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Regular version of the site
Master 2019/2020

Building DCF Models in Practice

Type: Elective course (Financial Analyst)
Area of studies: Finance and Credit
Delivered by: HSE Banking Institute
When: 2 year, 2 module
Mode of studies: Blended
Master’s programme: Financial Analyst
Language: English
ECTS credits: 3

Course Syllabus

Abstract

This is a practical course. Students will have a practical experience in building a fully developed financial model from scratch. We will study best practice for presenting project budgets, calculating ratios and performance indicators, doing risk analysis. The course will develop financial modelling skills used in the business valuation course, but in contrast, in this course we will focus on business factors and drivers fueling success of a project, and will spend more time on their best account and presentation than on the theory of financial analysis.
Learning Objectives

Learning Objectives

  • The goal of the course is to provide practical skills in financial modelling of investment projects by discussing best practice with the teacher as well as students work on their own projects.
Expected Learning Outcomes

Expected Learning Outcomes

  • After the course, students will have necessary knowledge and skills to build a fully-fledged financial model for a project or a company. The model can be used to support investment decisions, raise capital or apply for debt financing.
Course Contents

Course Contents

  • 1) Basics of financial modelling.
  • 2) Sales, OPEX, CAPEX, working capital, taxes.
  • 3) Financial reports in the model.
  • 4) Financing: loans, lease. Ratios.
  • 5) Discounted cash flow analysis.
  • 6) Scenario analysis.
Assessment Elements

Assessment Elements

  • non-blocking develop a financial model
  • non-blocking build a full-blown scenario analysis section/build a multi-stage cap table
Interim Assessment

Interim Assessment

  • Interim assessment (2 module)
    0.3 * build a full-blown scenario analysis section/build a multi-stage cap table + 0.7 * develop a financial model
Bibliography

Bibliography

Recommended Core Bibliography

  • Damodaran, A. (2015). Applied Corporate Finance (Vol. Fourth edition). Hoboken, New Jersey: Wiley. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=1639191

Recommended Additional Bibliography

  • Barker, R., & Milano, G. (2018). Building a Bridge between Marketing and Finance. Journal of Applied Corporate Finance, 30(2), 29–39. https://doi.org/10.1111/jacf.12297
  • Chacko, G., & Evans, C. (2014). Valuation: Methods and Models in Applied Corporate Finance. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsbas&AN=edsbas.931E9DBB
  • Mark K. Pyles. (2014). Applied Corporate Finance. Springer. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsrep&AN=edsrep.b.spr.sptbec.978.1.4614.9173.6