Financial Modeling for Dummies - financial modeling by EduCBA

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For full text article go to : https://www.educorporatebridge.com/financial-modeling/financial-modeling-for-dummies/ This Financial Modeling for Dummies article provides you with a snapshot of the basics of Financial Modeling, its usages from the industry point of view and also discusses steps to build a financial model.

Transcript of Financial Modeling for Dummies - financial modeling by EduCBA

  • 1. Financial Modeling in Excel Financial modeling in Excel is one of the most multipurpose and hot finance skills in todays scenario. Financial models plays vital role in most major business decisions. Financial Modeling is very useful to organizations that allow: Analyze Historical performance of a company Projecting Future financials Evaluating Projects (Using Project finance Modeling) Profitability in investments.

2. What is meant by Financial Modeling? In simple words financial modeling is process of systematic forecasting of company financials. Financial model is prepared by financial analysts, investment bankers, equity research analyst and other finance professionals. Following are some important financial modeling terms Forecasting Assumptions Financial Analysis 3. Some Basic Excel Functions you should know before building a financial model AVERAGE Function - Calculates the average of a set of numbers. COUNT Function - Counts the number of cells that contain numbers. MIN and MAX Function - Calculate the minimum and maximum of a set of values. PRODUCT Function. SUM Function - Adds up a set of numbers. 4. Easy to UnderstandTrustworthyEasy to Follow 5. Uses of Financial Models Project EvaluationValuation (DCF, Relative)Budgeting 6. Uses of Financial Models Merger and AcquisitionStartup Plans Strategy Decision 7. Be a part of edu CBA Family!!! Visit our website https://www.educorporatebridge.com/ For Free Resources https://www.educorporatebridge.com/free-courses/ Like us on Facebook https://www.facebook.com/CorporateBridgeGroupFollow us on Twitter https://twitter.com/corporatebridgeThank You!!!