Investment Banking: Financial Analysis and Valuation

Go to Course: https://www.coursera.org/learn/investment-banking-financial-analysis-valuation

Introduction

**Course Review: Investment Banking: Financial Analysis and Valuation** As the world of finance continues to evolve, the demand for well-trained professionals in investment banking and corporate finance remains high. If you are looking to break into this field or enhance your financial analysis and valuation skills, the Coursera course titled "Investment Banking: Financial Analysis and Valuation" is an excellent choice. Here’s a detailed overview, review, and recommendation. **Course Overview** This course offers students a comprehensive foundation in the critical elements necessary for a successful career in investment banking. With a practical emphasis on financial statement analysis and valuation techniques, it equips learners with the skills needed to navigate the complexities of financial markets and corporate structures. **Syllabus Breakdown** The course is divided into two major parts, encompassing various modules that build on each other to provide a holistic understanding of financial analysis and valuation. 1. **Module 1: Financial Spreads & Adjustments** The course kicks off with an exploration of the comparability of financial information. Understanding how to standardize financial data through the development of a financial spread template is crucial for accurate valuation. This module delves into the calculation of fully diluted shares and how to adjust financial statements to account for anomalies like non-recurring items. This foundational knowledge prepares students for more advanced concepts later in the course. 2. **Module 2: Valuation Analysis and Comparable Public Companies Analysis** Here, the course introduces foundational valuation techniques that are vital for understanding what drives a company's stock price. Topics such as multiples-based and cash flow-based valuation methods are discussed using current finance theory and practical examples. This module is essential for anyone looking to grasp how investment banks assess the value of companies involved in mergers and acquisitions (M&A). 3. **Module 3: Comparable Precedent Transaction Analysis** Diving deeper, this module focuses on evaluating comparable M&A transactions, helping students understand how past transactions inform current valuations. By comparing public companies with precedent transactions, learners gain insights into transaction valuation statistics and how they can paint a clearer picture of a company’s expected value during M&A activity. 4. **Module 4: Discounted Cash Flows** The final module presents an essential tool for financial analysis: discounted cash flow (DCF) analysis. Students will learn to construct a DCF model, mastering concepts such as financial forecasting and free cash flow, which are pivotal in determining a company's intrinsic value. This practical application is invaluable for those aspiring to work in investment banking. **Conclusion and Certification** At the end of the course, students will be guided on how to obtain the course certificate, a beneficial addition to any resume, showcasing your newly acquired skills in investment banking and valuation. **Review and Recommendation** This course stands out for its practical approach and detailed analysis techniques. It systematically builds from foundational concepts to more advanced valuation methods, making it suitable for both novices and those with some background in finance. The combination of theoretical frameworks and real-world applications ensures that learners can confidently apply their knowledge in the workplace. What I particularly appreciate is the accessibility of the material—video lectures, readings, and practical assignments engage different learning styles, maximizing retention of complex concepts. The real-world examples provided throughout the course further solidify the learning experience. I highly recommend Coursera's "Investment Banking: Financial Analysis and Valuation" course for anyone eager to establish or advance their career in finance, particularly in investment banking and related fields. The skills learned in this course are not only relevant for investment banking but are indispensable for various roles in finance, equity research, and corporate development. Invest in your future today by enrolling in this course!

Syllabus

Course Introduction and Module 1: Financial Spreads & Adjustments

In this module you will explore the concept of comparability of company financial information, a key building block of valuation. The primary application of that concept is the development of the financial spread template, which is used to standardize the presentation of company financial and market information within accounting periods and across companies. Also addressed in this module is the calculation of fully diluted shares and adjusting financial statements to consider the impact of one-time, non-recurring and unusual items.

What determines a company's stock price? Placing a value on companies is a key tool for M&A analysis. This module will present the main techniques available to estimate a company's value, including multiples-based and cash flow-based valuation methods. These valuation tools will be presented using the most up-to-date Finance theory, and real-world examples.

Valuation analysis is a major part of the work that investment banks do when advising companies involved in M&A deals. This module will dive deeper into using comparable precedent M&A transactions to establish another perspective on a company’s expected valuation in an M&A context. The similarities and differences between comparable public companies analysis and transactions comparables analysis will be presented, as well as how to correctly calculate transaction valuation statistics. Lastly, we will take what we have learned about public company and transaction comparables to begin to develop a valuation summary for an existing public company.

This module will present how to build a discounted cash flow analysis, a fundamental valuation technique, as well as the concepts of financial forecasting, free cash flow, weighted average cost of capital, terminal value and present value.

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