Master Financial Statement Analysis, Financial Projections (Revenues, BS, Cash flow, Order) and Equity Value Projections
What you'll learn:
Understand the valuation technique like forward P/E to project the equity value per share
Understand the valuation process of any company from Economy, Industry to Company (EIC framework)
Description
In this course, we will first understand about the company’s different business lines. Post which we will understand different factors, which can affect the revenue of the company in the long run. As Praj is involved into the ethanol segment so we will understand how ethanol is made and then we will project the demand of petrol. This will help us to project the demand of ethanol and expected order flows into the country. Once we will understand the ethanol projections, we will start creating assumption sheet, wherein we will project order flows for ethanol, brewery and emerging segment for the company over the period of next 2 years. Further, we will project revenues for each segment based on book to bill and execution ratio of the company. Thereafter, we will start projecting the operating margins through top down approach and will go through the conference transcript of the company to understand the expectation of management for OPM over the period of next 2 years. We will also create Asset schedule and debt schedule to project depreciation and interest cost. Once we will complete the projection of depreciation and interest cost, we will finally project other income. Other income will be calculated based on Cash yield. Post completing the projection of income statement, we will project working capital and complete the projection for balance sheet and thereby cash flow statement. At last, we will project the target value of the stock through forward P/E, for which we will understand how to create 1 year and 2 year forward P/E chart.We have used company’s result press releases and investor presentation to find out relevant data, hence this can assure the reliability of any past data and future projections.
Who this course is for
Students who are pursuing CFA, MBA (finance), CA
Professionals in the field of investment banking/equity research
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