Corporate Model of Amazon and Cement to Demonstrate A-Z Modelling

If you are looking for a simple corporate model that goes from A-Z and includes history, you can try and look at the Amazon or the Saudi Cement Model for examples. A big deal in corporate modelling is acquiring financial data and making a model flexible enough to incorporate updated historic data.

The Amazon model gets data from the financial database.  It starts with ROIC and growth and derives the cash flows and values from these inputs.  This is a little backwards from the way a typical model works but it demonstrates the key drivers.

This model gathers financial data from the Saudi Stock Market page called TAWDAUL. The idea is that you should be able to get your data, easily connect it to the prior history, change the last historic data, change assumptions from the history and then quickly have a new model with new updated data. Two examples are include below that you can download by pressing the buttons.

Amazon Model Example for Valuation

The Amazon model demonstrates where you can find data and the drivers of model. The model that demonstrates these ideas can be downloaded by pressing the button below.

Financial Model the Starts with ROIC and Growth over Different Periods with Interpolate and Derivation of Cash Flow

 

Some of the aspects of this model are illustrated below.

 

 

 

 

 

 

 

 

 

 

Cement Financial Model

Corporate Model of LaFarge as Illustration of Model with Historic Analysis used to Develop Assumptions

Corporate Model of Saudi Cement Company Using Data that Can Be Updataed from TADWAL Website

I have included another simple example of a construction company in this section that illustrates very similar ideas. The models work all the way through the balance sheet and first develop operating cash flows. The separation between operating cash flow and financing cash flow is important and it is important to set-up accounts that keep track of debt and cash balances. The cash and debt accounts find the changes in cash flows from the cash flows.

Corporate Model of Construction Company Demonstrating Model Structure and Valuation Issues

This Saudi Cement model and the construction company model also demonstrates how you can make presentations of historic and projected financial statements and incorporate scenario analysis into a corporate model. The model contains graphs that show all of the items on a three statement model for both historic and projected levels. The scenario analysis is set-up with sensitivity analysis so that you can make a tornado diagram and see which variable has the biggest effects on the valuation of the company.

A video describing the Saudi Cement model is included in the table at the bottom of this page.

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