Learning Objective
- Provide a comprehensive introduction to fully integrated financial statement forecasting and valuation models.
Abstract
This case uses discount retailer Five Below as the setting for an Excel-based financial statement forecasting and valuation exercise. It requires students to connect several skills that are often taught separately: forecasting the income statement, forecasting the balance sheet, constructing the cash flow statement from those forecasts, and using the resulting model to estimate intrinsic value. Modeling assumptions are provided so that students can focus on the mechanics of building internally consistent forecast and valuation models rather than on developing the assumptions themselves. A key takeaway is that valuation is only as reliable as the forecast model that supports it.
Appropriate for the Following Course(s)
Financial statement analysis;, Valuation
*TEACHING NOTES AND SUPPLEMENTAL MATERIALS ARE ONLY AVAILABLE TO EDUCATORS WHO HOLD TEACHING POSITIONS AT ACADEMIC INSTITUTIONS.