Minimum qualifications for course participants

• Competency in the use of excel 
• Understanding of the fundamentals of investment analysis including interpretation of financial statements and financial ratios

The course is suitable for analysts who are relatively new to the industry, those converting from other financial disciplines, or analysts who are already producing research but need to develop more rigorous financial modeling.

The course allows participants to progress at their own pace, with a large amount of ‘hands on work,’ and one on one interaction with the course tutors. This flexible structure ensures the course will add value to participants with a broad range of experiences. Advanced excel techniques such as use of macros and database functions are not required. 

Prior to each course, a consultation exercise with the head of research or course sponsor is held to understand the individual client’s requirements, and their preferences and house styles for company models.   

Course structure

The course is conducted over a one or two day period during which time participants will construct a financial model on a chosen company. There are four sessions detailed below.

Participants are requested to undertake some simple pre-course preparation including downloading three years of historical financial statements and researching some background on the company and the industry. This will assist participants to identify the key drivers of the company and provide a basis for forecasting the profitability of the company over the next three years.

The model constructed during the course will have

• a linked and balanced profit and loss account, cash flow and balance sheet
• three years of forecasts based on assumptions for key drivers
• a rigorous format including an output sheet
• ratio calculation and Dupont analysis
• a three stage DCF analysis
• methodologies for calculating valuations and target prices