnotes, Income Statement footnotes, Capital Structure footnotes, many other footnotes
- Brief discussion of Proxy statement and its utility
- Brief discussion and introduction to differences between US and International GAAP

- Interactive group project break-out to analyze, compare and contrast 10K's of various companies
- Concentration on: revenue terminology differences, balance sheet analysis, cash flow analysis, analysis and comparison of footnotes, MD&A / segment breakdown and discussion

- Desire to learn accounting terminology, general business smarts and common sense

2 hours / 3 hours

Learn the basic finance concepts that are the backbone of any financial analysis. An understanding of these basic core tools is absolutely critical to mastering any Wall Street analysis. Topics covered include risk / return trade-offs, time value of money, cost of capital, Gordon growth model and basic valuation theories.

Moving beyond the accounting and 10K analysis, this course provides an introduction to the major concepts in finance that many people take for granted. Understanding financial modeling, valuation, and the capital markets in general would be difficult without a full grasp of these fundamental concepts.

- Risk / Return: Calculating returns and measuring risk, benefits of diversification (systematic and unsystematic risk, total risk, market risk and firm-specific risk), security market line, capital asset pricing model, beta
- Time Value of Money: present and future values, net present value, internal rate of return, compounding, discounting, uneven cash flow streams, simple vs. effective rates, periodic rates, CAGR (Compound Annual Growth Rates)
- Basic Valuation Theories: value of any asset, dividend discount model (theory only!), Gordon growth model, growing perpetuity
- Cost of Capital: sources of capital, component costs, weighted average cost of capital

- Desire to learn finance terminology, general business smarts and common sense

1.5 hours / 2 hours

Company profiles are the most basic overview and descriptions of a company being analyzed. Profiles supply the most basic and fundamental, yet probably the most important aspects of a company. Gain an introduction and explanation of the major components of a profile for a publicly traded company.

- Summary business description and financial summary and trading analysis
- Stock price charts: price / volume graphs, indexed stock price history, moving averages, shares traded at various prices, forward PE history, historical EBITDA multiple valuation trends, beta and volatility, management and Board of Directors biographies, ownership analysis

- Desire to learn finance terminology, general business smarts and common sense

1 hour / 1 hour

Build very quick financial summary and trading statistics exhibit using historical results, analyst estimates & basic assumptions in Excel. This course will allow you to understand basic structure of building an analysis in Excel and navigating through and becoming efficient in Excel.

- Build a very simple financial overview exhibit by inputting historical results, analyst estimates and basic projections

- Build trading statistics exhibit displaying standard market valuation multiples

- Accounting & Financial Statements Integration
- Finance 101: Introduction to Finance
- Corporate Valuation Methodologies
- Prior experience with Excel, decent ability to type and follow instructions

1.5 hours / 2 hours

Learn how corporations are valued and the major analytical tools that are used. Go beyond academic theory to real-world methods as used by professionals; includes a crucial primer to Corporate Finance and its non-theoretical application. Apply learning objectives and goals immediately by analyzing a $6 billion+ transaction. Topics covered include: (i) how to value a company (trading comps, deal comps, DCF, LBO, break-up and asset valuation); (ii) importance of Enterprise Value, EBITDA, capital structure, leverage and WACC; (iii) analyze valuation multiples and ratios; why are PE ratios sub-optimal as a valuation metric?; (iv) practical, non-theoretical application of introduction to corporate finance.

- How much is a company worth? Why is the current stock price not an accurate indication of value?
- How do you tell if a company is under-valued or over-valued?
- Why would one company command a higher or lower premium than its direct competitor?
- What is the importance between enterprise value and equity value?
- Why do we include minority interest and exclude capital leases?
- What is the relevance of capital structure and leverage on a companys value?
- Why and how is corporate finance so critical to managing a firm's profitability?
- What exactly does a multiple tell us? Learn the correct way to use P/E ratios and other multiples
- Why are P/E ratios misunderstood and what other profitability-related ratios are more important?
- What is EBITDA and why is it so important?
- Utilizing the correct numerator for multiples analysis
- Calculating implied value based on multiples analysis
- What is a leveraged buyout and what are the main motives for LBOs?

- Analysis of "football field" and reference ranges
- Detailed discussion of the major valuation methodologies, their nuances and application in the real-world
- Analyzing, comparing and contrasting trading comps, deal comps and premiums paid
- Detailed explanation of Discounted Cash Flow (DCF) valuation, its theory and application
- Discussion of why the DCF is arguably one of the most important analyses while simultaneously one of the most academic and least practical of them all
- Review of WACC (weighted average cost of capital), CAPM (Capital Asset Pricing Model)
- How do you approach valuing a company with completely disparate businesses?

- Interactive group project break-out to analyze, compare and contrast financial statements of various companies; discussion and recommendation of which companies are more attractive

- Accounting & Financial Statements Integration
- How to Analyze a 10K
- Finance 101: Introduction to Finance

2 hours / 2.5 hours

This course builds upon, and implements in Excel, the fundamental financial analysis and valuation topics. Create a top-down, five year income statement projection model and then construct a basic discounted cash flow analysis on top of your projection model.

** Don’t get thrown off by the word “basic” - this Basic Financial Modeling serves as the fundamental basis for all of our additional Excel-based courses. Before you “graduate” onto our advanced modeling courses, we HIGHLY recommend you take this course for the full background on working efficiently in Excel the way we want you to, otherwise you may have a much steeper learning curve in our other classes. **

- Input historical financial results and recast as necessary
- Calculate historical growth rates and margins which serve as the basis for your projection assumptions
- Calculate your projected profitability from revenue down to EPS
- Learn the correct way to calculate diluted shares outstanding
- Brief discussion and introduction to differences between U.S. and International GAAP

- How is a discounted cash flow analysis actually constructed?
- What is the difference between the terminal value and perpetuity growth approaches and what are the implications on value?
- Learn subtle nuances including the proper figure for "cash flow" in perpetuity growth models

- Accounting & Financial Statements Integration
- Finance 101: Introduction to Finance
- Corporate Valuation Methodologies
- Company Overview

4 hours / 5 hours

Build upon Corporate Valuation Methodologies with a short, hands-on exercise to hone in the core concepts in practice before diving into the more advanced valuation modeling topics. Translate the valuation concepts into real-life case study that demonstrates and shows the valuation principles.

- Calculate current trading and valuation statistics of industry competitors
- Project value of a company and stock based on estimated industry average valuation multiples
- Construct a sample DDM and DCF valuation analysis
- Estimate WACC, component costs of capital and CAPM and incorporate into valuation analysis

- Accounting & Financial Statements Integration
- Finance 101: Introduction to Finance
- Corporate Valuation Methodologies

1.5 hours / 2 hours

Build a fully integrated 5-year financial statement projection model by projecting the Income Statement, Balance Sheet, Cash Flow Statement, the Debt Sweep to balance model and Interest Schedule. This course will allow you to have a complete financial model projecting run-rate profitability, on which you can easily layer valuation and merger models.

- How do you project a company's Income Statement from revenues and expenses down to Net Income?
- What are the different methodologies to forecasting the different types of assets on the balance sheet and how do they compare and contrast with projecting liabilities?
- How do you project the shareholders' equity account?
- What is the importance of financial ratios in building the balance sheet projections?
- How do you approach building an integrated cash flow statement?
- How do you build each component of the cash flow statement and why is cash the last item to project?

- Incorporate calculation and payment of dividends into your integrated financial model
- Emulate announced share repurchase program by estimating implied price and shares repurchased

- Balance the model using the debt schedule and debt sweep logic - the most important analysis in terms of balancing the model!!
- How does the cash actually flow through the model?
- Incorporate automatic debt payments and use cash generated to either pay down debt or build cash
- How does the revolver facility actually balance the model? Avoid messy nested "if" statements!!
- How does the balance sheet and financial statements balance by itself without the use of "plugs"?
- How are the financial statements integrated using the Interest schedule?
- What are circular references, why should they be avoided and how to get around circular references

- Accounting & Financial Statements Integration
- Company Overview
- Basic Financial Modeling
- Efficiency in Excel

3.5 hours / 5 hours

Build upon completed core model and layer on valuation analysis. Construct DCF valuation model, detailed revenue segment build-up, project more precise depreciation schedule, calculate credit & leverage statistics and ratios, construct a reference range and football field summary valuation. This Enhancements course will allow you to have a much more detailed stand-alone financial model and valuation model!

- Build a stand-alone depreciation schedule to better estimate working capital changes and free cash flow by depreciating existing PPE as well as new capital expenditures
- Credit and leverage statistics ratio analysis with automated comparisons vs. S&P rating statistics

- Model out historical change in key drivers of growth and project future detailed growth
- Analyze and break down growth based on publicly available data and inputs from 10K filing
- Incorporate and remove effect of growth from non-core items such as foreign exchange rate fluctuations
- Project future detailed growth assumptions that roll up into larger projection model

- Model out historical change in key drivers of growth and project future detailed growth
- Analyze and break down growth based on publicly available data and inputs from 10K filing
- Incorporate and remove effect of growth from non-core items such as foreign exchange rate fluctuations
- Project future detailed growth assumptions that roll up into larger projection model

- Accounting & Financial Statements Integration
- Finance 101: Introduction to Finance
- Corporate Valuation Methodologies
- Company Overview
- Basic Financial Modeling
- Advanced Financial Modeling - Core Model
- Extreme efficiency in Excel

3 hours / 4 hours

Further enhance core integrated financial model by building a detailed tax schedule incorporating NOLs (Net Operating Losses), Section 382 limitations on NOL usage and differences between book and tax depreciation. Dive deep into re-calculating depreciation for tax purposes based on accelerated depreciation - MACRS (Modified Accelerated Cost Recovery System) in the US. Incorporate and flow the accelerated tax depreciation into the larger tax schedule to account for differences in GAAP Pre-Tax Income and Taxable Income. Finish up with a quick Residual Income analysis and EVA (Economic Value Added) analysis, which complements our Enhancements Part I course.

- GAAP depreciation schedule is off simplistic straight-line assumption while tax write-offs allow for accelerated depreciation schedule
- Incorporate real-world MACRS schedule (US IRS tax code) to depreciate assets based on various property classes and recovery year
- Integrate with new capital expenditures assumptions by asset class
- Compare and contrast with GAAP depreciation
- Gain better precision into cash flow modeling and working capital line items

- Combine GAAP and tax depreciation schedule into tax schedule for model's deferred tax liability
- Further enhance detailed tax schedule incorporating NOLs (Net Operating Losses)
- Incorporate limitations on NOL usage based on change of control provisions
- Construct detailed accelerated tax depreciation schedules based on MACRS
- Properly build-up detailed deferred tax assets and liabilities Balance Sheet accounts

- Understand differences among traditional DCF analysis vs Residual Income and EVA analysis
- Calculate equity capital charge total capital charge
- Use correct discount rate for each analysis
- Compare and contrast pros and cons and the purpose of each analysis

- Calculate equity capital charge total capital charge
- Use correct discount rate for each analysis
- Compare and contrast pros and cons and the purpose of each analysis

- Basic Financial Modeling
- Advanced Financial Modeling - Core Model
- Enhancements to the Core Model - Part 1

3 hours / 4 hours

Learn how to build detailed revenue and segment build-ups into your larger financial model by quantifying the drivers of growth. Many financial projection models are based off simple revenue growth rate and expense margin assumptions, resulting in reduced precision in the projection model. This course teaches various approaches to true, bottoms-up, fundamental analysis for both publicly trade and listed companies as well as private companies or entities in which you have additional detail. We start by understanding the logic of channel checks and building the case for growth rates based on qualitative analysis and comprehension of industry- and company-specific drivers of growth. We then turn around and quantify our qualitative analysis by incorporating into our financial model on a business and operating segment basis. The results of the build-up analysis rolls into the Income Statement from your core integrated financial projection model. In addition, layer on sensitivity and scenario analysis to easily toggle through various cases, including base (management) case, upside and downside cases.

- Model out historical change in key drivers of growth and project future detailed growth
- Analyze and break down growth based on publicly available data and inputs from 10K filing
- Incorporate and remove effect of growth from non-core items such as foreign exchange rate fluctuations
- Project future detailed growth assumptions that roll up into larger projection model instead of just 10% growth
- Understand additional granularity for various industries including retail, manufacturing, financial services, energy, etc.

- Calculate and analyze different operating segments as reported in public filings to roll-up into IS
- Adjust for extraordinary items by segment based on MD&A and disclosed footnotes
- Extract, utilize and incorporate volume and pricing increases into operating segment performance
- Estimate and project future revenue and segment income and allocate for corporate overhead
- Estimate projected COGS and SG&A on the entire base after operating build-up

- Bridge the gap and quantify future, as-yet-unachieved growth initiatives based on concrete assumptions
- Analysis would roll into core "organic growth" model and sensitized
- Model out effects of hiring new sales representatives and the associated increased revenue
- Triangulate new revenue and tiered commission expenses due to renewal business
- Calculate incremental salary and bonus cost of new sales representatives
- Calculate additional cost of sales and other expenses related to new business

- Project sources of revenue based on growth in number of accounts and customers
- Model out revenue per account and associated commissions and expenses
- Incorporate rate increases into model
- Further enhance model via sensitivity & scenario modeling and analysis
- Detailed build-up consolidates into Consolidating Income Statement which feeds into model
- Account for inter-company eliminations in historical pro forma model and projections

- Layer sensitivity analysis on top of segment build-up to incorporate various assumptions and cases
- Build multiple scenarios and cases, including Base Case, Optimistic & Pessimistic Cases
- Toggle and sensitize profitability and cash flow of model based on various case assumptions

- Basic Financial Modeling
- Advanced Financial Modeling - Core Model

4 hours / 5 hours

Learn how corporations are valued and the major analytical tools that are used. Go beyond academic theory to real-world methods as used by professionals; includes a crucial primer to Corporate Finance and its non-theoretical application. Apply learning objectives and goals immediately by analyzing a $6 billion+ transaction. Topics covered include: (i) how to value a company (trading comps, deal comps, DCF, LBO, break-up and asset valuation); (ii) importance of Enterprise Value, EBITDA, capital structure, leverage and WACC; (iii) analyze valuation multiples and ratios; why are PE ratios sub-optimal as a valuation metric?; (iv) practical, non-theoretical application of introduction to corporate finance.

- How much is a company worth? Why is the current stock price not an accurate indication of value?
- How do you tell if a company is under-valued or over-valued?
- Why would one company command a higher or lower premium than its direct competitor?
- What is the importance between enterprise value and equity value?
- Why do we include minority interest and exclude capital leases?
- What is the relevance of capital structure and leverage on a companys value?
- Why and how is corporate finance so critical to managing a firm's profitability?
- What exactly does a multiple tell us? Learn the correct way to use P/E ratios and other multiples
- Why are P/E ratios misunderstood and what other profitability-related ratios are more important?
- What is EBITDA and why is it so important?
- Utilizing the correct numerator for multiples analysis
- Calculating implied value based on multiples analysis
- What is a leveraged buyout and what are the main motives for LBOs?

- Analysis of "football field" and reference ranges
- Detailed discussion of the major valuation methodologies, their nuances and application in the real-world
- Analyzing, comparing and contrasting trading comps, deal comps and premiums paid
- Detailed explanation of Discounted Cash Flow (DCF) valuation, its theory and application
- Discussion of why the DCF is arguably one of the most important analyses while simultaneously one of the most academic and least practical of them all
- Review of WACC (weighted average cost of capital), CAPM (Capital Asset Pricing Model)
- How do you approach valuing a company with completely disparate businesses?

- Interactive group project break-out to analyze, compare and contrast financial statements of various companies; discussion and recommendation of which companies are more attractive

- Accounting & Financial Statements Integration
- How to Analyze a 10K
- Finance 101: Introduction to Finance

2 hours / 2.5 hours

Build a basic, quick and dirty, back-of-the-envelope trading comps analysis (analysis of selected publicly traded companies). This course will allow you to quickly construct a relative valuation analysis and serves as a critical basis for our Complex Trading Comps Analysis course.

- Input historical results and analyst projections for comparable companies (public traded competitors)
- Calculate current standalone market valuation multiples

- Accounting & Financial Statements Integration
- Corporate Valuation Methodologies
- Company Overview
- Basic Financial Modeling

1 hour / 1.5 hours

Relative Valuation Basics is an extracted section from Advanced Financial & Valuation Modeling - Enhancements course module. In particular, we construct the reference range and football field analysis to complete the valuation picture. We recommend taking the following courses in order to gain the holistic relative valuation view:

- Quick & Dirty Trading Comps Analysis
- Relative Valuation Basics

- Build reference range that quantifies fundamental and valuation methodologies
- Summarize valuation modeling techniques including: quick & dirty trading comps, reference range analysis
- Crystallize and appreciate the capital structure and the relationship between total enterprise value, equity value and price per share
- Utilize best practices to reduce average construction time from 2 hours to 30 seconds
- Update dynamic football field to graphically summarize valuation metrics
- Step-by-step 25 page graphic instruction on how to create football field from scratch

- Accounting & Financial Statements Integration
- Finance 101: Introduction to Finance
- Corporate Valuation Methodologies
- Company Overview
- Basic Financial Modeling
- Quick & Dirty Trading Comps Analysis
- Advanced Financial Modeling - Core Model
- Extreme efficiency in Excel

0.5 hour / 1 hour

Build a detailed, thorough trading comps analysis (analysis of selected publicly traded companies) and learn how to properly construct a relative valuation analysis the correct way as well as how to normalize financials for extraordinary items, non-recurring and restructuring charges. This course itself isn’t terribly complex or difficult, but is very tedious, time consuming and at times frustrating as it requires a great deal of patience, attention to detail and reading comprehension. Hence, the first four letters of the title “analyst” ring true - perfection is required to get the right numbers.

- Learn the steps required to construct a trading comps analyses and how to filter straight through to the relevant information
- Best practices on inputting and checking data, "Do's and Don'ts" tips, specific Income Statement and Balance Sheet reminders
- Calculate LTM (last twelve months) and handling projections for comparability
- Weighted average cost of capital analysis

- Our comps module covers just about 98% of ALL adjustments one would possibly encounter!! Learn:
- When and when not to adjust for asset impairments and write-downs
- How to adjust for zero-coupon convertible securities that are simultaneously in-the-money and out-of-the-money
- The effects of a LIFO / FIFO change in accounting recognition
- How to adjust for changes in accounting principle and discontinued operations
- The difference between below-the-line and above-the-line adjustments and evaluate when an item affects both, one or the other or neither
- How to properly account for difference fiscal year ends
- Proper treatment of capital leases
- When to use reported GAAP Income Statement figures and when to use Pro Forma figures

- Accounting & Financial Statements Integration
- Finance 101: Introduction to Finance
- Company Profiles
- Corporate Valuation Methodologies
- Company Overview
- Basic Financial Modeling
- Quick & Dirty Trading Comps Analysis
- Efficiency in Excel

4.5 hours / 6.5 hours

Build a deal comps analysis (analysis of selected acquisitions), similar to trading comps analysis, but from an acquisition context using historical transaction data instead of current market valuation data. This course will allow you to properly construct a deal comps analysis the correct way, uncovering some of the nuances related to calculating transaction value and purchase price. This course is not a complex course and in fact, is a relative breeze compared with our Complex Trading Comps course, but builds upon the concepts in the latter course.

- Learn the steps required to construct a deal comps analyses and how to filter straight through to the relevant information
- Plow through the myriad of deal information such as 8K filings, 10K filings, press releases and industry databases
- Calculate transaction value (purchase price), premiums and multiples in past deals
- Uncover subtle nuances of determining correct enterprise value and avoid valuation mistakes

- Accounting & Financial Statements Integration
- Company Profiles
- Corporate Valuation Methodologies
- Company Overview
- Basic Financial Modeling
- Quick & Dirty Trading Comps Analysis
- Complex Trading Comps Analysis
- Efficiency in Excel

1.5 hours / 2 hours

This course builds upon our basic Corporate Valuation course and introduces the complex nuances associated with analyzing and valuing private companies. We dive deep into the details and concepts deeply imbedded with valuation of large publicly traded and listed companies and take it to next level by applying it to companies and regions with very sparse publicly available data. Learn nuances of adjusting for DCF valuation, WACC analysis when no data exists, how to select and adjust peer comparables when no “good comp” exists. While there is certainly no magic bullet to the tough questions and lack of information, there are techniques and best practices to get us as close as possible.

- Detailed explanation of Discounted Cash Flow (DCF) valuation, its theory and application
- Discussion of why the DCF is arguably one of the most important analyses while simultaneously one of the most academic and least practical of them all
- Analysis of EBITDA and growth approaches to Terminal Value estimation and pros and cons of each
- Discussion on the correct Cash Flow starting point for Gordon Growth Rate: long-term relationship between CapEx and depreciation and the theoretical implications on DCF
- Computing reasonable perpetual growth rate and the nuances associated
- Perpetual growth rate method and applications: how to value high growth companies in which the terminal year growth has not yet reached steady state growth for perpetuity

- Application of WACC and matching of cash flows with the riskiness of the cash flows
- Correct Cost of Debt to use: coupon rate, current YTM if available vs. investment banker rate
- Estimating Cost of Debt when there is no outstanding debt or interest rates unavailable
- Cost of Equity and CAPM (Capital Asset Pricing Model): theory, implications and application
- Concept of diversification and risk/reward model and practical approach as discount factor
- Correct risk free rate and market risk premium and the various premiums and adjustments made to MRP
- Concept of beta and sensitivity to the market and adjusting for capital structure differences
- Estimating beta with none present, and un-levering and re-levering betas to adjust for earnings volatility
- Use of beta to manipulate and influence discount rate to affect overall DCF valuation
- Thinking through the logic of a company with a ton of cash on the books and adjustments (if any) to beta
- Determining the correct capital structure (Debt & Equity / Capitalization) - your own or industry ideal?
- Adjusting WACC and DCF for private companies, liquidity, size and country-specific adjustments

- Importance of DCF, NPV & IRR analysis for start-ups, growth capital and project finance
- Private company PE ratios and nuances associated with Equity Value / Net Income as a proxy
- Short, brief discussion on industry specific valuation and introduction to basic nuances and differences
- Brief honorable mention of alternative valuation methodologies

- TEV: what is the correct treatment of minority interest and capital leases from a standalone valuation aspect vs. credit perspective vs change of control
- What is the relevance of capital structure and leverage on a company's value?
- Crystallizing Enterprise Value: Proper Allocation of TEV in HoldCo context
- Case study analyzing proper allocation of value of public traded parent and subsidiaries
- Analysis of market valuation attribution to standalone parent and majority owned subsidiary
- Difference in treatment of TEV based on if subsidiary's debt is owed to third party or to parent
- Reconciliation of book value treatment of Minority Interest vs. minority owned percentage of sub

- Accounting & Financial Statements Integration
- Finance 101
- Corporate Valuation Methodologies & Corporate Finance
- Basic Valuation Techniques

3 hours / 4 hours

Learn how to build detailed revenue and segment build-ups into your larger financial model by quantifying the drivers of growth. Many financial projection models are based off simple revenue growth rate and expense margin assumptions, resulting in reduced precision in the projection model. This course teaches various approaches to true, bottoms-up, fundamental analysis for both publicly trade and listed companies as well as private companies or entities in which you have additional detail. We start by understanding the logic of channel checks and building the case for growth rates based on qualitative analysis and comprehension of industry- and company-specific drivers of growth. We then turn around and quantify our qualitative analysis by incorporating into our financial model on a business and operating segment basis. The results of the build-up analysis rolls into the Income Statement from your core integrated financial projection model. In addition, layer on sensitivity and scenario analysis to easily toggle through various cases, including base (management) case, upside and downside cases.

- Model out historical change in key drivers of growth and project future detailed growth
- Analyze and break down growth based on publicly available data and inputs from 10K filing
- Project future detailed growth assumptions that roll up into larger projection model instead of just 10% growth
- Understand additional granularity for various industries including retail, manufacturing, financial services, energy, etc.

- Calculate and analyze different operating segments as reported in public filings to roll-up into IS
- Adjust for extraordinary items by segment based on MD&A and disclosed footnotes
- Extract, utilize and incorporate volume and pricing increases into operating segment performance
- Estimate and project future revenue and segment income and allocate for corporate overhead
- Estimate projected COGS and SG&A on the entire base after operating build-up

- Bridge the gap and quantify future, as-yet-unachieved growth initiatives based on concrete assumptions
- Analysis would roll into core "organic growth" model and sensitized
- Model out effects of hiring new sales representatives and the associated increased revenue
- Triangulate new revenue and tiered commission expenses due to renewal business
- Calculate incremental salary and bonus cost of new sales representatives
- Calculate additional cost of sales and other expenses related to new business

- Project sources of revenue based on growth in number of accounts and customers
- Model out revenue per account and associated commissions and expenses
- Incorporate rate increases into model
- Further enhance model via sensitivity & scenario modeling and analysis
- Detailed build-up consolidates into Consolidating Income Statement which feeds into model
- Account for inter-company eliminations in historical pro forma model and projections

- Layer sensitivity analysis on top of segment build-up to incorporate various assumptions and cases
- Build multiple scenarios and cases, including Base Case, Optimistic & Pessimistic Cases
- Toggle and sensitize profitability and cash flow of model based on various case assumptions

- Basic Financial Modeling
- Advanced Financial Modeling - Core Model

4 hours / 5 hours

Pro Forma financial statements are a tool to recast financial results in a manner that is more representative of future performance and to remove the effects of private ownership. Pro Forma financial statements have one or more assumptions or hypothetical conditions built into the data and are often used to develop core earnings capacity (quality of earnings) when the objective is to value a company for sale to a third party or for internal perpetuation. The goal is to examine a sampling of the most common types of Pro Forma adjustments most often seen when valuing closely-held entities. Similar to analyzing one-time adjustments for public companies, the adjustments can affect both revenues and expenses, increasing or decreasing either one. However, private company pro form adjustments require a much more detailed analysis of each expense line to adjust for the effects of private ownership.

- How to recast financial results to be more representative of future performance and adjust for the effects of private ownership
- Understand the different types of adjustments required, ranging from discretionary to non-recurring to standalone corporate entity
- Comprehend the major types of revenue adjustments to isolate true, organic revenue base
- Learn the right questions to ask regarding new clients, lost clients, profit sharing agreements and more
- Plow through all the expense line items, focusing on SG&A expenses
- Apply industry-wide rules of thumbs on compensation and benefits
- Adjust for the impact of key officers and management's run-rate compensation level
- Dive in deep on operating expenses, from auto expenses/allowances to advertising/marketing, etc
- Adjust for taxes from a private, pass-thru entity to a standalone corporation
- Analyze key Balance Sheet adjustments such as midnight shareholder dividends and officer loans

- Accounting & Financial Statements Integration
- Company Overview
- Basic Financial Modeling

1.5 hours / 2.5 hours

This Merger Modeling - Earnout Discussion module builds upon our M&A Deal Structuring and Merger Modeling Basics course by reconciling differences that arise in private middle-market transactions in which a buyer wants to be rewarded for future growth and a seller is only willing to pay for growth that has been achieved. But, the seller reckons - “why should I sell when I believe I can achieve greater growth and then sell for an even larger valuation at that future point”. The main tool to bridge this gap is for the seller to put his money where his mouth is - if you say you can achieve $1 billion of revenue, then prove it - one should be willing to accept deferred, contingent payments for such future growth that has yet to be realized. In this add-on module, we explore different ways to analyze and structure earnouts.

- Construct a sample earnout model based on a base earnout and a "super-earnout"
- Create a two-tiered earnout structure that is dependent on achieving management projections
- Structure earnout based on both Revenue and EBITDA targets
- Evaluate the "base" target financial goals and calculate corridor earned
- Review best practices in calculating the actual earnout earned
- Repeat analysis for second earnout tier: the "super-earnout", a much more difficult to achieve set of financial projections
- Evaluate pros and cons of being too optimistic in management projections vs. being too pessimistic

- Accounting & Financial Statements Integration
- Basic Financial Modeling
- M&A Deal Structuring
- Merger Modeling Basics
- Segment Build-up & Sensitivity Modeling
- Private Company Pro Forma Modeling

1 hour / 1.5 hours