Course curriculum

  • 1

    Introduction

    • Disclaimer

    • Course introduction

    • Course preview and objectives

    • Course downloads - all files

  • 2

    Amazon Case Study

    • Case study objectives

    • Share price chart and financial summary

    • Business segments

    • Total addressable market (TAM)

    • Analyst coverage

    • Morningstar AMZN equity research

    • Analyst consensus forecast

    • Steps in the case study

    • Interactive exercise 1

  • 3

    Historical 3-Statement Model

    • AMZN 10-k

    • Five year financial history in Excel

    • Financial statement detail

    • Dates and time periods

    • Income statement analysis

    • Balance sheet analysis

    • Interactive exercise 2

    • Investing and financing analysis

    • Property, plant & equipment (PP&E) schedule

    • Debt and interest schedule

    • Capital lease schedule

    • Completing the supporting schedules

    • Segmented revenue

    • Interactive exercise 3

  • 4

    Forecast 3-Statement Model

    • Market share, margins, and risk

    • 12 steps for building the financial model

    • Market share analysis

    • Consensus case assumptions

    • Discussing the assumptions

    • Income statement forecast (Revenue to EBIT)

    • Current assets (securities, accounts receivable, inventory)

    • Current liabilities (accounts payable, accrued expenses, unearned revenue)

    • Interactive exercise 4

    • Property, plant and equipment forecast

    • Debt and interest forecast

    • Capital lease forecast

    • Finishing the income statement

    • Property & equipment, goodwill, other assets

    • Long-term debt and other liabilities

    • Interactive exercise 5

    • Stockholders' equity forecast

    • Cash from operating activities

    • Cash from investing activities

    • Cash from financing activities

    • Closing cash balance

    • Interactive exercise 6

  • 5

    Discounted Cash Flow (DCF) Model

    • Setting up the valuation section

    • Free cash flow (with/out capital leases)

    • EBITDA (with/out stock-based compensation)

    • Free cash flow to firm (FCFF)

    • Interactive exercise 7

    • DCF assumptions

    • Valuation timeline

    • Transaction FCFF

    • Rolling net present value (NPV)

    • Net debt (cash, securities, debt, capital leases)

    • Rolling share price

    • Equity internal rate of return (IRR)

    • Interactive exercise 8

    • Intrinsic value and IRR sensitivity analysis

    • Scenario analysis setup

    • Bull case, bear case, other case

    • Scenario selector

    • Live case

    • Scenario dashboard

    • S&P Capital IQ WACC template

    • WACC - Bottom-up beta vs Regression beta

    • Interactive exercise 9

  • 6

    Comparable Company Analysis (Comps)

    • Session overview

    • Steps in comps analysis process

    • Using data providers (PitchBook and Capital IQ)

    • PitchBook - companies & deals search

    • PitchBook - exporting financial data

    • Capital IQ - company screening

    • AMZN segments for sum-of-the-parts (SOTP)

    • Enterprise value calculations

    • Growth rates and margins

    • EV/Revenue and EV/EBITDA multiples

    • LTM and 2019E segment revenue

    • Subscription business

    • Sum-of-the-parts target price

    • Interactive exercise 10

    • Growth and margins regression

    • Special situations (normalization)

    • Currency

    • Last twelve months (LTM)

    • Extraordinary items (restructuring, gain/loss, impairment)

    • Minority interest

    • Pro forma

    • Capital structure

    • Stock-based compensation (SBC)

    • Start-ups or unprofitable companies

    • Interactive exercise 11

  • 7

    Dashboard and Recommendations

    • Session overview

    • Dashboard setup

    • Price and market data

    • Key financial summary

    • Valuation data

    • Valuation charts

    • Share price chart

    • Football field chart (valuation summary)

  • 8

    Conclusion

    • Course recap

    • Key takeaways

    • Thank you

  • 9

    Qualified Assessment

    • Qualified assessment

    • Share Your Feedback

    • Course Completion