OVERVIEW IN KEYWORDS
The following summarises the content of each course using key words. More information about each can be seen by clicking the “More details” buttons.
III.1 Model Planning, Design and Best Practices
Principles of decision design. Addressing the right decision. Avoiding the choice fallacy. Decision scope, objectives, and criteria. Challenges in making good decisions. The meaning of decision quality. Frameworks and tools. Frameworks and tools to analyse decision context and business strategy. Macro economics, five forces analysis, portfolio composition analysis. Mapping the decision to a model. Criteria and model outputs. Sensitivity and scenario analysis. In-depth planning. Data versus formula-driven structures. Data sources and structures. Defining logic, variables, flow and granularity. Historical versus forecasted analysis. Role of inflation. Updating requirements. Horizontal or vertical time axis. Structural limitations versus parameter flexibility. Benefits of modularity. Approaches to link modules. Decision sequences. Logic reversals. Best practices in model building. Principles for design, layout, structure, and formatting. Principles of transparency. Complexity reduction and optimisation. Circularities and other issues.
III.2 Principles of Corporate Finance and Valuation
Valuation principles and approaches. Comparables and cash flow valuation. Enterprise and equity valuations. Terminal value calculations. Value-driver formulas. Financial statement impact of business operations and transactions. The modelling of integrated financial statements. Issues to consider. Step-by-step methodology. Balancing the balance sheet. Depreciation and amortization calculations. Error elimination and checking for robustness and reasonableness of forecasts.
Modelling exercises and quizzes.
III.3 Macros, Automation and Algorithms
Automation of common tasks. Key steps to getting started. Using Loops and Conditionality. Modules, variables, and objects. Working with ranges. Best practices. Run-time inputs and alerts. Debugging and checking. Worksheet events and changes. User-defined functions. Sensitivity and scenario analysis. Circular references. GoalSeek. Automating steps in data cleaning. Automation of filters and extraction. Data refresh. Multiple database queries and repeated use of criteria ranges. Determining the position and size of a data set. Reversing data sets by rows or columns. Working through files in folders. Adding or deleting worksheet categories. Reversing and splitting text items. Monte Carlo Simulation. Modelling exercises and quizzes.