Financial Modeling and Valuation Analyst (FMVA) Certification Course

Why select this training course?

Financial modeling and valuation provide the full spectrum of tools and methods used in successful businesses. It provides the necessary practical skills based on real examples and applications. The course by Rcademy is based on thoroughly designed content that can be used for consulting and training.

When do businesses use financial modeling?

Businesses use financial modeling for a variety of purposes, including:

• Investment Analysis
• Projections and Forecasting
• Capital Budgeting
• Mergers and Acquisitions
• Valuation
• Risk Management
• Strategic Planning

How is financial modeling performed?

Financial modeling involves creating a mathematical representation of a financial system or process to make predictions and evaluate different scenarios. The following steps outline the basic process of financial modeling:

• Define the purpose and scope of the model
• Collect relevant financial and operational data
• Choose a suitable framework for the model
• Enter assumptions about future conditions
• Develop the mathematical representation of the financial system or process
• Validate the model by comparing its outputs to historical data and checking its logic and calculations.
• Analyse the results

The Financial Modeling and Valuation Analyst (FMVA) Certification Course by Rcademy uses heavily practical and theoretical techniques to provide high-quality training and skills to any participant who wishes to acquire a practical understanding of the complex financial modeling and valuation course. Some of the skills gained from this course include best practices in model design, including various layout and data structure methods, ensuring transparency, dealing with circularity, balancing complexity with the appropriate flexibility, error checking, and model audit. It will also cover extensive data analysis and manipulation, scenario analysis, optimization, sensitivity, and simulation, how to effectively choose Excel functions and how they work, and various functions used in key application areas within any business, including VBA. This well-designed Rcademy course will use unique approaches to illustrate and demonstrate how valuation is done using different methods with a real-world case study on actual business performance. It supplements its theoretical content with rich practical case studies that can easily be used in practice.

Who should attend?

The Financial Modeling and Valuation Analyst (FMVA) Certification Course by Rcademy is ideal for the following professionals:

• Asset managers
• Investment managers
• Business owners
• Accountants
• Financial analysts
• Financial advisors

What are the course objectives?

The Financial Modeling and Valuation Analyst (FMVA) Certification Course by Rcademy has the objectives of enabling participants to:

• Generate, select, and evaluate the strategic alternatives and align them to the companies mission, goals, and vision
• Identify the accounting standards commonly encountered by financial analysts and be able to explain the effect they have on financial statements and models
• Make a distinction between the many tiers of a company’s strategy
• Optimize the performance of financial models by using complex equations and calculations
• Evaluate how the company’s competitive advantage will change
• Explain the basic accounting principles that the detailed accounting standards are based on
• Build dynamic, well-structured, and logically designed financial statements and models
• Utilise keyboard shortcuts to save time and be more efficient in using Microsoft Excel
• Perform scenario and sensitivity analysis to enhance the robustness of the financial models
• Make powerful presentations to reach diverse audiences
• Create and implement multi-year forecasts for the income statement, balance sheet, and accurate cash flow
• Identify different valuation techniques and understand their pros and cons
• Analyse the impact of variance analysis on the financial statement and use the results to improve the budgeting process
• Calculate the weighted-average cost of capital and construct a DCF model in Excel

How will this course be presented?

All Rcademy courses were designed, developed, and facilitated using the industry best professionals with vast experience in teaching and their fields. The following methods will be used:

• Lecture notes
• Short videos
• Exercises
• Presentations
• Case studies and examples

What are the topics covered in this course?

Module 1: 3 Statement Model in Finance

• Introduction
  – Types of financial models
• Forecasting revenues down to EBITDA
• Financial modeling best practices
• Complete cash flow statement
• Model setup and assumptions
• Forecast capital structure
• Review and audit
• Case study

Module 2: Forecasting and Budgeting

• Introduction to forecasting and budgeting
• Forecasting techniques
• Applied budgeting tools and techniques in Excel
  – Solver tool
  – pivot tables in Excel
  – Goal seek tool in Excel
• Budgeting within a strategic framework
• A practical guide to developing budgets
• Tracking budget performance with variance analysis
• Barriers to strategy execution
• Interactive exercise
• Building a robust budgeting process
  – Three categories of budgets
  – Retail company example
  – The master budget
  – Top-down vs bottom-up involvement
  – Steps in the budgeting process
  – Manufacturing company example
  – Psychology and target setting

Module 3: Sensitivity and Scenario Analysis in Excel 

• Introduction to Sensitivity and scenario analysis
• Completed model
• Scenario analysis
• Presenting results from sensitivity analysis
• Model integration
• Sensitivity analysis

Module 4: Fundamentals of Financial Analysis 

• Introduction to financial analysis
• Cash flow statement analysis
• Profitability analysis
• Financial ratios
• Balance sheet analysis and ratios
• Case study

Module 5: Pitchbooks and PowerPoint

• PowerPoint tutorial
• Layout overview
• Formatting techniques
• Design methodologies
  – Style
  – Principles
  – Timeline
  – Structure
  – Interactive exercise
• Presenting live
• Setting up functions in PowerPoint
• Example

Module 6: Principles and Standards in Accounting

• Principles in Accounting
  – Introduction
  – Fundamental accounting principles
  – Matching principle
  – Materiality principle
  – Historical cost principle
  – Going concern principle
  – Consistency principle
  – Monetary principle
  – Conservatism principle
  – Objectivity principle
• Accounting for financing fees and transaction costs
• Accounting for income taxes
• The usefulness of financial information
• Accounting for leases
• Accounting for business combinations
• Detailed accounting standards
• Accounting for share-based payments

Module 7: Valuation Modeling in Business 

• Introduction to corporate valuation
  – Art vs science
  – Interactive exercise
• Valuation multiples
• Weighted Average Cost of Capital (WACC)
• Precedent M&A transactions
• Equity value vs enterprise value
• Discounted cash flow (DCF) model
• Comparable company analysis
• Case study
• Comparable company analysis \
• Public information book
• Using comparable company information to assess acquisition opportunities

Module 8: Data Visualisation and Dashboard

• Introduction
• Design principles
• Visuals
• Dashboard
• Focusing attention
• Context

Module 9: Excel Fundamentals

• Introduction
• Excel settings
• Advanced financial analysis setup
• Excel layout
• Functions and formulas
  – IF statements
  – Yearfrac function
  – Min, max, small, and large functions
  – Sum, average, sum-product, and median
  – Date functions and periods
  – Examples