Financial Modeling in Excel – Build Valuation Model of Apple

Financial models play a vital role in most major business decisions. Generally, a company prepares an economic model whenever it plans to expand its business, evaluating a particular project (also called project finance modeling), Merger or acquisition of a specific (target) company, and future forecasting of financials. For startup companies, preparing a financial model is essential for further business planning, and for big organizations plays a vital role in long-term planning, expansion, development, cost planning, etc. Commonly, companies prepare financial models in Excel spreadsheets. In simple terms, financial modeling is a tool that is created to serve the specific interest of a firm. The financial model can be built to serve the clients of a firm or in some cases to predict the future of an organization.

Financial analysts only need to use or create the financial model that is most suited for the purpose they’re creating the model for. A financial analyst may want to look at a firm and wants to see the total value of the firm. In this case, she would use the discounted cash flow method to find out the total value of the firm. On the other hand, a financial analyst may want to use a financial model to manage the investment of a client using the Sortino ratio.

No matter what’s the purpose, to build the financial model, one needs clarity, historical information, and technical expertise. And for that you need a module, a course or a mentor to guide you, to teach you, and to help you understand the nitty-gritty of the complex financial modeling.

That’s why we designed this course for you. Read on and you would see why you must do this particular course if you want to get good at creating complex financial models.

Financial modeling is the process of systematic forecasting of company financials. Financial analysts, investment bankers, equity research analysts, and other finance professionals prepare a financial model. There is some basic financial modeling In Excel terms that you need to understand.

Forecasting– Forecasting means the company’s expected financial position in the future.

Assumptions – To build a financial model, you must make hypothetical assumptions. Now, what does it mean? Assumptions present a condition that is not necessarily expected to occur but is consistent with the purpose of the projection.

Financial statement Analysis – Financial Analysis means the analysis of financial statements like income statements, Balance sheets, and Cash Flow Statements using various techniques.

Financial Modeling In Excel – if you are new to accounting, you may want to learn the basics of accounting, without which you will not be able to progress in Financial Modeling In Excel