Delivered at:: HSE Banking Institute

Course type:: Elective course

When:: 2 year, 2 module

Instructor

Ilyin, Alexey

Full Syllabus

Abstract

This is a practical course. Over the course, students will build financial models for capital investment projects ranging from venture companies to project finance. 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 fuelling success of a project, and will spend more time on their best account and presentation than on the theory of financial analysis. The course is interactive. Lectures combine a presentation, discussion of reading for the week (often the homework), viewing of a video and discussion. Students should take notes, both on lectures and on the reading, and presentations, with the intention of addressing the key themes of the course. The readings require intensive examination of a broad variety of issues and modes of thought.

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

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

Basics of financial modelling
Sales, OPEX, CAPEX, working capital, taxes
Financial reports in the model
Financing: loans, lease. Ratios
Discounted cash flow analysis
Scenario analysis

Assessment Elements

build a full-blown scenario analysis section/build a multi-stage cap table
develop a financial model

Interim Assessment

2022/2023 2nd module
0.4 * build a full-blown scenario analysis section/build a multi-stage cap table + 0.6 * develop a financial model

Bibliography

Recommended Core Bibliography

McKinsey & Company Inc, Tim Koller, Marc Goedhart, & David Wessels. (2020). Valuation : Measuring and Managing the Value of Companies, University Edition. Wiley.
Rosenbaum, J., & Pearl, J. (2013). Investment Banking : Valuation, Leveraged Buyouts, and Mergers and Acquisitions (Vol. 2nd ed). Hoboken: Wiley. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=981384

Recommended Additional Bibliography

Nantell, T. J. (1991). Valuation: Measuring and Managing the Value of Companies. Journal of Finance (Wiley-Blackwell), 46(1), 459–463. https://doi.org/10.2307/2328707

Master's Program 'Financial Analyst'

CONTACTS

Building DCF Models in Practice