RS 301 · Level 300 · Advanced

Financial Modeling and Deal Valuation

Name: RS 301 Financial Modeling and Deal Valuation
Author: Elizabeta Dimoska

This course teaches the learner to build a three-statement model from a blank spreadsheet and value a company four ways, the core skill set of an investment banking analyst. This free course by Elizabeta Dimoska runs to ten modules and about 25 study hours.

A close-up of an electronic desk calculator

Photo: Coyau, CC BY-SA 3.0, via Wikimedia Commons (cropped).

Start Module 1 →

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What you'll be able to do

Lay out a model to professional standards.
Forecast an income statement, balance sheet and cash flow statement that balance.
Build a discounted cash flow valuation with sensitivity tables.
Run comparable company and precedent transaction analyses.
Build a simple leveraged buyout model.

Before you startPrerequisite: RS 201 Financial Statement Analysis, RS 202 Corporate Finance, How to Price a Stock. Tools used: a spreadsheet for every module, company filings, the RiskStock stock valuation calculator as a cross-check.

How this course worksEach module has objectives, the lesson with worked examples, a practice mission using a real filing, a RiskStock tool or a spreadsheet, and a quiz. Pass a module quiz with 75% to mark it complete; quizzes can be retaken as often as you like. When the modules are done, complete the capstone and the 20-question final exam (pass mark 70%, one retake every 24 hours). Passing both unlocks a certificate of completion, and completing all nine university-level courses earns the Advanced Diploma. Everything is saved in your browser; no account is needed.

The syllabus

Ten modules and about 25 study hours in all: short, dense lessons (about 56 minutes of reading), then the worked problems, practice missions, quizzes and the capstone.

Modeling standards Advanced

Lay out a model so another person can audit it in minutes.

~6 min read · ~2.5 hr with practice

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Historicals and forecast drivers Advanced

Spread historical statements, calculate driver ratios and choose forecast assumptions.

~6 min read · ~2.5 hr with practice

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Forecasting the income statement Advanced

Build a forecast income statement from the drivers.

~5 min read · ~2.5 hr with practice

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The balance sheet and supporting schedules Advanced

Forecast each balance sheet line through a roll-forward schedule.

~5 min read · ~2.5 hr with practice

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The cash flow statement and balancing the model Advanced

Derive the cash flow statement from the other two statements and debug a model that does not balance.

~6 min read · ~2.5 hr with practice

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DCF part 1, unlevered free cash flow Advanced

Derive unlevered free cash flow from the model and choose a forecast horizon.

~5 min read · ~2.5 hr with practice

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DCF part 2, terminal value and the equity bridge Mastery

Calculate terminal value two ways, move from enterprise value to a share price and build a sensitivity table.

~6 min read · ~2.5 hr with practice

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Comparable company analysis Mastery

Select peers, calculate trading multiples correctly and apply them to a target.

~6 min read · ~2.5 hr with practice

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Precedent transactions and the football field Mastery

Value a company from past acquisitions and summarize all methods on one chart.

~5 min read · ~2.5 hr with practice

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Introduction to the leveraged buyout model Mastery

Build a simple LBO and calculate the sponsor’s return.

~6 min read · ~2.5 hr with practice

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Companion workbooks

Each model in this course comes as two Excel files. The starter has the layout, the inputs and the historical figures filled in, with every cell you need to build shaded yellow. The solution has every formula built and its checks reading OK. Blue cells are inputs, black cells are formulas and green cells link to another sheet, the conventions taught in Module 1.

Model	Modules	Download
Three-statement model	1 to 5	Starter (.xlsx) · Solution (.xlsx)
DCF valuation	6 to 7	Starter (.xlsx) · Solution (.xlsx)
Trading comparables	8	Starter (.xlsx) · Solution (.xlsx)
Precedent transactions and football field	9	Starter (.xlsx) · Solution (.xlsx)
Leveraged buyout	10	Starter (.xlsx) · Solution (.xlsx)

The files work in Excel, Google Sheets and LibreOffice. Maple Outfitters and the peer companies are fictional; the figures are for practice only.

After the modulesThe capstone project → When you're readyFinal exam & certificate →

Your notes

Every note you take in a module collects here. They're stored only in this browser, so export them to keep them.

Common questions

Is RS 301 really free?

Yes. All ten modules, the quizzes, the capstone, the 20-question final exam and the certificate are free and need no sign-up. Your progress, scores and notes are saved privately in your own browser.

What should I know before starting?

The suggested prerequisite is RS 201 Financial Statement Analysis, RS 202 Corporate Finance, How to Price a Stock. This is a 300-level course and assumes those courses: the modules move quickly and use their terms without re-explaining them.

How long does it take?

About 25 study hours. The reading itself is short and dense, about 56 minutes; most of the time goes on the worked problems, the practice missions, the quizzes and the capstone.

Is the course for Canadian or US investors?

Both. Where rules, terms or tax treatment differ between Canada and the United States, the module says so and names both versions.

Is the certificate a professional qualification?

No. It is a certificate of completion from a free educational course. It is not a licence, an accreditation or a professional designation.

Who wrote this course?

It was written by Elizabeta Dimoska, founder and writer of RiskStock. RiskStock is educational and is not a registered dealer or adviser.

Keep learning

Educational content only — not investment, tax or legal advice. Companies, tickers and figures in this course are illustrative examples, not recommendations to buy or sell any security. Regulatory figures, limits and tax rules change; confirm current details with the regulator or tax authority. Worked examples are not forecasts. RiskStock is not a registered dealer or adviser, and its certificates are certificates of completion, not licences. Course written by Elizabeta Dimoska.