#BinancePizza

represents a significant enhancement of the tool over the previous

spreadsheet-based version. This comprehensive modeling tool implements the

analytical framework and techniques discussed in this book, and allows students to

easily import the financial statements of a company into the model from three

major data providers—Thomson ONE, Capital IQ, and the Compustat database of

the Wharton Research Data Services—as well as to import manually created statements. A user-friendly interface allows the analyst to navigate through the tool

with ease. The tool facilitates the following activities: (1) recasting the reported

financial statements in a standard format for analysis; (2) performing accounting

analysis as discussed in Chapters 3 and 4, making desired accounting adjustments,

and producing restated financials; (3) computing ratios and free cash flows as

presented in Chapter 5; (4) producing forecasted income, balance sheet, and cash

flow statements for as many as 15 years into the future using the approach discussed in Chapter 6; (5) preparing a terminal value forecast using the abnormal

earnings, the abnormal returns, and discounted cash flow methods as discussed in

Chapters 7 and 8; and (6) valuing a company (either assets or equity) from these

forecasts as also discussed in Chapters 7 and 8. We have seen that the BAV

modeling tool can make it significantly easier for students to apply the fram