Financial Modeling and Valuation: A Practical Guid e to Investment Banking and Private Equity, Second Edition: 2nd Edition

The markets are vast and complex not only in the U.S. but globally. Everyone wants to make money. Yet, throughout the past years we have faced tremendous market swings rendering investors (and their money) in a sea of lost hopes, and few investors with a plethora of wealth. Many of these market anomalies and swings are dependent, and in a sense dictated, by the investor -- you. The investor sets the current stock price. The reaction of the investor determines the success of an IPO, an equity offering. Yes, the collective psychology of the market as a whole plays a major role, but if the everyday investor was better equipped with the proper tools to understand the underlying fundamentals of a rational investment, smarter investment decisions would be made, more rational investments will be made, and the markets would be a more efficient environment. This book sets to give any investor the fundamental tools to help determine if a stock investment is a rational one. The new edition of "Financial Modeling and Valuation" will be updated for 2020 and will be based on the new retail leader Amazon as opposed to Wal-Mart. A great introductory "thesis" to best transition from the old version to the new version will be based on the shift of the entire retail industry. There's a connection from old "mom and pop" produce companies of the early 1800s to the Great Atlantic and Pacific Company (A&P) to Wal-Mart, and now to Amazon in the progression of a "Retail Wheel". This is a great segway into the new book and can end with a though piece on where we will go next. Of course the focus of the book is technical but a couple of pages as an intro can give great context to the book. This book will give you the ability to build a financial model soup to nuts. You will not only build the core three statements - income statement, cash flow statement, balance sheet - but the three major supporting schedule necessary for full company valuation and analysis. A core explanation of each line item is included in addition to tips and techniques to use each line item as a tool to value and manage a business. Finally, applications are learned to fully understand a model's use including pricing a stock, raising debt, and raising equity.
The fully revised new edition of the best-selling guide to using financial models to determine if a stock is over or undervalued Written by the founder and CEO of the world-renowned New York School of Finance, Financial Modeling and Valuation provides clear and systematic guidance on accurately evaluating the soundness of a stock investment. This invaluable handbook equips investors with the tools necessary for understanding the underlying fundamentals of a rational investment and for making smarter investment decisions in any market environment. Built around an in-depth case study of global retail leader Amazon, this fully updated Second Edition shows you how to analyze the financial standing of a company using the methods of Wall Street professionals. Step-by-step, you will learn to build the core three statements—income statement, cash flow statement, and balance sheet—as well as the three major supporting schedules required for complete company valuation and analysis. All line items are explained in clear language and include real-world tips and techniques for using them as tools for valuing and managing a business. This must-have guide: Features new and in-depth case studies based on Amazon that simulate real-world modelling and valuation Explains valuation techniques such as illustrative comparable company analysis, precedent transactions analysis, and discounted cash flow analysis Covers all essential applications of a model, including pricing a stock, raising debt, and raising equity Includes an introductory section describing the recent and dramatic shift of the entire retail industry Provides end-of-chapter questions, downloadable practice models, additional case studies, and common interview questions via a companion website Financial Modeling and Valuation: A Practical Guide to Investment Banking and Private Equity, Second Edition is essential reading for finance professionals, venture capitalists, individual investors, and students in investment banking and related degree programs in finance.