Valuation Modeling

Valuation is probably the most fundamental concept in finance and is a necessary skill to become a world-class financial analyst. Valuation is the art and science of attributing value to an asset, investment or company. In this course, we will cover the three most common valuation methodologies: comparable company valuation, precedent transaction valuation and discounted cash flow valuation. You will gain a strong foundation in how each method is applied in practice, including the key assumptions, inputs, and limitations associated with each approach. The course will also emphasize how to interpret valuation outputs and reconcile differences across methodologies to form a well-supported valuation conclusion. By the end of the course, you will be equipped with the practical skills to perform valuations in real-world scenarios, supporting investment decisions, financial analysis, and corporate finance activities.

CFI’s Comparable Valuation Fundamentals course provides a practical foundation for valuing companies using comparable trading analysis and precedent transaction analysis - - two of the most widely used methods in finance. Throughout the course, you will learn how to apply these techniques to value a target company, including how to select an appropriate peer group of comparable companies. You will also explore the enterprise value framework and understand which valuation multiples are most relevant for different situations. In addition, the course will guide you through calculating key financial metrics such as last twelve months (LTM) results to assess recent performance. By the end, you will be equipped to perform comparable valuation analysis with confidence and support real-world investment and advisory decisions.

DCF Valuation Modeling Fundamentals Course Overview Discounted Cash Flow analysis is one of the most widely used and respected valuation methods in finance, making it an essential skill for professionals in investing, corporate finance, and business strategy. Understanding not just what a DCF model is, but how and why it works, is critical for forming a sound view of a company’s value. In this course, you’ll be guided step by step through the full DCF process. You’ll start with the core principles that underpin DCF valuation, then move on to building a clean, compact model using industry-standard practices. The course concludes by showing how sensitivity analysis can be used to evaluate how changes in assumptions impact valuation results, helping you interpret DCF outputs with confidence.

The three-statement financial model forms the foundation on which almost all other types of models and analyses are built, and creating one is a crucial skill for many finance professionals. In this course, we will build a three-statement model from scratch and then review and audit it to make sure it’s working properly. You will gain a step-by-step understanding of how the income statement, balance sheet, and cash flow statement are linked together within a dynamic financial model. The course will emphasize best practices in structuring models, building assumptions, and ensuring accuracy and consistency across all statements. In addition, you will develop practical skills in forecasting financial performance, identifying key drivers of business results, and troubleshooting model errors. By the end of the course, you will be able to confidently build and audit a fully integrated three-statement model for real-world financial analysis.