Excited for more series to come up. Especially a series on valuation. The way you explain things, it gets imbibed into the head instantly. Thanks a lot for making things easier for us. It is helping me to sit for interviews with confidence.
Hey Parth. I figured out why Intrensic growth values are same for the two companies. While EBIT is taken from HistoricalFS, everything else was linked to 'Raw FS" and that remains the was hard coded. So essentially what is happening is: 1)Invested Capital Value would be same. So the denominator in ROIC would be a fixed value (unless you change the Raw FS), aka, same across different companies. 2)Capex and WC again would be fixed, meaning fixed Reinvestment value. Now, the numerator in Reinvestment Rate would be same across. 3)Now, if you multiply the individual formulas for ROIC and Reinvestment rate together you get a different value, but still it would be wrong from points 1 and 2. I hope this helps Also, why did we take EBIT and NOPAT in ROIC formula?
Thank you sir for the incredible financial modeling tutorials, your clear explanations and practical examples have greatly helped me understand and improved understanding. your hard work and dedication are truly appreciated.
@parth verma Sir I am blessed..I got a mentor like you .. Otherwise I believe I never learn financial modelling in a professional manner even spending a lot of money 🙏🙌❤
sir, You are like Ratan tata for me in the field of Providing education for free of cost. sir, if anyone does not say about your goodness it means they don't deserve such a great teacher like you. But sir, you are Invaluable and it will definitely help those students who are really seeking their carrier in the field of finance. sir just one request, if you can consider please remove watch limit of equity cohort as most of the students like me wants to see more and more to revise my concept. this is the reason because of which i am scaring of taking this course because if i crossed my time limit and still could not learn in a full fledge way than it doesn't mean for me.
Sir, While downloading the Asian paints excel from screener the growth rate was same . This is because the data of invested Cap. is taken from hardcoded data. So just downloading the excel file of a company is not enough to obtain growth rate , we will also have to input data for invested capital every time for each company ...
The videos are very good. It give us complete understanding of the financial modelling. I just want to suggest one thing that you can take only one company data and create this model because right now it is complicated for us to understand. You have calculate beta for avenue supermart but actually we are modelling Tata Motors.
Brother Sir already told that videos are not for someone who wants to be modellor its for the one who wants to be F in. Analyst so shall not focus on its complexity and concentrate on learning
I agree too. It gets really confusing especially around session 12 & 13 when DCF is about to get completed. Because we now have around 3 companies involved: Tata motors, Avenue supermart & Asian Paints. For DCF series, it would have been perfectly fine if we would have continued with Avenue Supermart as we could have easily fetched the HistoricalFS data of Avenue from screener since we had already uploaded the TaMo model on it back in session 5. So we could have got the ready excel of Avenue quite easily. But since for Intrinsic growth session he took Asian paints, it made things very confusing & slightly complicated.
Hi Parth, Thank you for providing this course! I have a few doubts when plotting growth rate for TAMO as per the excerice: 1) EBIT is negative, thus making ROIC negative. 2) Reinvestment rate is also negative, hence when multiplying negative ROIC and negative Reinvestment rate gives positive growth rate! This pertains to Mar 2020 and Mar 2022 data. Kindly advice on how to factor this in for better evaluation. Thanks for your support!
Continuing on to the next video, the DCF model for TAMO returns -204 Equity value per share v/s Current market price per share of 674. Model is all over the place, is this because currently the company is loss making and this model isn't suitable?
Sir you have told the topic required 17 hrs of time Cost of equity Cost of debt WACC Growth rate .... Please take the session on this and upload it. I hope you will full fill my request. Thank you in advance 😊😊😊😊
This video is really informative i have to watch this again and again Humsa toon bachpan sai hein naphrat hui hain vala only few people can really understand 😂
Hi Parth, wanted to know the reason for non inclusion of CWIP and Investment in ROIC calculation Apart form that, we can also use =ABS() instead of using =- to convert -ve amount to positive. And, honestly it is really great experience watching your Modelling sessions.
Shi main assignment taugh dedia na answer chatgpt per mile na google per uska baad bhi data find krna which statement is true although I have submitted assignment hope for the best. That is really great video thanks for that 💖
Thank you sir for such a valuable and informative video. I have a doubt why NOPAT= EBIT (1-tax) is considered for calculating reinvestment rate and for ROIC only EBIT is considered?
Because nopat is calculated to see how company generate profit from its core operation without the use of debt whereas roic is calculate to check how the company uses its total invested capital(debt+equity) to generate profit.
Dear Parth Sir, You mentioned that the topic requires 17 hours of time. The areas to be covered include: Cost of Equity Cost of Debt Weighted Average Cost of Capital (WACC) Growth Rate Could you please conduct a session on these topics and upload it? Thank you.
While calculating Reinvestment rate shouldn't we deduct the Deprecation from the Capex ?Also whether we should include the Capital WIP as part of total Non current assets since we that also investment in Non Current assets
The reason for getting errors in the data of Asian Paint is that we have manually added the Raw Fs sheet which is totally manually created and the data in that sheet is of Tata Motors so if we link the Raw fs data with the data sheet, then this will not be an issue.
Sir, the asian paints growth rate is same to the model you drew beacuse you doesn't change the Raw fs it is similar to the model we upload on screener i change it and the growth rate also changed with it not a conincedence Thankyou so much sir for the playlist i learn alot and also i have a query about neagtive growth rate + negative EBIT why we are considering negative values
Hi! I have a doubt Why we took EBIT (1-t) as our profits available? Because if there is interest expense then after deducting the interest and availing tax benefit for the same we will be left with the actual profits that is available to reinvest? So the formula should be Reinvestment/ PAT for Reinvestment Rate calculation?
Hi Sir, thank you for the amazing series. This might just be the thing to get my foot in the door in the equity world. Just had a quick question. the ROIC formula according to the textbook defination is NOPAT/Invested Capital. Wanted to ask if EBIT and NOPAT are interchangebly used for calculation of ROIC ?
I have one doubt, in the Raw FS sheet we hard coded the data, and then we linked the Intrensic growth rate sheet with it, so after uploading it on screener, how will it change?
@thevaluationschool ,why have we taken ROIC as EBIT/ Invested Capital. It is an after tax measure right? We should take NOPAT instead of EBIT..please enlighten about this
Yes I just cross checked this formula online & it is true. ROIC is supposed to be NOPAT/Invested capital. And NOPAT ideally is Post tax figure while EBIT is Pre tax. This might be a silly question but there's no tax on invested capital, so does that make it a Pre tax figure & hence to match comparability, Parth might have taken EBIT since it is also a Pre tax figure? Ideally capital has no tax but idk. I'm just trying to understand this situation.
At the 32:15 mark in Session 12,acquisitions should be included under Capital Expenditures (CapEx) Acquisitions, like purchasing businesses or significant assets, are a crucial part of CapEx as they involve significant investment in long-term assets. Including this will ensure a complete and accurate view of the company’s financial activities and strategic growth.
I have been following this playlist and now I can proudly say "I am proficient in Excel" 😂
Thank You Parth sir ❤
Excited for more series to come up. Especially a series on valuation. The way you explain things, it gets imbibed into the head instantly. Thanks a lot for making things easier for us. It is helping me to sit for interviews with confidence.
More to come!
Hey Parth. I figured out why Intrensic growth values are same for the two companies. While EBIT is taken from HistoricalFS, everything else was linked to 'Raw FS" and that remains the was hard coded. So essentially what is happening is:
1)Invested Capital Value would be same. So the denominator in ROIC would be a fixed value (unless you change the Raw FS), aka, same across different companies.
2)Capex and WC again would be fixed, meaning fixed Reinvestment value. Now, the numerator in Reinvestment Rate would be same across.
3)Now, if you multiply the individual formulas for ROIC and Reinvestment rate together you get a different value, but still it would be wrong from points 1 and 2.
I hope this helps
Also, why did we take EBIT and NOPAT in ROIC formula?
Thanks a lot, this helped a big time!
Thank you sir for the incredible financial modeling tutorials, your clear explanations and practical examples have greatly helped me understand and improved understanding.
your hard work and dedication are truly appreciated.
@parth verma Sir I am blessed..I got a mentor like you .. Otherwise I believe I never learn financial modelling in a professional manner even spending a lot of money 🙏🙌❤
sir, You are like Ratan tata for me in the field of Providing education for free of cost. sir, if anyone does not say about your goodness it means they don't deserve such a great teacher like you. But sir, you are Invaluable and it will definitely help those students who are really seeking their carrier in the field of finance. sir just one request, if you can consider please remove watch limit of equity cohort as most of the students like me wants to see more and more to revise my concept. this is the reason because of which i am scaring of taking this course because if i crossed my time limit and still could not learn in a full fledge way than it doesn't mean for me.
You have added a lottttttttt of value i swear, I love these series
You are not just best, you are the best of the best boss. Greatly appreciated for making my life this good
learning with you always makes me confident about my future
Your learning style is outstanding, you are best at engaging your audience during watching!
Getting into the industry is beneficial by learning from you as a mentor.
Sir, While downloading the Asian paints excel from screener the growth rate was same . This is because the data of invested Cap. is taken from hardcoded data. So just downloading the excel file of a company is not enough to obtain growth rate , we will also have to input data for invested capital every time for each company ...
The way you teach and going with your speed makes us competitive. Well done.
@Parth Sir Thank you for the awesome learning and you already added value in my life .Thank you once again
My pleasure
Sir your consistency is 💯💯
Come on guys he deserves a billion likes ❤❤
More respect to u sir
yrr ye rm, data ye sb toh hua nhi h
any idea???
Great learning from this session sir 💯💯💯
Great video, done it with HDFC BANK , IGR came as 1.42% in March 22
Most Awaited Video :)
Keep uploading Lectures Sir
This channel is a gold mine ❤
Dear Parth, Thank you for sharing the video. It really boost our confidence towards financial modelling learning..
It's my pleasure
The videos are very good. It give us complete understanding of the financial modelling. I just want to suggest one thing that you can take only one company data and create this model because right now it is complicated for us to understand. You have calculate beta for avenue supermart but actually we are modelling Tata Motors.
I AGREE!
Brother Sir already told that videos are not for someone who wants to be modellor its for the one who wants to be F
in. Analyst so shall not focus on its complexity and concentrate on learning
I agree too. It gets really confusing especially around session 12 & 13 when DCF is about to get completed. Because we now have around 3 companies involved: Tata motors, Avenue supermart & Asian Paints.
For DCF series, it would have been perfectly fine if we would have continued with Avenue Supermart as we could have easily fetched the HistoricalFS data of Avenue from screener since we had already uploaded the TaMo model on it back in session 5. So we could have got the ready excel of Avenue quite easily. But since for Intrinsic growth session he took Asian paints, it made things very confusing & slightly complicated.
Great to be part of this channel & being your student!!!
Too much to learn from you sir, Thank you so much 🙏🙏
Sir you are teaching so nicely just tell me how to pratice then I will become more efficient in financial model
Thanks a lot sir for such valuable lectures
Well done parth!
Hi Parth, Thank you for providing this course! I have a few doubts when plotting growth rate for TAMO as per the excerice:
1) EBIT is negative, thus making ROIC negative.
2) Reinvestment rate is also negative, hence when multiplying negative ROIC and negative Reinvestment rate gives positive growth rate!
This pertains to Mar 2020 and Mar 2022 data.
Kindly advice on how to factor this in for better evaluation. Thanks for your support!
Continuing on to the next video, the DCF model for TAMO returns -204 Equity value per share v/s Current market price per share of 674. Model is all over the place, is this because currently the company is loss making and this model isn't suitable?
Sir you have told the topic required 17 hrs of time
Cost of equity
Cost of debt
WACC
Growth rate ....
Please take the session on this and upload it.
I hope you will full fill my request.
Thank you in advance 😊😊😊😊
This series adds great value sir!
Thankyou sir ❤️ waited for long time. First comment.🙃
Most welcome 😊
This video is really informative i have to watch this again and again
Humsa toon bachpan sai hein naphrat hui hain vala only few people can really understand 😂
Thank you, sir for providing such high quality content.
OG Parth Sir!!! Content at it best💯
Much awaited session 🫡
your working is reaaly appreciatable
You are Great parth bhaiya literally
Amazing Sessions. Loved it
So far so good Parth sir🤩🤩🤩
LEGENDARY PARTH SIR ❤🔥🔥
Parth Sir, thank you for such informative videos,hope you come with lot more videos on diverse topic of finance.
Hi Parth, wanted to know the reason for non inclusion of CWIP and Investment in ROIC calculation
Apart form that, we can also use =ABS() instead of using =- to convert -ve amount to positive.
And, honestly it is really great experience watching your Modelling sessions.
CWIP is right now not generating any kind of cashflows.. and investment is not related to operating business of the company.
You are an absolutely good tutor!
thank you so much sir for this course... learning a lot
Continue I have watched 12 lectures complete here
Valuable content! Too Good.
Sir it's very interesting .🙂 Maza aa rha hai sikhne main
sir ji you are awesome,, plz upload videos more frequently.
Great Session Sir. I am really amazed
Very Informative session on Growth Rate
Osm lecture sir ❤
Session 12 Done! Staying Consistent
Badiya sir ....loved your video
Shi main assignment taugh dedia na answer chatgpt per mile na google per
uska baad bhi data find krna which statement is true although I have submitted assignment hope for the best.
That is really great video thanks for that 💖
Thank you so much Parth:)
Awesome learning!!
Most awaited video sir
Amazing session, got to learn a lot thanks
Thank you so much ....uh gave me lot of value
Thankyou for this series!😁
Best content 🔥🔥🔥🔥🤩🤩🤩
Thank you sir for such a valuable and informative video. I have a doubt why NOPAT= EBIT (1-tax) is considered for calculating reinvestment rate and for ROIC only EBIT is considered?
Because nopat is calculated to see how company generate profit from its core operation without the use of debt whereas roic is calculate to check how the company uses its total invested capital(debt+equity) to generate profit.
thanks for this amazing session
Valuable content 👏🏼
guru ji shuru kiya tha maja aarha tha ab etna aagey aagya hu ab darr laggrha hai, ki job lagegi k nai. kyu ki kitna v padh leyta hu kam hi hota hai.
Confidence Booster series.
thank you! it really helped me alot
Awesome work sir , respect your efforts ❤❤
Amazing Sir...
Thank you...
thanks for the amazing videos
Was waiting for this
sir inki valuation pr bhi vedio bna do pleease appp sikhaoge to kch bhi smj aajyega
Amazing session
Dear Parth Sir,
You mentioned that the topic requires 17 hours of time. The areas to be covered include:
Cost of Equity
Cost of Debt
Weighted Average Cost of Capital (WACC)
Growth Rate
Could you please conduct a session on these topics and upload it?
Thank you.
Wonderful ❤
Learning a lot
While calculating Reinvestment rate shouldn't we deduct the Deprecation from the Capex ?Also whether we should include the Capital WIP as part of total Non current assets since we that also investment in Non Current assets
THANKYOU FOR SHARING YOUR KNOWLEDGE
Thanks for the amazing session🙂🙂
The reason for getting errors in the data of Asian Paint is that we have manually added the Raw Fs sheet which is totally manually created and the data in that sheet is of Tata Motors
so if we link the Raw fs data with the data sheet, then this will not be an issue.
Thank you sir 🙏
Sir could u please share daily business news analysis with us so that we would get in touch with certainties or uncertainty in market.
Great Video👍
Insightful Video sir ji. Congratulations in advance for the 10k subscribers and I hope you reach 100k soon.
Thank you so much 😀
hello sir can u make a detailed video on how to read and analyse the fiancial statement. and also some important terms in there.
Sir, the asian paints growth rate is same to the model you drew beacuse you doesn't change the Raw fs it is similar to the model we upload on screener i change it and the growth rate also changed with it not a conincedence Thankyou so much sir for the playlist i learn alot and also i have a query about neagtive growth rate + negative EBIT why we are considering negative values
Hi! I have a doubt
Why we took EBIT (1-t) as our profits available? Because if there is interest expense then after deducting the interest and availing tax benefit for the same we will be left with the actual profits that is available to reinvest? So the formula should be Reinvestment/ PAT for Reinvestment Rate calculation?
Good
Hi Sir, thank you for the amazing series. This might just be the thing to get my foot in the door in the equity world. Just had a quick question. the ROIC formula according to the textbook defination is NOPAT/Invested Capital. Wanted to ask if EBIT and NOPAT are interchangebly used for calculation of ROIC ?
very nice
thanku so much sir
Make a video on how to make a break up revenue model and debt schedule .
Intrinsic Growth is coming same for both companies because we have not updated CASH FLOW statement due to which NET Capex came same for both companies
I have one doubt, in the Raw FS sheet we hard coded the data, and then we linked the Intrensic growth rate sheet with it, so after uploading it on screener, how will it change?
Thank you sir
@thevaluationschool ,why have we taken ROIC as EBIT/ Invested Capital.
It is an after tax measure right? We should take NOPAT instead of EBIT..please enlighten about this
Yes I just cross checked this formula online & it is true. ROIC is supposed to be NOPAT/Invested capital.
And NOPAT ideally is Post tax figure while EBIT is Pre tax. This might be a silly question but there's no tax on invested capital, so does that make it a Pre tax figure & hence to match comparability, Parth might have taken EBIT since it is also a Pre tax figure? Ideally capital has no tax but idk. I'm just trying to understand this situation.
At the 32:15 mark in Session 12,acquisitions should be included under Capital Expenditures (CapEx) Acquisitions, like purchasing businesses or significant assets, are a crucial part of CapEx as they involve significant investment in long-term assets. Including this will ensure a complete and accurate view of the company’s financial activities and strategic growth.
As always, a great tutorial. I came across a situation wherein EBIT was negative. How is it to be treated?
Luv u sir ❤
thanks a lot