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Hands-On Financial Modeling with Microsoft Excel 2019

You're reading from   Hands-On Financial Modeling with Microsoft Excel 2019 Build practical models for forecasting, valuation, trading, and growth analysis using Excel 2019

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Product type Paperback
Published in Jul 2019
Publisher Packt
ISBN-13 9781789534627
Length 292 pages
Edition 1st Edition
Tools
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Author (1):
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Shmuel Oluwa Shmuel Oluwa
Author Profile Icon Shmuel Oluwa
Shmuel Oluwa
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Table of Contents (15) Chapters Close

Preface 1. Section 1: Financial Modeling - Overview
2. Introduction to Financial Modeling and Excel FREE CHAPTER 3. Steps for Building a Financial Model 4. Section 2: The Use of Excel - Features and Functions for Financial Modeling
5. Formulas and Functions - Completing Modeling Tasks with a Single Formula 6. Applying the Referencing Framework in Excel 7. Section 3: Building an Integrated Financial Model
8. Understanding Project and Building Assumptions 9. Asset and Debt Schedules 10. Cash Flow Statement 11. Valuation 12. Ratio Analysis 13. Model Testing for Reasonableness and Accuracy 14. Another Book You May Enjoy

Using ratios to find financially stable companies

Let's assume that you are looking to invest in a company that is financially stable and has a good market value. We can find out the best company for this using the following ratios:

  • EPS: This can be useful ratio for finding the best company to invest in because it shows you how much money the company makes as profit for each share that the company sells
  • P/E ratio: This ratio tells you that there might be more growth in the future of the company, and it also shows you how much an investor is willing to pay for a share

We will go through the following steps to use these ratios:

  1. Open the CompanyInvestment.xlsx file, where you will find details about some companies, such as their PAT, number of shares, and the market price of each share, as shown in the following screenshot:
  1. Now, we will calculate the EPS for each company...
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