Football field valuation: build and check a valuation chart
Build a football field valuation chart in Excel with consistent enterprise-value ranges, a market reference, and checked bridges to equity value and value per share.
THE FINX JOURNAL LEARN BY DOING
Financial modeling
Understand how a model fits together, follow its connections and practice finding the mistakes behind the numbers.
In this topic
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LTM vs NTM: compare valuation multiples on consistent periods
Bridge four fictional quarters into LTM EBITDA, build NTM from a dated forecast, and see the exact 6.67% by which a mismatched denominator imports the growth rate twice.
Precedent transaction analysis: select deals and build a valuation range
Build a precedent transaction analysis in Excel from a fictional deal set: rebuild headline prices into enterprise value, screen comparability and derive a checked valuation range.
Revenue forecasting: build a price-and-volume driver model
Build a monthly revenue forecast in Excel from contract and job drivers, reconcile the annual bridge, and test changes in pricing and additions.
Unlevered beta: remove and reapply leverage in a peer analysis
Strip peer leverage with the Hamada formula on a fictional comps set, relever to the target's capital structure, and catch the basis and order errors that distort the result.
Cash conversion cycle: DIO, DSO and DPO in one worked example
Calculate the cash conversion cycle from a year of financials, see why the answer depends on stated conventions, and turn a longer cycle into the extra cash it funds.