Chapter 1. Financial Modelling Basics

• What is Financial Modelling
• Financial Models Application
• Types of Financial Models
• Financial Modelling Guidelines
• Income Statement (Profit and Loss Account)
• Cash Flow Statement & its components
• Balance Sheet
• 3-Statement Model Integration (linking P&L → BS → CF)
• Model Architecture & Best Practices (hardcoding, color coding, error checks)
• Scenario & Sensitivity Analysis Fundamentals

Chapter 2. Financial Ratios

• Liquidity Ratios
• Leverage Ratios
• Turnover Ratios
• Profitability Ratios
• Market Value Ratios
• DuPont Analysis
• Ratio-based Red Flags & Interpretation in Models

Chapter 3. Components of Balance Sheet

• Shareholders' Equity
• Depreciation
• Goodwill
• Non-Controlling Interest
• Deferred Tax Liability
• Time Value of Money (Financial Mathematics)
• Internal Rate of Return / Net Present Value (Valuation)
• Working Capital & Working Capital Adjustments
• Debt Schedule & Amortization

Chapter 4. Using Excel for Financial Modelling

• Workbook and Worksheet (Examples to Excel 365/2021)
• Manipulating Data
• Worksheet Formatting
• Excel Formulas (but expand)
• Merge into Manipulating Data
• Financial Charts & Dashboards
• Macros with VBA basics (intro to Power Query)
• Essential Keyboard Shortcuts
• EMI Calculation in Excel
• Iterating Circular References
• Key Financial Functions (XNPV, XIRR, OFFSET, INDEX/MATCH, SUMIFS)
• Data Tables for Sensitivity Analysis (1-way & 2-way)
• Named Ranges & Dynamic Arrays
• Power Query for Financial Data Cleanup

Chapter 5. Valuation

• Valuation Basics
• Discounted Cash Flow (DCF)
• Estimating Future Cash Flow
• Free Cash Flow to Firm (FCFF)
• Free Cash Flow to Equity (FCFE)
• Weighted Average Cost of Capital (WACC)
• Cost of Debt & Cost of Equity
• CAPM, Risk-Free Rate, Beta, Market Risk Premium
• Trading & Transaction Comparables
• Football Field Analysis
• Mergers and Acquisitions (M&A Modelling)
• Terminal Value (Gordon Growth vs Exit Multiple)
• Enterprise Value vs Equity Value Bridge
• Relative Valuation — EV/EBITDA, P/E, P/B multiples
• Sum-of-the-Parts (SOTP) Valuation

Chapter 6. M&A Modelling (New Section)

• Merger Model Overview & Deal Structure
• Accretion / Dilution Analysis
• Purchase Price Allocation (PPA)
• Pro Forma Combined Financial Statements
• LBO (Leveraged Buyout) Model Basics

Chapter 7. Revenue & Cost Modelling / FP&A (New Section)

• Revenue Build-Up (Volume × Price, subscription, unit economics)
• Cost Build-Up (fixed vs variable, COGS, OpEx structure)
• EBITDA Bridge & Waterfall Charts
• Budget vs Actuals & Variance Analysis
• Rolling Forecasts & Dynamic Models

Chapter 8. Case Studies

• Case Study 1 → Specify industry (e.g., manufacturing / FMCG 3-statement model)
• Case Study 2 → Specify type (e.g., DCF valuation of a listed company)
• Case Study 3 — M&A / Accretion-Dilution Model
• Case Study 4 — Startup Financial Plan & Funding Model

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