Financial Modelling and Asset Valuation with Excel

Finance is Excel! This book takes you straight into the fascinating world of Excel, the powerful tool for number crunching. In clear language it amalgamates financial theory with Excel, providing you with the skills you need to build financial models for private or professional use. A comprehensive knowledge of modelling in Excel is becoming increasingly important in a competitive labour market.

The chapters in Part I start with the most basic Excel topics such as cell addresses, workbooks and basic formulas. These chapters get more advanced through Part I, and take you in the end to topics such as array formulas, data tables and pivot tables. The other parts of the book discuss a variety of subjects such as net present value, internal rate of return, risk, portfolio theory, CAPM, VaR, project valuation, asset valuation, firm valuation, loan, leasing, stocks, bonds, options, simulation and sensitivity analysis.

The book is purposefully easy to understand. Thus it should be suitable both as a reference book and as a textbook for college/university courses such as “Introduction to Finance and Investment Analysis” and “Financial Modelling with Excel”. All subjects are illustrated by examples and accompanying spreadsheets. At the end of each chapter you will find a variety of problems. Spreadsheet solutions for all examples and problems are available on the book’s home page at www.routledge.com.

The book should be helpful for both professionals and students that want to improve their knowledge in finance and investment analysis and at the same time develop skills in building Excel models.

Morten Helbæk is Associate Professor at North-Trøndelag University College, Norway.

Ragnar Løvaas is Research and Development Engineer at Nortroll AS, Norway.

Jon Mjølhus is Senior Lecturer at Buskerud University College, Norway, and Economist at ODIN Forvaltning, one of Norway’s largest asset managers.