Financial Modeling and Valuation - Paul Pignataro

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Auteur(s) : Paul Pignataro

Editeur : Wiley

Langue : Anglais

Parution : 01/03/2022

Format : Moyen, de 350g à 1kg

Nombre de pages : 432

Expédition : 646

Dimensions : 23.2 x 16.4 x 3.7

ISBN : 9781119808893

Résumé :

The fully revised new edition of the best-selling guide to using financial models to determine if a stock is over or undervalued

Written by the founder and CEO of the world-renowned New York School of Finance, Financial Modeling and Valuation provides clear and systematic guidance on accurately evaluating the soundness of a stock investment. This invaluable handbook equips investors with the tools necessary for understanding the underlying fundamentals of a rational investment and for making smarter investment decisions in any market environment.

Built around an in-depth case study of global retail leader Amazon, this fully updated Second Edition shows you how to analyze the financial standing of a company using the methods of Wall Street professionals. Step-by-step, you will learn to build the core three statements-income statement, cash flow statement, and balance sheet-as well as the three major supporting schedules required for complete company valuation and analysis. All line items are explained in clear language and include real-world tips and techniques for using them as tools for valuing and managing a business. This must-have guide:

• Features new and in-depth case studies based on Amazon that simulate real-world modelling and valuation
• Explains valuation techniques such as illustrative comparable company analysis, precedent transactions analysis, and discounted cash flow analysis
• Covers all essential applications of a model, including pricing a stock, raising debt, and raising equity
• Includes an introductory section describing the recent and dramatic shift of the entire retail industry
• Provides end-of-chapter questions, downloadable practice models, additional case studies, and common interview questions via a companion website

Financial Modeling and Valuation: A Practical Guide to Investment Banking and Private Equity, Second Edition is essential reading for finance professionals, venture capitalists, individual investors, and students in investment banking and related degree programs in finance.

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Biographie:

PAUL PIGNATARO is Founder of the New York School of Finance, a world leader in providing finance education to banks, firms, and universities throughout the world. He is also Managing Partner of Caterson Consulting, a consulting firm providing merger, acquisition, and private equity services. He is the author of the Investment Banking and Private Equity in Practice series of books. Previously, Paul worked at TH Lee Putnam Ventures, a $1 billion private equity firm affiliated with buyout giant Thomas H. Lee Partners, and at Morgan Stanley, where he worked on various transactions in the technology, energy, transportation, and business services industries.

Sommaire:

Preface xv

The Amazon Case Study xvi

How This Book Is Structured xvii

Part One

Financial Statements and Projections 1

Chapter 1

The Income Statement 3

Revenue 4

Cost of Goods Sold 4

Gross Profit 4

Operating Expenses 5

Other Income 6

EBITDA 6

Depreciation and Amortization 8

EBIT 8

Interest 9

EBT 9

Taxes 9

Net Income 10

Non-Recurring and Extraordinary Items 10

Distributions 11

Net Income (as Reported) 11

Shares 11

Earnings per Share (EPS) 12

Amazon's Income Statement 12

Revenue 14

Getting to EBITDA 20

Digging up Depreciation 20

Cost of Goods Sold 23

Gross Profit 23

Fulfillment 25

Technology and Content 25

Marketing, General and Administrative,

Other Operating Expense (Income), Net 27

Total Operating Expenses 27

EBITDA 27

Beyond EBITDA 28

Depreciation and Amortization 28

EBIT 29

Other Income 30

Interest 31

EBT 31

Taxes 31

Net Income from Continuing Operations 32

Non-Recurring and Extraordinary Items 32

Net Income (after Non-Recurring Events) 33

Distributions 33

Net Income (as Reported) 33

Shares and EPS 34

Income Statement - Making Projections 35

Revenue 35

Cost of Goods Sold 40

Operating Expenses 45

Depreciation and Amortization 46

Other Income 49

Seven Methods of Projections 49

Interest Income 53

Taxes 53

Non-Recurring Events 55

Distributions 55

Equity Method Investment Activity 55

Dividends 57

Shares 57

Basic Shares Outstanding 57

Diluted Shares Outstanding and the Treasury Method 57

Earnings per Share 60

Chapter 2

The Cash Flow Statement 67

Cash from Operating Activities 67

Revenue 69

Cost of Goods Sold 69

Operating Expenses 69

Depreciation 69

Interest 69

Taxes 70

Cash from Investing Activities 71

Cash from Financing Activities 71

Financial Statement Flows Example 72

Amazon's Cash Flow Statement 78

Cash from Operating Activities 78

Cash from Investing Activities 81

Cash from Financing Activities 82

Cash Flow Statement - Making Projections 84

Cash from Operating Activities 85

Depreciation and Amortization 85

Stock-Based Compensation 85

Other Operating Expense 88

Other Expense (Income) 90

Deferred Taxes 91

Changes in Operating Working Capital 91

Cash from Investing Activities 92

Proceeds from Property and Equipment Sales and Incentives 98

Items Based on Cash Available 98

Cash Flow from Financing Activities 101

Effect of Exchange Rate on Cash 101

Chapter 3

The Balance Sheet 107

Assets 107

Current Assets 107

Cash and Cash Equivalents 107

Accounts Receivable 107

Inventory 108

Prepaid Expense 109

Non-Current Assets 110

Property, Plant, and Equipment (PP&E) 110

Intangible Assets 110

Liabilities 110

Current Liabilities 110

Accounts Payable 110

Accrued Liabilities 111

Short-Term Debts 111

Non-Current Liabilities 111

Long-Term Debts 111

Deferred Taxes 111

Amazon's Balance Sheet 112

Current Assets 113

Non-Current Assets 113

Operating Leases 114

Goodwill 114

Other Assets 114

Current Liabilities 114

Short-Term Debt 115

Non-Current Liabilities 115

Other Long-Ter...