Hi Guys,
I'll be joining an investment firm as a consulting lateral hire, where I did a lot of macro modeling. However, the new job will require me to quickly pick up on the more practical business valuation models. I've been reviewing techniques but would like to put this into practice by valuing a couple of family businesses.
Can you suggest (perhaps even send) an excel-based model, preferably a set that includes DCF and a few others? Is it worth buying templates on the internet, or should I attempt to build one from scratch? I was looking at the McKinsey model on wileyvaluation.com, but the price ($165) seems a bit steep for a template. If this far and above the best template, I'll plunk down, but I have a feeling their are cheaper, better alternatives out there.
Much Obliged, C
you can PM me
Here's where I would look for free spreadsheets....
http://pages.stern.nyu.edu/~adamodar/New_Home_Page/spreadsh.htm
Damodaran is basically the man when it comes to this sort of thing.... He's a lecturer at Stern NYU.... the other information on his website is also good too...
http://pages.stern.nyu.edu/~adamodar/
Cheers
Damodaran IS the man. Thanks for the tip -- great resource.
No problems.... happy to be of assistance...
For a crash course I would recommend downloading the course notes for the executive education course on valuations... a bit shorter than the full course content wise but it cuts out all the 'nice to know but not used in the real world' stuff...
Also.... I happened to discover today (at my local bookstore) the McKinsey book that supports the spreadsheet you mentioned. I hadn't seen it before and I have to say I'm impressed.... mind you.... it is VERY McKinsey-esque (you're from consulting so you'll know what I mean)... Really depends on what you want - both Damodaran's lecture notes and the McKinsey book cover calculation plus strategy implications, but McKinsey is probably more explicit when it comes to the strategy side of things.
Cheers
I've been using the McKinsey book on valuation as a refresher, which has been a delight to read. I think it offers a very rigorous study (with various proofs and empirical studies) of how/what markets value, and also integrates well with the practical matters of managerial decision-making. It's been a great Consulting-Finance bridge for me.
I appreciate the first few chapters, where they offer proofs on the markets' deference for long-term economic value-creation vs. short-term accounting success. It was a nice reminder, particularly in this age of volatility. Let's hope logic collects the herd soon.
And for what it's worth, there are other lecturers who put up useful spreadsheets for their students.... From memory there is a Kellogg course that has a decent course website with documents/spreadsheets and the like.
Enjoy...
Valuation/Excel Files (Originally Posted: 02/08/2013)
Hi Guys,
I am interested in learning about how the Balance Sheet/Cash Flow/Income Statements all connect. Are there any analysts on this forum that know where I can find an excel file in which the formula's are linked up from each of the statements into one-another?? It would be a really nice educational tool for newbies such as myself. I would really appreciate it!!
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