Chapter 1: The Income Statement

Note: These are my notes from the book & guide “2nd ed. Financial Modeling and Valuation: A Practical guide to Investment Banking and Private Equity” by Paul Pignataro as well as my professors notes, excel practice files, diagrams for the steps in a 3-statement model and valuation reasoning. The purpose of this is to understand the valuation process more in-depth as well as understanding how to efficiently and confidently build these models in case of a possible interest in, well, IB or PE, lol.

Also, this won’t be me just restating the concepts verbatim; I will be working through reasoning, as well as connecting it to concepts I think of (related) right away. Reasoning and understanding with Artificial Intelligence, I will be coming up with my own understanding of these principles, and how I will use them for valuation understanding. I will be color coordinating to represent changes, new knowledge gained, etc.