Build a Robust Stock Valuation System - Financial Modeling

Learn how to value any stock using Multiples. Apply rigorous finance fundamentals to build a system designed to last.

4.50 (175 reviews)
Udemy
platform
English
language
Investing & Trading
category
1,379
students
4.5 hours
content
Mar 2024
last update
$69.99
regular price

What you will learn

Discover how to value stocks using Multiples Based Valuation techniques using real world data obtained for free from credible sources.

Design and build your own stock valuation system from scratch, and replicate the system on any stock, anywhere, anytime.

Learn how to 'match' firms on industry, subindustry, size, liquidity, profitability, competitive advantage, and cashflow management.

Gain a comprehensive, hands on understanding of how to extract, compile, and compare financial statements using powerful functions on Excel / Google Sheets.

Explore the benefits and limitations of each Multiple, including the P/e, P/s, MTB, and P/OCF. Even if you don't know anything about any of them.

Understand what each Multiple means and why it works the way it does, including its underlying assumptions.

Create your own Multiples from scratch to give yourself a genuine competitive advantage.

Description

Make better investment decisions by becoming a master at one of the most versatile and core finance fundamentals concepts - Stock Valuation, using Multiples.

Design and build your own robust valuation system from scratch, using financial modeling techniques that are rigorously grounded in the academic and practitioner literature. Then replicate your system on any stock going forward, anytime, anywhere.

Learn how to extract, compile, and compare real financial statements while pushing the boundaries on what’s possible with financial modeling on Excel® and Google Sheets.

Explore why even credible sources can give you different information about the same thing. And what you can do to make sure you have the ‘right’ estimates for your stock valuation, so you can make robust investment decisions backed by solid finance fundamentals.

Discover how to find the most appropriate "comparable" firm by learning how to ‘match’ firms on size, profitability, competitive advantage, cashflow management, and more. This is the "make or break" factor in financial modeling of stock valuation using Multiples.

Don’t just use Multiples that are out there – learn how to create your own. From scratch.

There’s no prior knowledge required. We’ll start you from the very basics, and build you to a PRO at Stock Valuation using Multiples thanks to:

5 SECTIONS TO MASTERY (plus, all future updates included).

Introduction & The Fundamentals

  • Explore what valuation is (and what it isn’t).

  • Understand Multiples Valuation and what its single core underlying assumption is (this assumption also underlies most if not all finance fundamentals).

  • Build your Accounting Fundamentals – you’ll need it for when you work with real world financial statements, extensively applying financial modeling techniques in hands on walkthroughs that follow.

Identifying Our Target and Pool of Comparable Firms

  • Choose any company you want. Or work with us on our randomly chosen S&P500 firm (which eliminates any bias from us).

  • Start the financial modeling by explore how to identify a pool of comparable firms for your target firm.

  • See where - and how - to download financial statements from credible sources including the SEC, for free.

  • Learn how to compile financial statements from scratch and make them easily comparable and replicable financial modeling activities.

Identifying a core comparable firm

  • Remove the subjectivity and guesswork from choosing a great comparable correctly. Apply robust finance fundamentals and financial modeling techniques to your stock valuation methodology, consistently.

  • Match firms on industry, subindustry, size, liquidity, profitability, competitive advantage, and cashflow management.

  • See precisely why a firm makes a great comparable.

  • This aspect of financial modeling really is the "make or break factor" for any investment valuation done via Multiples.

Explore core Stock Valuation Multiples

  • Master the core valuation Multiples most commonly used for stock valuation.

  • Understand what the P/e, P/s, MTB, and P/OCF Multiples are, and what their underlying assumptions are (even if you don't know anything about any of them).

  • Gain a solid understanding of how each Multiple works - and why it works the way it does.

  • Discover what it takes to create your own stock valuation Multiples. From scratch. Done right, this would mean your financial modeling approach is truly unique.

Value stocks using Multiples

  • Apply the key valuation Multiples to value the target firm using all the core finance fundamentals and financial modeling techniques you've built up from scratch.

  • See first hand what constitutes a 'reasonable' estimate, and what doesn't.

  • Explore Multiples that you can obtain from third party sources - with the caveats you want to bear in mind.

  • Learn whether and when you should buy vs sell your target stock.


DESIGNED FOR DISTINCTION

We've used the same tried and tested, proven to work teaching techniques that've helped our clients ace their exams and become chartered certified accountants, get hired by the most renowned investment banks in the world, and indeed, apply rock solid financial modeling techniques to value their own stocks. We're proud of our students - whose finance fundamentals are second to none.

Here's how we'll help you master stock valuation and turn you into a PRO at financial modeling:

A Solid Foundation

You’ll gain a solid foundation of the core finance fundamentals that drive the entire stock valuation process. These fundamentals are the essence of getting a good valuation estimate, for any firm - anywhere in the world.

Complete Walkthroughs

We start from a blank spreadsheet. And build it up to a rigorous, robust, and reusable template that you can adopt and modify for your own financial modeling and valuations. You'll never feel overwhelmed, because you'll know each spreadsheet inside out.

Loads of Practice Questions

Apply what you learn immediately with 100+ practice questions, all with impeccably detailed solutions. Your finance fundamentals and financial modeling skills will be stronger than ever, seriously.

Cheat Sheets & Resources

One page cheat sheets and workable Excel® & Google Sheet spreadsheets – all included.


Push the boundaries. Take your Excel® and Google Sheets skills to the next level.

Together, we'll push the boundaries on what's possible with Excel® and Google Sheets.

You'll work with some of the most advanced and complex functions Excel® and Google Sheets have to offer. And this will help you work faster, while reducing the likelihood of errors.

Perhaps most importantly - it will help you future proof and automate your successive stock valuation and financial modeling exercises. Allowing you to identify potentially lucrative investment opportunities faster, with confidence that your methodologies are backed by rock solid finance fundamentals.


Say goodbye to information overload.

Engage with carefully thought out, clutter-free, and engaging study materials that focus on the 20% finance fundamentals that drive 80% of the great financial modeling results.

Easily follow through complex stock valuation concepts with great visuals that don’t overdo it.

Explore byte-sized lectures that don’t cut corners – so you receive the right amount of information which will hold you in good stead wherever you go, whatever you move on to do.


Watch your confidence grow.

Apply what you learn immediately in example question walkthroughs and progressively challenging quizzes with impeccably detailed solutions.

Engage with over 100 questions ranging from simple true and false ones to more complex problems that take you outside your comfort zone.

Questions are relevant for Ivy League / Russell Group University students studying any core Finance Fundamentals / Financial Analysis course, as well as professionals studying for the ICAEW CFAB, ACA, ACCA, and CFA qualifications.

All questions designed in-house, by Russell Group Distinction Tutors.

To top it all, you can work with us in conducting your own stock valuation - thanks to our hands on walkthroughs, where we show you exactly what to do and how to conduct great financial modeling... One step at a time. One cell at a time. One spreadsheet at a time.

Gaining a solid command over core finance fundamentals has never been easier.


Explore what to do when things don't go according to plan.

We've intentionally included 'hiccups' and troubleshooting in the videos, so you gain a genuine and authentic view of the kind of issues you'll encounter when conducting your own stock valuation exercises.


______________________________________________________________________________________________________________________

We're proud of our students, and inspired by these stories - we decided to share them (unedited) with you...

"I have had a great experience with Fervent tutor as I was taught more of the content and less memorizing. I think their timings and their work is professional as the tutor seeks the most efficient and productive way to help the student. I studied accounting with the tutor and it contributed greatly to my knowledge for the exam."

- Abdulaziz, BA (Hons), International Management


"Fervent goes above and beyond the call of duty. First, they help you get the basics right and then assist you until you get a firm grip of your module. Fervent provides an extremely professional and patient environment. Doesn’t matter how many questions you have or silly you think they are, they encourage all of it. I never would have passed my module rather score a merit in it if it wouldn’t have been for Fervent."

- Shambhavi, MSc, Accounting and Finance


Fervent provides an exceptional service, the whole process from start to finish was very hands on and supportive – during my final year I needed tuition for a governance paper, essentially I was hoping they would do all the work for me but in the long run I got so much more than I bargained for ….they changed my entire thought process and maintained a complete professional reserve. Working with me every step of the way, I was encouraged to think critically in achieving my objective and inspired to dig deep. As a result I produced a 2000 word essay (which I had them proof read as well) worthy of a distinction. Thank you for all the help and most importantly thank you for believing in me.

- Sean, MSc, Accounting and Finance


Throughout the period of doing my Master’s dissertation, I felt agonised from not only researching my specific topic but also writing clearly with no any grammatical errors. Fortunately, I found Fervent which offers efficient and comprehensive services. At first, I just expected my dissertation to be improved in terms of grammar; however, Fervent provided me much more than that. All essential aspects such as formatting, structure, logic, consistency of analysis and critique, strength of arguments are also checked and corrected. One thing that I’ve been very grateful is related to my topic details. In addition to pointing out some big mistakes and recommending more accurate and professional alternative solutions, Fervent gave me many more interesting and valuable ideas which helped to develop my content to have stronger arguments and more critical analysis. My tutor’s suggestions helped me become more analytical in my thought process and in producing a better research paper; my critical thinking skills also saw a considerable improvement. Without Fervent’ support, I don’t believe I could have been awarded an excellent grade for this dissertation. Thank you so much for invaluable help over my hard time.

- Duang MSc, Financial Analysis and Fund Management (with CFA®)


Undoubtedly the gains that I have acquired from the studying with Fervent are plentiful and significantly make me different from what I used to be in terms of my expanded knowledge base, improved English skills (e.g. English-writing), as well as being more confident communicating with English speakers and with the improved ability to think differently and critically for dealing with various types of course works in my study in the university more readily.

My tutor is specialized not only in the teaching of Accounting and Finance but also very familiar with the relevant knowledge in the subjects such as Marketing and Management. This is why I trust this person at an initial point along with his kind, friendly and very patient characteristics (e.g. I’m always encouraged by my tutor during the session with him, often to hear: if you really want it and then you can do it and will make it with no doubts).

“Skilled worker ushers in the gate, leads a pious life depending on individual.” This is a Chinese old saying which I can still remember vividly because it was what my tutor had told me in my  with him and made me believe an excellent learning outcome and a constructive learning process requires the hardworking from both of us. The record shows we did it. This is another reason I like Fervent as in the session with my tutor you see his hardworking as for the preparation for each session and in making the sessions distinctive from cliché-ridden teaching-and-listening classes by exploring the best way and the most suitable set of teaching methods to provide the student with the best value for money.

Jiajian BA (Hons), Business and Management



Content

Before You Start...

Welcome to the Course. Here's What You're Going To Master.
Disclaimer
Course FAQs
Course pointers

Introduction & The Fundamentals

Introduction to Valuation
Introduction to Valuation [Quiz]
Introduction to Multiples Based Valuation
Introduction to Multiples Based Valuation [Quiz]
What is Shorting?
What is Shorting? [Quiz]
Accounting Fundamentals I - The Core Concept
Accounting Fundamentals I - The Core Concept [Quiz]
Accounting Fundamentals II - Exploring Financial Statements
Accounting Fundamentals II - Exploring Financial Statements [Quiz]

Identifying Our Target and Pool of Comparable Firms

Identifying our target firm
Identifying a Pool of Comparable Firms
Extracting Financial Statements of Comparable Firms
Compiling Financial Statements to Make Them Easily Comparable
Exploring the Compiled Financial Statements (and conducting some final cleaning)

Identifying our Core Comparable Firm

Matching firms on Size and Liquidity
Matching firms on Profitability, Competitive Advantage, and Cashflow Management
Identifying our core comparable firm

Exploring Key Valuation Multiples

Price-to-Earnings (P/e)
Price-to-Earnings (P/e) [Quiz]
Price-to-Sales (P/s)
Price-to-Sales (P/s) [Quiz]
Market-to-Book (MTB)
Market-to-Book (MTB) [Quiz]
Price-to-OperatingCashflow (P/OCF)
Price-to-OperatingCashflow (P/OCF) [Quiz]
Creating Your Own Multiples
Creating Your Own Multiples [Quiz]

Valuing Stocks Using Multiples

Valuing our target firm using source data
Valuing our target firm using source data (and designing our own Multiple)
Valuing our target firm using third party Multiples
Valuing our target firm using the pool of comparables
Comparing our estimates with the market price

BONUS: Continue Your Journey On Mastering Finance

Interesting Questions Asked (IQAs)
What would you like to learn next?
BONUS: Continue Your Journey On Mastering Finance

Screenshots

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Reviews

Hadwan
August 12, 2023
Hi, as you know the valuation have many ways to calculate, I thought you will explain many ways and methods for valuation not only one and spend more than 50% of course time just to prepare the data and clean it, what the benefits I will get from this part? simply it is zero benefits. I believe that we should focus on the course main subject and add at least two ways to compare between them, also have to work on historical data and check what happen after that, means I will work on data of 2015-2016 and what the result of my valuation on 2017. sorry if I disturb you, but this is only my opinion, I was looking something bigger than what I found. Hi, I appreciate your interest to clarify, but data cleaning is part of valuation, it take the biggest part of course, if we said it is required skills, so we should make another course call it "data cleaning" ..etc, the course should be to those people who already have this skill. And for historical data, it is too important to present the results of our valuation, I mean: let us say we will valuate AAPL company based on financial information on 207 then explore what happen in 2018 , and do the same with many companies. Thanks for your patience. Appreciate your inputs in this regard, no doubt I respect your opinion, and by the way I am checking now your other courses but this time I will read course detail
Kai
February 24, 2023
It's still worth going through this course, however I find the course too simplified. I'm not saying the content isn't valid, but it feels "insufficient to let me do real financial decisions based on the valuation model of this course." In the end, maybe stock price valuation is just like this, you'll just get several price valuations that widely varies, but honestly there are many, many ways aside from the comparable method which is the only focus in this course. I feel like for the same amount of course length, maybe "income capitalization method" can be added?
Kyle
January 18, 2023
My verdict: Anything but robust. while presentation is good, this course is a very narrow and incomplete picture on how stocks should be valued.
Santo
January 17, 2022
Not useful at all...lots of spreadsheet manipulation that may not at all be connected to reality. The why a company is projected to do well is missing. i.e. what is the competitive advantage of firm A to firm B. Simple multiple comparisons is not believable at all. A waste of time very boring course.
Chukwuka
December 13, 2021
I was able to follow through with the examples and concepts, and I have "officially" valued my first stock! I look forward to fervently (☺) applying this knowledge in the coming days! Thank you, Fervent.
Nobin
October 5, 2021
I am a Chartered Accountant and yet, in my 36 years of career, opportunities to value stocks were scarce. So, this course filled this gap and more important, made me understand. And, last but not the least, using advanced functions of Excel to wok things out quickly was truly icing on the cake. The instructor communicates in an easy to understand manner which is not a mean task considering the complex topic he had to teach us. I have earlier on purchased and learnt 3 courses of the same instructor. So thank you, Fervent and and thank you, Vash, my Guru.
Dwight
July 18, 2021
Very knowledgeable presenter. That is a lot of work to compare one stock, but this information is valuable in learning the process.
Trenton
March 29, 2021
Complex but at the same time I understand. I'm not very smart only High School diploma, the finance equations are hard to understand for me.
Hans-Peter
March 23, 2021
Yes, it's good. For someone like me, who is quite new to financial language, it would be better, if all the terms that are used in the statements, especially the occurance of synonyms, splitted, irrelevant or missing entries and how to handle them were explained in more detail - maybe in one or two extra-videos. The explanations of calculation and usage of the multiples was great!
Aliasgar
March 14, 2021
I was looking for an easy to understand introduction to stock valuation and I got it. The course gives an excellent overview on the due diligence process needed when looking at a stocks fundamental metrics and the explanation of some of the core ratios used in stock valuation and how they apply to price was great! One thing I would like to see in future updates is an inclusion of analyst forecasts to show how these could impact future price performance.
Kyle
January 20, 2021
I like the style of the course. It provides really useful knowledge while avoiding grandiose, black and white claims. I liked that it set you up with a few tools for the tool kit but also the knowledge on how to make your own tools, or in this case multiples.
Seth
May 28, 2020
I really like the way he explains things, even if some of it is a little basic for me at this stage. I still feel optimistic that it is laying groundwork for valuable stuff that will be explained clearly later. Within Udemy that's all I really ask for early on. I tend to refund the courses that aren't clearly delivered. So far so good.
Raj
March 9, 2020
Hi Team, I had been following stock markets from past 15 years with various sort of analyses for forecasting(an unsuccessful I must admit). I had been a keen Technical Analyst(Pursuing CMT level 2) after dismissing Fundamental Analysis as something very abstract,complex and unnecessarily dense. But after looking at this course I found a way to actively add a new dimension to my studies. In the short while I have been able to find out importance of many valuation techniques which help me understand the price movement thanks to this course. Thank you team for designing this wonderful course. Regards Raj Sheth
James
June 25, 2019
I have completed the course and feel like I have a new perspective on how to value stocks. The course is fantastic and you'll learn much on the process. You have to be willing to do the work, however. It's not a passive course. Even if you decide to go through the entire course first, make sure you go back and do all the exercises.
Ivana
June 19, 2019
Another great course by Fervent! They really are great at "making complex topics simple" as they say at the beginning of the course when stating what their "mission" is. The explanations are easy to understand and follow. The instructor takes a step-by-step approach which you can easily follow. There are also many to-the-point quizzes which test your comprehension of issues which are necessary to grasp before moving on to the next lecture. I had previous finance knowledge, but I also strongly recommend this course to those with no finance knowledge (e.g. if they are simply interested in investing), because they will be able to understand all the concepts.

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2145578
udemy ID
1/11/2019
course created date
11/23/2019
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