THE FULLY REVISED NEW EDITION OF THE BEST-SELLING GUIDE TO USING FINANCIAL MODELS TO DETERMINE IF A STOCK IS OVER OR UNDERVALUED Written by the founder and CEO of the world-renowned New York School of Finance, _Financial Modeling and Valuation_ provides clear and systematic guidance on accurately evaluating the soundness of a stock investment. This invaluable handbook equips investors with the tools necessary for understanding the underlying fundamentals of a rational investment and for making smarter investment decisions in any market environment. Built around an in-depth case study of global retail leader Amazon, this fully updated Second Edition shows you how to analyze the financial standing of a company using the methods of Wall Street professionals. Step-by-step, you will learn to build the core three statements--income statement, cash flow statement, and balance sheet--as well as the three major supporting schedules required for complete company valuation and analysis. All line items are explained in clear language and include real-world tips and techniques for using them as tools for valuing and managing a business. This must-have guide: * Features new and in-depth case studies based on Amazon that simulate real-world modelling and valuation * Explains valuation techniques such as illustrative comparable company analysis, precedent transactions analysis, and discounted cash flow analysis * Covers all essential applications of a model, including pricing a stock, raising debt, and raising equity * Includes an introductory section describing the recent and dramatic shift of the entire retail industry * Provides end-of-chapter questions, downloadable practice models, additional case studies, and common interview questions via a companion website _Financial Modeling and Valuation: A Practical Guide to Investment Banking and Private Equity, Second Edition_ is essential reading for finance professionals, venture capitalists, individual investors, and students in investment banking and related degree programs in finance.