Video: Forecasting & Valuation

📐 Forecasting & Valuation Basics in Excel

This video shows you how to build basic financial forecasts and perform business valuation models using Excel — a crucial skill for evaluating potential investments and long‑term returns.

💡 How to Get the Most From This Video

  • Follow along in Excel: Pause when formulas or models are introduced and replicate them step by step.
  • Use sample or real data: Apply the valuation models to a real company or dummy dataset to test your understanding.
  • Document your assumptions: Note growth rates, discount rates, and expected cash flows separately to track your reasoning.
  • Revisit calculations: Periodically check and update your forecast as new data becomes available — good forecasting is ongoing.
Forecasting & Valuation – Excel Financial Modeling Tutorial

🎯 Key Topics Covered

  • Projecting Future Earnings & Cashflows — Estimating future performance based on historical data
  • Discounted Cash Flow (DCF) — Calculating present value of future cash flows
  • Valuation Multiples & Metrics — P/E, EV/EBITDA and how to compare companies
  • Sensitivity Analysis — Testing how different assumptions affect valuations
  • Creating a Reusable Excel Template — Setting up spreadsheets that can be updated as new data comes in

Next Steps: After watching, download financials for a company you follow and build a forecast model in Excel. Run different scenarios — conservative, base, optimistic — and see how valuation changes. This helps you estimate realistic outcomes and make more informed investment choices.

📝 Reflection Questions

  • Which valuation method seems most intuitive to you — DCF or multiples?
  • How sensitive are your valuation results to changes in growth or discount rate assumptions?
  • Would you trust your own model to make investment decisions, or would you use it as a rough guide?
  • How often should you update your forecasts to account for new data or changing conditions?
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