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Unique Aspects of Corporate Models on Website
In teaching corporate valuation modeling for many years, I have developed flexible structures for models that address the crucial issues in these models. Specifically, models on the website include alternative valuation techniques, easy incorporation of new historic information and development of stable cash flows in alternative terminal periods. I have not come across other models that include these features.

1. The corporate models include detailed tax analysis with net operating loss carry forwards, deferred taxes, asset retirements and other complex accounting issues.
2. The corporate models are structured so with flags and assumption layouts so that added historical statements can be automatically included in the analysis and so that flexible graphs of historical data together with assumptions and graphs that show historical and projected financial ratios can be made.
3. Valuation in the corporate models is developed using unique approaches to compute the terminal value through evaluating stable levels of return on invested capital, stable ratios of capital expenditures to depreciation, stable relationships for deferred taxes and stable working capital amounts. In addition supplemental analysis of theoretical valuation ratios (P/E and EV/EBITDA) are incorporated in the models.
4. The corporate models contain a unique function approach to resolving circular references associated with interest expense and interest income. The function method accounts for net operating tax losses, difference between interest income and interest expense rates and constraints on dividend payout.
Flower Foods Example:
This file has unique methods to resolve circular references and presentation of ROIC and value with sensitivity and scenario analysis.


Bank Example

Lafarge Example:

This file has a unique way to incprorate hisory; to present history together with forecasts; to model revenues; to make DCF and equity valuations with stable ratios; to present financial ratios together with forecast on the summary page and many more items. It also has a lot of flexible scenario and sensitivity items.


Freeport Example:

This example has simpler history and revenue analys, but present a corproate with all of the important issues related to incorporation of history and other factors

The corporate models accept historic data, graphs important ratios for evaluating value and creating assumptions and allow you to quickly make a forecast. With these models you should be able tell a story of the the company history and use the historic data as a basis for the forecast. The two different download options involve different presentations of historic data. The model with the name of long-data allows you to incorporate more years of history into the graphs. The difference between the two models below is the length of history used in presenting the data. Examples of use of the template model are included in the case studies page.

This file has a corporate model as well as a number of different valuation concepts. The files include scenario analysis and tornado diagrams and demonstrate problems with the DCF model

These two files accept historic financial statements and have pages that use the historic data to generate a story about the company and then generate assumptions

These files contain examples of financial models for various different industries. These files a probably more useful than the template models

Video Instructions for Using Corporate Model Template