This comprehensive guide, updated for the 2nd edition, equips readers with practical skills in financial modeling and valuation, used by professionals in various fields including investment banking and private equity. Author Paul Pignataro offers a step-by-step approach, building from fundamental concepts to complex valuation techniques.

Key strengths:

• Clear and accessible: Written in a user-friendly style, suitable for both beginners and experienced individuals.
• Comprehensive coverage: Covers essential aspects like financial statements, valuation methods (discounted cash flow, comparable company, precedent transactions), and practical applications.
• Real-world focus: Provides detailed instructions and practical tips for building financial models using Excel.
• Case studies and examples: Illustrates key concepts with real-world scenarios and examples from leading companies.

Content overview:

• Introduction: Establishes the basics of financial modeling and valuation, outlining different approaches and applications.
• Building the Financial Model: Provides a step-by-step guide to constructing a model, including forecasting revenue, expenses, and cash flows.
• Valuation Techniques: Explores various methods like discounted cash flow analysis, comparable company analysis, and precedent transactions analysis.
• Applications: Discusses practical uses in different contexts like mergers and acquisitions, capital raising, and investment decisions.
• Case Study: Presents a comprehensive case study analyzing a leading company (Amazon in the 2nd edition), demonstrating the entire valuation process.

New in the 2nd Edition:

• Updated content reflecting current practices and techniques.
• Expanded coverage on topics like private equity valuation and emerging market modeling.
• New case studies and examples.