**#1 Best Selling Accounting Course on Udemy (Learn Finance and Accounting the Easy Way)! ** ACCORDING TO BUSINESS INSIDER: “ Haroun is one of the highest rated professors on Udemy, so you can expect to be in good hands through the course of your education.” ** He is the author of the best selling business course on Udemy this year called ‘An Entire MBA in 1 Course’**

**This course will help you understand accounting, finance, financial modeling and valuation from scratch (no prior accounting, finance, modeling or valuation experience is required).**

After taking this course you will understand how to create, analyze and forecast an income statement, balance sheet and cash flow statement.

By the end of his course you will also know how to value companies using several different valuation methodologies that I have used during my Wall Street career so you can come up with target prices for the companies that you are analyzing.

By the end of this course you will also know how to analyze financial statements using many different financial ratios/formulas that I have used in my hedge fund, Goldman Sachs and venture capital career.

Lastly, I am teaching this course in a much more visual and entertaining way; I hope you enjoy the course as I always use an ‘edutainment’ and visualization teaching approach to make complex topics simple/easy to understand.

Please note that if you already signed up for my course called “Hedge and Mutual Fund Careers: The Complete Guide,” some of the accounting and finance topics in this course were already covered in the Hedge and Mutual Fund Careers: The Complete Guide course.

Thanks

### Course Introduction

This course is for:

anyone interested in how accounting works (no prior accounting experience is needed).

anyone interested in how finance works (no prior finance experience is needed).

anyone interested in how modeling works (no prior modeling experience is needed).

anyone interested in how valuation works (no prior valuation experience is needed).

anyone interested in how financial ratios works (no prior financial ratios experience is needed).

### Accounting Part 1 of 3: Income Statement Analysis

Why is the income statement important and how can it help you achieve your goals? Once you understand the income statement, balance sheet and cash flow statements (all explained in this course), then we can move on to the modeling and then the valuation section of this course.

An explanation of the income statement (assumes you have no experience with this topic).

An example of an income statement (attached is an excel version of this statement).

Please find attached the income statement exercise. The instructions for the exercise are listed on the first tab in the attached Excel spreadsheet. When you have completed the exercise, please watch the next lecture for an explanation of the answers. Thanks

A discussion of the income statement exercise results.

### Accounting Part 2 of 3: Balance Sheet Analysis

Why is the balance sheet important & how can it help you achieve your goals? Once you understand the income statement, balance sheet and cash flow statements (all explained in this course), then we can move on to the modeling and then the valuation section of this course.

An explanation of the balance sheet (assumes you have no experience with this topic).

An example of a balance sheet (attached is an excel version of this statement).

Please find attached the balance sheet exercise. The instructions for the exercise are listed on the first tab in the attached Excel spreadsheet. When you have completed the exercise, please watch the next lecture for an explanation of the answers. Thanks

A discussion of the balance sheet exercise results.

### Accounting Part 3 of 3: Cash Flow Statement Analysis

Why is the cash flow statement important & how can it help you achieve your goals? Once you understand the income statement, balance sheet and cash flow statements (all explained in this course), then we can move on to the modeling and then the valuation section of this course.

An explanation of the cash flow statement (assumes you have no experience with this topic).

An example of a cash flows statement (attached is an excel version of this statement).

Please find attached the cash flow statement exercise. The instructions for the exercise are listed on the first tab in the attached Excel spreadsheet. When you have completed the exercise, please watch the next lecture for an explanation of the answers. Thanks

A discussion of the cash flow statement exercise results.

How are the cash flow statement, balance sheet and income statement connected?

### Financial Modeling Part 1 of 4: Introduction and Best Practices

Why is financial modeling important & how can it help you achieve your goals? Now that we understand how to analyze and create an income statement, balance sheet and cash flow statement, we can project the aforementioned financial statements. Once we are finished with the 4 valuation sections, then we will learn how to come up with the appropriate target prices for companies we are doing research on.

Please find attached a 1 page document containing 25 of my modeling and valuation best practices. Thanks

### Financial Modeling Part 2 of 4: Where Do I Get Historical Data From?

An introduction to 3 crucial (and free) sources where we can get data to create our financial model forecasts.

What is investor relations and how can the investor relations function help us to better understand companies we are considering investing in?

All investors can now get access to information at the exact same time. This lecture will explain exactly where to get this information and how to navigate several online documents, including the 10-K, 10-Q, S-1 IPO filings etc.

I used to pay thousands of dollars per month/year for Bloomberg access. I will teach you how to get almost all of that information for free!

Learn what a quarterly earnings call is and how it can help you understand investment ideas better.

### Financial Modeling Part 3 of 4: Case Study: Building a Model for LinkedIn

This section is an extremely in depth overview of how I analyze LinkedIn (ticker: LNKD), including creating financials, forecasting financials and several different valuation methodologies, including discounted cash flow (DCF), P/E, P/R, terminal value calculation, weighted average cost of capital calculation, total addressable market analysis and more.

How can I research what a company does? What are the best resources?

How do I calculate the size of the total addressable market for LinkedIn's products, what does this mean and why is this important when analyzing a company or creating a financial model?

This lecture explains how to navigate and set up a professional financial model.

Please open the attached PDF of the LinkedIn earnings press release before viewing this lecture. Thanks

Basics on how to forecast the income statement, cash flow statement and balance sheet for my LinkedIn model.

### Financial Modeling Part 4 of 4: Financial Model Exercise

An introduction to financial modeling (used so we can come up with target prices for the companies we analyze).

Please find attached the financial modeling exercise. The instructions for the exercise are listed on the first tab in the attached Excel spreadsheet. When you have completed the exercise, please watch the next lecture for an explanation of the answers. Thanks

An in depth discussion of the answers to the financial modeling exercise. "Learn to read financial statements like a good book!"

### Valuation Part 1 of 6: Introduction and Best Practices

Now that we know how to create and model financial statements, we can learn how to value companies based on the financial statements that we created.

It is crucial that we understand what kind of investors we are or work for as growth investors value companies in different ways than value investors do.

Please find attached the 25 Valuation and Modeling Best Practices PDF. Thanks

### Valuation Part 2 of 6: Discounted Cash Flow (DCF)

What does discounted cash flow (DCF) mean and why is it important to helping us value companies? How can we create a DCF?

What is the terminal value and why is it crucial for us in order to value a company based on discounted cash flow analysis?

How can we calculate what rate to discount our future cash flows at? We will discuss the cost of equity and the cost of debt as part of the W.A.C.C. (weighted average cost of capital) for our target price analysis.

An example of DCF valuation applied to my LinkedIn model.

Please find attached the DCF exercise. The instructions for the exercise are listed on the first tab in the attached Excel spreadsheet. When you have completed the exercise, please watch the next lecture for an explanation of the answers. Thanks

An extremely in depth discussion of the DCF valuation exercise from the previous lesson (part 1 of 2).

An extremely in depth discussion of the DCF valuation exercise from the previous lesson (part 2 of 2).

### Valuation Part 3 of 6: Price to Revenue

This section discusses how we can value companies that don't yet have earnings.

This lecture shows how we can calculate a target price for LinkedIn using a price to revenue target price methodology.

Please find attached the Price / Revenue exercise. The instructions for the exercise are listed on the first tab in the attached Excel spreadsheet. When you have completed the exercise, please watch the next lecture for an explanation of the answers. Thanks

A discussion of the answers to the price to revenue valuation exercise.

### Valuation Part 4 of 6: Price to Earnings & Additional Valuation Methodologies

Why do almost all investors love valuing companies using a price to earnings valuation methodology (growth and value investors)? How can we value companies with different earnings growth rates using price to earnings?

How to pick a target price for LinkedIn using price to earnings.

Please find attached the Price / Earnings valuation exercise. The instructions for the exercise are listed on the first tab in the attached Excel spreadsheet. When you have completed the exercise, please watch the next lecture for an explanation of the answers. Thanks

An in depth explanation of the answers to the price to earnings valuation exercise.

Additional valuation methodologies, including EV/EBITDA, EV/Sales, price to book, cash flow, etc.

### Valuation Part 5 of 6: Final Target Price Calculation & "TAM Sanity Check"

Taking a blended average target price based on several valuation methodologies in order to minimize the valuation margin of error is a smart strategy.

### Valuation Part 6 of 6: Valuation Part 6 of 6 Comparing TAM to the Target Price

Comparing the total addressable market (T.A.M.) that we calculated for LinkedIn with our model forecast results.

### Assessing Financials with Formulas

Analyzing companies using different formula methodologies from these 4 categories: Profitability Formulas, Time Formulas, Comp. (Competition) Formulas and Debt Formulas.

A discussion of the following formulas:

Analyze financial statements using profitability ratios: Gross Margin (Cost of Goods Sold / Revenue), Operating Margin (EBITDA/ Revenue), Net Profit Margin (Net Income / Revenue), Return on Assets (Net Income / Assets) and Return on Equity (Net Income / Equity). Gross Margin (Cost of Goods Sold / Revenue), Operating Margin (EBITDA/ Revenue), Net Profit Margin (Net Income / Revenue), Return on Assets (Net Income / Assets) and Return on Equity (Net Income / Equity).

Analyze financial statements using debt and inventory formulas: Debt to Assets (Total Liabilities/ Total Assets), Debt to Equity (Total Liabilities/ Total Equity), Interest Coverage Ratio (EBITDA / Interest) and Inventory Days on Hand (Inventory / Cost of Good Sold) * 365.

Analyze and compare companies using the following formulas: Price / Earnings, PEG (P/E / Growth), Price / Revenue, EV/EBITDA, EV/Sales, Price/Free Cash Flow and Price / Book.

An exercise using the following formulas to analyze financial statements:

Analyze financial statements using profitability ratios: Gross Margin (Cost of Goods Sold / Revenue), Operating Margin (EBITDA/ Revenue), Net Profit Margin (Net Income / Revenue), Return on Assets (Net Income / Assets) and Return on Equity (Net Income / Equity). Gross Margin (Cost of Goods Sold / Revenue), Operating Margin (EBITDA/ Revenue), Net Profit Margin (Net Income / Revenue), Return on Assets (Net Income / Assets) and Return on Equity (Net Income / Equity).

Analyze financial statements using debt and inventory formulas: Debt to Assets (Total Liabilities/ Total Assets), Debt to Equity (Total Liabilities/ Total Equity), Interest Coverage Ratio (EBITDA / Interest) and Inventory Days on Hand (Inventory / Cost of Good Sold) * 365.

Analyze and compare companies using the following formulas: Price / Earnings, PEG (P/E / Growth), Price / Revenue, EV/EBITDA, EV/Sales, Price/Free Cash Flow and Price / Book.

A discussion of the answers to the formula questions from the previous exercise:

Analyze financial statements using profitability ratios: Gross Margin (Cost of Goods Sold / Revenue), Operating Margin (EBITDA/ Revenue), Net Profit Margin (Net Income / Revenue), Return on Assets (Net Income / Assets) and Return on Equity (Net Income / Equity). Gross Margin (Cost of Goods Sold / Revenue), Operating Margin (EBITDA/ Revenue), Net Profit Margin (Net Income / Revenue), Return on Assets (Net Income / Assets) and Return on Equity (Net Income / Equity).

Analyze financial statements using debt and inventory formulas: Debt to Assets (Total Liabilities/ Total Assets), Debt to Equity (Total Liabilities/ Total Equity), Interest Coverage Ratio (EBITDA / Interest) and Inventory Days on Hand (Inventory / Cost of Good Sold) * 365.

Analyze and compare companies using the following formulas: Price / Earnings, PEG (P/E / Growth), Price / Revenue, EV/EBITDA, EV/Sales, Price/Free Cash Flow and Price / Book.

### Course Conclusion

Congratulations! You now have a good understanding of Accounting, Finance, Modeling, Valuation and Assessing Financials with Formulas! Thanks