Series 86 study plan
Series 86 · Give each week a clear focus.
8 weeks · About 8 hours per week
Valuation and Forecasting
Inventory the F3 topic list and rate each item 1-5 on confidence to build a prioritized gap list
Rebuild a three-statement model from a public company's three most recent annual filings
Trace the linkages among income statement, cash flow statement, and balance sheet and insert a balance check cell
Derive historical FCFF and FCFE for two companies and reconcile the two figures
Your checkpoint
Completed 3-year historical three-statement model whose balance check cell equals zero, plus a written confidence gap list of F3 topics
Valuation and Forecasting
Estimate WACC from scratch, including CAPM cost of equity and after-tax cost of debt
Build a five-year unlevered free cash flow forecast driven by explicit operating assumptions
Compute terminal value using both a perpetuity growth method and an exit multiple, then reconcile the difference
Construct a two-way sensitivity grid on discount rate and terminal growth rate
Your checkpoint
A DCF model that outputs an implied share price along with a sensitivity table spanning at least five discount rates and five growth rates
Valuation and Forecasting
Define and justify a peer set selection screen and apply it to identify at least five comparables
Calculate EV/EBITDA, P/E, EV/Sales, and P/B for the peer set and adjust for nonrecurring items
Bridge enterprise value to equity value and identify each adjustment line in the bridge
Contrast the DCF output against the multiples-implied range and write an explanation of the divergence
Your checkpoint
A comparable company analysis workbook with a football-field chart plotting DCF, trading comps, and at least one additional method
Analysis, Modeling and Valuation & Valuation and Forecasting
Recast a company's financials to separate recurring from one-time items and capitalize operating lease obligations
Compute and interpret a full ratio set covering margins, turnover, leverage, and returns on capital
Assess how inventory, revenue recognition, and capitalization choices distort comparability across peers
Translate the ratio findings into explicit forecast assumptions for the valuation model
Your checkpoint
A two-page written financial analysis that ties each conclusion to a specific model assumption, plus a score of at least 75% on a 60-question mixed F2/F3 question set
Analysis, Modeling and Valuation
Build base, bull, and bear pro forma projections with a toggle switch between scenarios
Document every forecast driver and its rationale in an assumption log
Apply at least two forecasting techniques and compare their projected growth against historical and industry benchmarks
Stress-test model outputs for implausible margins, growth, or capital intensity
Your checkpoint
A three-scenario model with a working toggle and a complete assumption log covering 100% of forecast inputs
Analysis, Modeling and Valuation & Information and Data Collection
Classify each model input as primary or secondary source and rate its reliability
Size a target market using a structured industry analysis and document the derivation
Map data lineage for every forecast input back to its originating filing or dataset
Identify survivorship, restatement, and look-ahead biases in a sample dataset and describe the correction
Your checkpoint
A data appendix listing every model input with its source, retrieval date, and reliability rating, plus a written bias-audit note
Information and Data Collection & Valuation and Forecasting
Apply research report content and disclosure standards to a draft write-up and correct all deficiencies
Practice time-boxed data gathering exercises to build speed under exam conditions
Rebuild from a blank sheet the three weakest F3 topics identified in week 1
Complete a full-length timed mock exam and tabulate results by domain and subtopic
Your checkpoint
Mock exam #1 completed under time with a domain-by-domain score breakdown and a ranked remediation list
Valuation and Forecasting & Analysis, Modeling and Valuation & Information and Data Collection
Complete two additional full-length timed mock exams and log every miss with its root cause
Drill only the subtopics that scored below 70% on prior mocks until each clears threshold
Reconstruct the full formula sheet from memory and verify it against source notes
Rehearse valuation and forecasting workflows end to end without notes
Your checkpoint
Mock exam #2 scoring at least 80% overall with no single domain below 70%
Milestones
Week 2: DCF model produces an implied value per share and the sensitivity grid shows a monotonic relationship between discount rate and value
Week 4: Score of 75% or higher on the cumulative 60-question F2/F3 set and a three-statement model that still balances after recasting
Week 6: Every forecast input in the model is traceable to a rated source with no undated or unclassified entries
Week 8: Two full-length timed mocks completed, most recent at 80% or higher overall with all three domains at or above 70%