Keep doing these basic concept videos pleeease! Your videos are by far the best, your explanations are the most comprehensive and clear I can find on TH-cam, I’m very glad I found your channel! You’re doing big things man, thanks!
As a highschool student who's strongly considering financing as a career, I really appreciate your videos and all the knowledge you share. Your channel is amazing man
Edit: I commented on bots who try to scam by leaving comments on my channels that they were a scam and now they are replying to all comments saying that I robbed them or scammed them. So ridiculous...please ignore them. Re the video - Like I said, there's a LOT more advanced things can get but not sure how interested people would be if I made things way too complex. Let me know what you all want to see!
Would be pretty cool! Also, I want to become an IB but now I'm hearing more and more about how bad it is. Why do people stay in IB if the conditions are so bad?
This is very helpful. thank you. It would be great to see how you read and interpret the financial statements and annual report of company and if/how you adjust the figures when you put them into your model. For example you are in putting percentages but some examples using the raw data would be awesome.
Hey this was really good, those 3 functions from excel (offset, choose, and what if analysis) it's exactly what I've been looking for company valuation, cheers, keep up the good work! btw, that's some clean formatting
Hey Ben! I don't know if my comment is still helpful considering that I arrived 13 months later. Still, these educational videos on valuation and financial modeling are really helping me learn way more compared to what I learned in the university. I'm also watching them to prepare for job interviews with investment banks, PE firms, and Corporate Finance Jobs. The videos are great! Keep them coming, please!
please do more advanced DCF with more detailed assumptions, all your content is very helpful to learn more about valuation, especially valuation which is more advanced
These videos where you do walkthroughs on building models are really helpful and I feel like you should keep making them I find them useful but then again I’m one of many viewers. They definitely help me considering I’m about to go into investment banking.
Really grateful for such informative and concise videos. Just a request as in could you make a series of how to take "assumptions". Because as far as I am able understand, the rest is putting in info from comp. balance sheet ,income statement from their annual ,quarterly etc reports but the main is how you take assumptions and how do you justify them before getting to a conclusion. 1. Could you make a series on different assumptions ,based on different industries,sectors using a live example just like you used Tesla? 2. Could you cover some case studies and point out some content to read to increase my acumen in this topic (be it some books,newsletters etc)
I'm letting you know that tutorials like the pharma example you did at jp morgan would be highly appreciated. Also, great work on this channel. I like your content!
it's super helpful, but to give you 2 cents: pick what you are trying to teach and focus on it. try to break down what you are trying to communicate to more manageable steps and show them in the most appropriate way - e.g. in the first section of this video, I felt like I was learning all at once 1) how valuation models work 2) how models are structured 3) formulas to use 4) etc. etc. etc.. - but all without the wished for level of detail. Something closer to the sensitivity tables section, in which you focus on showing how they work, I think was very effective. Thank you for this, it is amazing content!
The Offset() function in Excel is volatile, meaning it will recalculate when any cell is changed. It is OK when you have a simple sheet, but as things get more complex it will slow down sheet recalculation. Volatile functions should be avoided when possible; you can easily implement your sheet with vlookup() or similar, which will also more easily extend to more than 3 scenarios. You might want to demonstrate a Dividend Discount model next; those are good for mature companies paying out stable dividends.
I'm working on a pitchbook for my M&A course at college and this is so helpful, because I was asked to do a DCF analysis but I'm so lost hahah. This is super helpful for me. Thank you so much for this.
This was really helpful!!! Can you explain other valuation methodologies like LBO model, precedent transaction analysis etc. Alongside this, i would really appreciate if you talk about the key terminology and formulas required to know for investment banking e.g. debt capital markets, bonds, IPOs, M&A etc.
Useful and concise tutorial DCF video. It would be also good to do a video with more complex model build up such as what's the method to forecast the revenue line of companies in different sectors and what's the easiest way to balance the three statements.
Hi. For the WACC computation, we have to have the equity value which is obtained from the DCF model where a WACC is assumed already. Thus, may I ask how can we come up with the assumed WACC and what is the purpose of the computed WACC if we already have the assumed WACC? Thank you! Or do we use the mkt cap to replace equity value you linked in your example in the video? Thank you!
I think this content is solid. I know these videos may seem long to others but it would be helpful to slow down a little to help us understand more about the formulas!
Very useful video and it was very intriguing. However, it may be beneficial to create some type of Excel shortcut and tip video we can refer to so that each time you use excel in a video you can refer to that video and we can follow more quickly. Thanks!
Also if you can, you should do like a recreation of a successful merger or acquisition you were part of. For example, how you started with the pitch book and how your team won the deal, then the creation of the model, then how it changed after comments from your MD etc. I know it's quite niche but a lot of people are looking for actual real life examples instead of signing up for these online courses so you get a more ''realistic' view from someone who was actually working on this.
This is a sell-side model ser. Buy side models are much more detailed on the drivers and use scenarios manager more than DT ...It's understandable as sell-siders are transactional in nature and wouldn't be expected to understand a new business in depth
would love to see a from start to finish analysis of a tech company: DCF model, working through financial statements, any other analyses you do). the grindy work that no one likes to see lol it'll be cool to see how you put it all together
Can you explain How you solve the circularity issue with WACC and equity value? Since, WACC needs the equity value, but to Get the equity value you need the WACC😀 Great video!
You can use the current equity value of the company instead of the implied market cap from the DCF which is what I normally would do on the job actually so didn't really showcase best practice in the video - thanks for pointing this out!
hi rareliquid. Could you share a series of how bankers value a company by using all of the tools and models available so that we can learn the techniques of the professional? Meanwhile, how probable do you think a sophisticated DCF model would be able to predict share price reasonably? Could you share the techniques of how bankers used different tools in buying or investing in a company. How should banker evaluate start up company with negative cashflow as well I am interested to be an investor who will buy and hold good companies as I find that is the easiest way to grow your money with massive return than short term trading. kindly share
Hey Ben I'm not sure why your WACC's equity value is linked to your model's equity value. Your model's equity value is determined by the model's enterprise value which was obtained from an assumed WACC to begin with.
Ben, which plans should I join in your patrons to get your excel spread sheet on DCFs? I love to learn the details for it. Please let me know. Thank you.
Do you know if I can find current assets and current liabilities by segments? S&P Capital IQ only shows total assets and total liabilities, but I need current assets and liabilities so i can find the change in nwc for each segment since I am valuing each segment separately.
Dude can you go through all of it really step by step. I couldn't understand anything you were doing. It would be nice if you could do like a long video or videos* in parts. That show step by step how you are doing it. I learned how to make a DCF on college, but it's always usefull to see someone elses way of doing stuff.
As a fellow banker, the title is misleading. IB doesn’t use DCF to value stocks, they use it to analyze the companies financials. Using DCF to value stocks is what people in equities and securities do. Also DCF is just one of the many widely used valuations, DCF is prone to bias due to the vast amount of assumptions you need to make. Thus only using only DCF is a pretty bad move for any IB to make.
I agree bankers use DCFs to value companies not for investing since bankers don't invest in the markets. Am using the words stocks and companies interchangeably here and didn't mention in the video that bankers actually purchase stocks so hopefully it wasn't too confusing
Yes please continue these financial modelling videos with its components. Its the rarest type of content one would find on youtube one would get.
Keep doing these basic concept videos pleeease! Your videos are by far the best, your explanations are the most comprehensive and clear I can find on TH-cam, I’m very glad I found your channel! You’re doing big things man, thanks!
This is extremely useful; would it at all be possible for you to create a video outlining your go-to shortcuts for excel formatting?
noted!
this would be hype. just a list of shortcuts that will save your life
yup that would be very helpful
absolutely agree! I think that'll be a hit.
Totally agree
As a highschool student who's strongly considering financing as a career, I really appreciate your videos and all the knowledge you share. Your channel is amazing man
Happy to help!
Edit: I commented on bots who try to scam by leaving comments on my channels that they were a scam and now they are replying to all comments saying that I robbed them or scammed them. So ridiculous...please ignore them.
Re the video - Like I said, there's a LOT more advanced things can get but not sure how interested people would be if I made things way too complex. Let me know what you all want to see!
yes, definitely interested!
Would be pretty cool! Also, I want to become an IB but now I'm hearing more and more about how bad it is. Why do people stay in IB if the conditions are so bad?
Valuable information shouldn’t be easy, isn’t it?
@@alexahadi139 because it’s temporary, 2 years of hard work with a lot of exit options at the end of it
Sounds very interesting!
Rare diamond right here. Keep this type of content going! I find you the most valuable youtuber atm!!
thank you vlad!
Just found your channel and it's much better than other bigger "finance" channels! I'm sure it's gonna keep growing
It's very niche but these videos are one of the most educational ive seen
noted thanks!
These vids are the timeless ones.
s/o from South Africa
Its great to see this kind of educational vids in yt. It really shows that if u use the internet right, it can be super beneficial for u. Thank you.
This is very helpful. thank you. It would be great to see how you read and interpret the financial statements and annual report of company and if/how you adjust the figures when you put them into your model. For example you are in putting percentages but some examples using the raw data would be awesome.
Hey this was really good, those 3 functions from excel (offset, choose, and what if analysis) it's exactly what I've been looking for company valuation, cheers, keep up the good work! btw, that's some clean formatting
for MAC users, instead of F2 you can hit control U
Thanks for posting this! Very helpful for someone who doesn't have a finance background
Thank you! It was useful for me and definitely not boring. You have interesting experience to share!
This was really good and it helped me understand a lot about models! Please cover more advanced methodologies !
Hey Ben! I don't know if my comment is still helpful considering that I arrived 13 months later. Still, these educational videos on valuation and financial modeling are really helping me learn way more compared to what I learned in the university. I'm also watching them to prepare for job interviews with investment banks, PE firms, and Corporate Finance Jobs.
The videos are great! Keep them coming, please!
please do more advanced DCF with more detailed assumptions, all your content is very helpful to learn more about valuation, especially valuation which is more advanced
I found this exceptionally helpful and really thoughtful. Thank you for your educational videos on building out models on how to value companies. =)
These videos where you do walkthroughs on building models are really helpful and I feel like you should keep making them I find them useful but then again I’m one of many viewers. They definitely help me considering I’m about to go into investment banking.
Mate, this is gold. thank you so much.
From Australia.
Really grateful for such informative and concise videos. Just a request as in could you make a series of how to take "assumptions". Because as far as I am able understand, the rest is putting in info from comp. balance sheet ,income statement from their annual ,quarterly etc reports but the main is how you take assumptions and how do you justify them before getting to a conclusion.
1. Could you make a series on different assumptions ,based on different industries,sectors using a live example just like you used Tesla?
2. Could you cover some case studies and point out some content to read to increase my acumen in this topic (be it some books,newsletters etc)
Once I make some more detailed models for a few of the companies I plan to cover I can try to make one of these videos. Thanks for the suggestion!
The Video was super helpful and not boring at all!! Thanks a lot
liked the first part! keep going with these kind of videos
loved it!
thanks!
I'm letting you know that tutorials like the pharma example you did at jp morgan would be highly appreciated. Also, great work on this channel. I like your content!
it's super helpful, but to give you 2 cents: pick what you are trying to teach and focus on it. try to break down what you are trying to communicate to more manageable steps and show them in the most appropriate way - e.g. in the first section of this video, I felt like I was learning all at once 1) how valuation models work 2) how models are structured 3) formulas to use 4) etc. etc. etc.. - but all without the wished for level of detail. Something closer to the sensitivity tables section, in which you focus on showing how they work, I think was very effective. Thank you for this, it is amazing content!
I learnt a lot from your TH-cam series! Thanks a lot!
yes, would like to see more complex tutorials videos!
The Offset() function in Excel is volatile, meaning it will recalculate when any cell is changed. It is OK when you have a simple sheet, but as things get more complex it will slow down sheet recalculation. Volatile functions should be avoided when possible; you can easily implement your sheet with vlookup() or similar, which will also more easily extend to more than 3 scenarios. You might want to demonstrate a Dividend Discount model next; those are good for mature companies paying out stable dividends.
such videos are useful and have a place in the video lineup. keep it up bro
Excellent. I'm learning a lot with your videos!
This was a great video! I would love to see some of your other valuation methods in excel and observe the thought process you use there as well.
This is very useful and professional , looking forward for more video like this!!!
Extremely useful content! Liked and subscribed!
thanks for taking the time to post
They may be not as much popoular but this is really awesome for me and it let's me know what the job is really about
Definitely useful, would want more of such videos!
Thank you so much! So much value in a single video 😊
High quality content! Thanks! :)
This is great man! Love these kind of videos
Glad you enjoyed!
Great and useful Video! It would be great if you can share some knowledge about LBO model in future
This channel is just amazing!
I'm working on a pitchbook for my M&A course at college and this is so helpful, because I was asked to do a DCF analysis but I'm so lost hahah. This is super helpful for me. Thank you so much for this.
Yes, I’m enjoying watching your videos. Maybe you can share as much as details you can.
Please a video on a top down approach for revenue build up will be useful. This DCF video is really insightful
Noted!
This was really helpful!!!
Can you explain other valuation methodologies like LBO model, precedent transaction analysis etc. Alongside this, i would really appreciate if you talk about the key terminology and formulas required to know for investment banking e.g. debt capital markets, bonds, IPOs, M&A etc.
Learn corporate finance
thanks for the video, adds great value to my learning
Useful and concise tutorial DCF video. It would be also good to do a video with more complex model build up such as what's the method to forecast the revenue line of companies in different sectors and what's the easiest way to balance the three statements.
This helps sooo much!!!!!! Looking forward to more educational videos!!!!!!
Hi. For the WACC computation, we have to have the equity value which is obtained from the DCF model where a WACC is assumed already. Thus, may I ask how can we come up with the assumed WACC and what is the purpose of the computed WACC if we already have the assumed WACC? Thank you!
Or do we use the mkt cap to replace equity value you linked in your example in the video? Thank you!
I think this content is solid. I know these videos may seem long to others but it would be helpful to slow down a little to help us understand more about the formulas!
Very useful video and it was very intriguing. However, it may be beneficial to create some type of Excel shortcut and tip video we can refer to so that each time you use excel in a video you can refer to that video and we can follow more quickly. Thanks!
⏱Timestamps⏱
0:00 - Introduction
1:08 - Multiple Scenarios
10:59 - Sensitivity Tables
14:47 - Calculating WACC
Very concise and helpful! For starter this might need more basic concept intro
my previous video provides basic info!
Your videos help me a lot! Thank you
Great stuff man!
Also if you can, you should do like a recreation of a successful merger or acquisition you were part of. For example, how you started with the pitch book and how your team won the deal, then the creation of the model, then how it changed after comments from your MD etc. I know it's quite niche but a lot of people are looking for actual real life examples instead of signing up for these online courses so you get a more ''realistic' view from someone who was actually working on this.
i am going to be making a video about a transaction i worked on so that will be coming in a few weeks! great suggestion
yessssss, more tutorial like this pls sir!! :D
these videos help out a lot! thanks
This is a sell-side model ser. Buy side models are much more detailed on the drivers and use scenarios manager more than DT ...It's understandable as sell-siders are transactional in nature and wouldn't be expected to understand a new business in depth
really helpful, appreciated!!
5:37 can you explain why D&A is 80-95 % of capex, is that standard? is that higher for high cap companies? Great video
Please keep doing videos about Investment Bankers tasks, thank you
Really great video!
really insightful, would love more technical analysis
commenting so you post way more of this stuff!
would love to see a from start to finish analysis of a tech company: DCF model, working through financial statements, any other analyses you do). the grindy work that no one likes to see lol it'll be cool to see how you put it all together
Those FactSet macro shortcuts are coming in clutch! Very nice video :)
Can you explain How you solve the circularity issue with WACC and equity value? Since, WACC needs the equity value, but to Get the equity value you need the WACC😀 Great video!
You can use the current equity value of the company instead of the implied market cap from the DCF which is what I normally would do on the job actually so didn't really showcase best practice in the video - thanks for pointing this out!
hi rareliquid. Could you share a series of how bankers value a company by using all of the tools and models available so that we can learn the techniques of the professional?
Meanwhile, how probable do you think a sophisticated DCF model would be able to predict share price reasonably? Could you share the techniques of how bankers used different tools in buying or investing in a company. How should banker evaluate start up company with negative cashflow as well
I am interested to be an investor who will buy and hold good companies as I find that is the easiest way to grow your money with massive return than short term trading. kindly share
Really insightful, thank you for making such vids!
Dude you are a star man. Can you also do an LBO crash financial model. Thank you
Banger, nuff said
Very precious video 👏🏻🇧🇷, tks
Can you share the excel file in this video so that we can understand the formulas used? Thanks
Hey Ben I'm not sure why your WACC's equity value is linked to your model's equity value. Your model's equity value is determined by the model's enterprise value which was obtained from an assumed WACC to begin with.
Another one, Let’s go !
thanks!
Yes for more complex models please.
Since you worked with biotech and healthcare businesses, it would be cool if you could do a DCF on Novo Nordisk
How are you linking equity value to the model calc without getting a circular reference error? Something seems off in the video. TY
This is incredibly helpful!! I think it could be helpful to make sth. similar for Comps as well :)
Ben, which plans should I join in your patrons to get your excel spread sheet on DCFs? I love to learn the details for it. Please let me know. Thank you.
they're available to the terabyte tier!
did you use Bloomberg terminal levered beta's (since they're adjusted) as input for beta? I doubt you were using yahoo beta's as an input for DCF
Can I have access to this Excel with the Gigabyte Patron subscription in the Patreon website?
Great video! Please more IB based videos!!
will be posting career related videos every weekend!
Do you know if I can find current assets and current liabilities by segments? S&P Capital IQ only shows total assets and total liabilities, but I need current assets and liabilities so i can find the change in nwc for each segment since I am valuing each segment separately.
Dude can you go through all of it really step by step. I couldn't understand anything you were doing.
It would be nice if you could do like a long video or videos* in parts. That show step by step how you are doing it.
I learned how to make a DCF on college, but it's always usefull to see someone elses way of doing stuff.
Please more instructional videos. The longer the better.
super helpful
Good content bro
As a fellow banker, the title is misleading. IB doesn’t use DCF to value stocks, they use it to analyze the companies financials. Using DCF to value stocks is what people in equities and securities do.
Also DCF is just one of the many widely used valuations, DCF is prone to bias due to the vast amount of assumptions you need to make. Thus only using only DCF is a pretty bad move for any IB to make.
I agree bankers use DCFs to value companies not for investing since bankers don't invest in the markets. Am using the words stocks and companies interchangeably here and didn't mention in the video that bankers actually purchase stocks so hopefully it wasn't too confusing
How do you weight terminal growth rate to terminal exit multiple? The exit multiple method seem to be more used in the industry nowadays
Great videos thanks
It is really good😊
Thanks for your video, can you share some tips on how you achieve perfection in your excels or ppt?
Shouldn't the equity value be the market value of equity when calc WACC?
Where did you learn all those excel shortcuts; is it something you’re expected to know before you start IB or do you pick it up on the job/internship?
almost everything was learned on the job though ofc it is helpful to have some knowledge going into it
Please add a new video about excel shortcut you used in JPM. I really need it. Thanks for your helpful video!
Thank you very much again for this video! Can you refer me to a video or do you have any advice to improve my excel skills?
Cheers from France
Thanks a lot! How is it explained that change in NWC is a %change of revenue ?
is there an excel work book to follow along?