Ratio and Cash Flow Analysis for Procter and Gamble using eVal Model

Using eVal for Financial Forecasts and Valuations

Task:

This is a Ratio and Cash flow analysis for current and prior years using eVal model. The company chosen is Procter and Gamble and we are assuming 2018 is the current year.

The excel eVal model will be submitted with the assignment also. Please read and follow all instructions using some or all of the suggested websites when doing your research. We are using APA 7 style. Sadly I am dealing with a family emergency (death) and do not have the time to devote to at least the first part of this assignment. Your help will be greatly appreciated.

This tutorial was written by student users as a supplemental guide for using eVal to create financial forecasts and valuations.

The tutorial is not intended to instruct users how to analyze these forecasts, or which variables to use.  It is intended to help guide you through the steps of utilizing all of the features available in eVal so that users can make forecasts and valuations based on reasonable assumptions.

The tutorial is organized to correspond with the tabs in eVal.  So, if help is needed with forecasting assumptions in eVal, simply click on the forecasting assumptions tab in the tutorial to find help.

The first step required to begin working with eVal is to input a company’s historical data.

To do this, click on the “Input Historical Data” tab.  Once this is done, a box with three options will pop up.  The three choices are explained below:

1. Import Core Data – This is the input option that is going to be used 99.9% of the time, as it is the easiest method possible.

If this method of inputting data is selected, the user will be taken to a screen that lists thousands of publicly traded companies.  eVal comes with a list of these companies including the ticker symbols, the industry, sectors, as well as a list of the recent financial statements and news.

To import the data, the user must enter the ticker symbol of the company that is to be researched in the text box, and click “go.”  If the ticker symbol of the company is now known, either type the name of the company into the text box and click search, or search for the company’s name in the list manually.  All companies are listed in alphabetical order.

2. Import Data From A Saved File – This option should ONLY be used if desired historical data are not already programmed into eVal, and may only be used if historical financial data is already saved in one of the following formats:
1. Data from Thompson Research (Global Access)
2. Data from WRDS
3. Data from Compustat template
4. Data from Market Guide template

After selecting the option of the desired format to import the information, the user will be asked to select the input file from somewhere on the hard drive, and once the user clicks “okay”, the information will be imported into eVal.

3. Input Data Manually – This option will be used if the company’s data are not available in eVal.  After choosing to input data manually, the user will be given two options which are presented below:

A. Manually enter data for two or more historical years.  This option will be by far the most tedious method of importing financial data, as the user will have to manually enter all of the historical financial data for the company. 
Note: The user must enter AT LEAST two years of historical financial information for eVal to make useful forecasts.

B. Move existing data back one year and manually enter data for the most recent year.  This option will be used once new financial information not already programmed into eVal becomes public.

Note: The account balances eVal chooses to use may not be the same as the account balances or names in the company’s actual financial statements.  It is important to look at how eVal allocated past years’ data when deciding which dollar amounts should be placed in which accounts.  Example: Some companies separate marketing costs from administrative costs.  eVal puts these two accounts together, so the user must be aware of that and combine the two different accounts on the company’s balance sheet into one when inputting the data into eVal.