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Erudite AfricaCenter of Excellence

← Erudite Africa Center of ExcellenceCapital MarketSchool of Investment BankingFoundational to Advanced

Financial Modeling and Company Valuation

Build three-statement models and value Ethiopian companies with DCF and multiples, through inflation, birr depreciation, scarce comparables and high country risk

Follow one fictional Ethiopian bottler from audited IFRS accounts to a linked model, a DCF and multiples valuation, birr and USD scenarios after the 2024 float, and an ESX offer recommendation, then value banks and take the first steps into merger models and simulation.

Start the course

0 of 5 modules completed

What you will be able to do

  • Build a linked three-statement model from historical IFRS accounts to a professional layout standard
  • Forecast revenue, costs, working capital and capex with clear, sourced assumptions
  • Perform DCF and multiples valuations and bridge enterprise value to value per share
  • Build flexible, scenario-driven models in birr and USD with consistent inflation and FX logic
  • Estimate an Ethiopian cost of capital defensibly, with country risk, currency, size and illiquidity premiums
  • Value financial institutions and produce a valuation report with sensitivities and scenarios
  • Explain merger accretion and dilution, Monte Carlo simulation and independent model review
For
Analysts in investment banks, banks' corporate finance units, private equity funds, ECMA and large corporates (foundational modules); analysts with modeling experience and associates (intermediate modules); senior associates and vice presidents (advanced lessons). Learners need accounting and Excel; course 2.c Level 1 is recommended.
Study time
About 6 hours online, in 5 modules (104 hours in the classroom version)
Each module
Short lessons, animated visuals, Ethiopian examples, decisions to make, the laws and directives that apply and worked calculations, then a quiz
Assessment
A 20-question final exam; pass mark 70%
Certificate
Erudite Africa Center of Excellence certificate of completion
Access
Module 1 free for registered users; the full course, exam and certificate for subscribers

The 5 modules

  1. Module 01Free previewModel foundations and the three statementsSet up a clean, auditable spreadsheet and link the income statement, balance sheet and cash flow statement from Ethiopian IFRS accounts.6 lessons · 60 min · quiz
  2. Module 02Historical analysis and forecastingRead the past with ratios and normalized earnings, then forecast revenue, costs, working capital, capex, tax and debt from clear drivers.6 lessons · 65 min · quiz
  3. Module 03DCF and multiples valuationValue a company from its free cash flow, a cost of capital and a terminal value, bridge to equity per share, and cross-check with P/E, EV/EBITDA and P/B when Ethiopian comparables are scarce.6 lessons · 65 min · quiz
  4. Module 04Scenarios, inflation, FX and the Ethiopian cost of capitalBuild flexible scenario-driven models in birr and USD, keep inflation, exchange rates and WACC consistent after the 2024 float, and defend an Ethiopian cost of capital.6 lessons · 70 min · quiz
  5. Module 05Banks, special situations, reporting and advanced modelsValue banks and insurers within capital rules, handle minority, control and privatization questions, present a valuation report, and take the first steps into merger models, simulation and model review.7 lessons · 70 min · quiz
  6. Officer simulationA month as valuation analyst at Bank A CapitalWork as valuation analyst, corporate finance: 11 real-life items, decisions with consequences and a hand-over note. Pass with 70% to qualify for the certificate.
  7. Final examFinal exam and certificate20 applied questions across all 5 modules. Pass with 70% to download your certificate.

Built on

  • Erudite Africa training module: Ethiopian Context, topic 3.a Financial Modeling and Company Valuation, Levels 1 and 2 and the Level 3 outline (October 2026)
  • Erudite Africa Training Module: Ethiopian Context, programme overview and regulatory register (October 2026)
  • Income Tax Proclamation No. 979/2016 as amended by Proclamation No. 1395/2025; Value Added Tax Proclamation No. 1341/2024; Financial Reporting Proclamation No. 847/2014 (status to confirm)
  • NBE directives as listed in the lessons: FXD/01/2024, FXD/04/2026, SBB/95/2025, SBB/78/2021 (reported); NBE Monetary Policy Committee release No. 7 (July 2026)
  • ECMA public offer directive (reported as No. 1030/2024) and the ESX Rulebook (December 2024)
  • The FAST modeling standard and IFRS (IAS 16, IAS 29, IFRS 16) as general professional references

Examples and companies are fictional. Bank practices are shown as typical Ethiopian practice, not as any one bank's policy. Always apply your own institution's approved policy and the current NBE directives.