Financial Modeling

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Financial Modeling

FINANTIAL Modeling Training With advanced Excel

FINANTIAL Statement Analysis & Equity Valuations:

  • Foundations of Financial Modeling
  • Need for Financial Models
  • What is Financial Modeling
  • Best Practices of EXCEL
  • Understanding of Key Financial Statements (Balance Sheet & Income Statement)
  • Streamlining of the Financial Statements data gathered from Third Party Sources
  • Additional information from Annual Reports

Cash Flow Statements

  • Preparation of cash flow statement from Balance sheet & Income Statement
  • Analysis based on Cash Flow Statements
  • Computation & Interpretation of Cash Flow Ratios

Ratio Analysis

  • Profitability Analysis
  • Efficiency Analysis
  • Liquidity Analysis
  • Common size Analysis
  • DuPont Analysis
  • Altman z-Score
  • Reporting on overall Financial Health
  • Valuation Ratios
  • Working Capital Analysis
  • Observe historical trends
  • Identify determinants of earnings growth
  • Measure financial strength
  • Observe the link between ROE and implied growth

Forecasting Financial Statements

  • Using different functions of EXCEL to forecast
  • Understanding Macro economic variables having impact on Future Financial Statements
  • Impact of GDP, Inflation & other macro economic variables on Equity Market
  • Using Regression to model forecasted Financial Statements
  • Understanding the drivers for forecasting

Understanding of Key Components

  • Depreciation Schedule
  • Debt Schedule
  • Shares Outstanding Schedule

5-Year Financial Statement Projection Model

  • Forecasting of Geographical and Segment based Revenues and Expenses.
  • Forecasting a Company’s Income Statement
  • Forecasting Assets and Liabilities on the Balance Sheet
  • Projection of Shareholders Equity
  • Role of different Financial Ratios during Projection
  • Building an Integrated Cash Flow Statement

Supporting Schedules

  • Integrating Dividend Payments Schedule into the Model
  • Incorporating the Debt Schedule into the Model
  • Incorporating a Detailed Depreciation Schedule

Integration and Balancing of Financial Model

  • Balancing using debt schedule and debt sweep logic
  • Integrating Balance Sheet, Income Statement and the Cash Flow Statement.
  • Using cash flow either to bring down debt or build cash.
  • Integration of Financial Statements using the interest schedule?
  • Circular References in EXCEL and the mode to handle them.

Detailed Business Segment Build-Up

  • Understanding the growth Drivers and projecting the key drivers of growth.
  • In-depth growth analysis on the Historical Data.
  • Project future detailed growth assumptions that roll up into larger projection model
  • Digging into deeper layers of growth drivers

Operating & Division Segment Build-Up

  • Calculate and analyze different operating segments
  • Adjust for extraordinary items by segment based on MD&A and disclosed footnotes
  • Project future revenue and segment income and allocate for corporate overhead
  • Estimate projected COGS and SG&A on the entire base
  • Further enhance model via sensitivity & scenario modeling and analysis

Sensitivity Analysis and Multiple Cases

  • Sensitivity analysis to incorporate various assumptions and cases
  • Build multiple scenarios and cases, including Base Case, Optimistic & Pessimistic Cases
  • Sensitize profitability and cash flow of model based on various case assumptions

Enhancements to Core Integrated Financial Model

  • Build a stand-alone depreciation schedule to better estimate working capital changes and free cash flow by depreciating existing PPE as well as new capital expenditures
  • Allocate accumulated depreciation correctly
  • Depreciate existing Net PPE and new CapEx based on weighted average life
  • Create quick financial summary exhibit that summarizes key figures from financial model
  • Residual value and EVA analysis

Different Concepts of Valuation


  • Discounted Cash Flow based Valuation
  • Relative Valuation
  • Residual Based Valuation
  • Calculation of Cost of Equity & Cost of Capital
  • Sustainable growth rate
  • Terminal value and its importance.

Discounted Cash Flow Techniques

  • Understanding Dividend Patterns
  • Dividend Discounting Model
  • Calculation & Interpretation of Terminal Value
  • Computation of Free Cash Flow to Equity & Free Cash Flow to Firm
  • Valuation using FCFF & FCFE approached
  • Normalization of Earnings
  • Enterprise Value calculation

Relative Valuation Techniques

  • Understanding key valuation ratios like P/E, P/BV, P/S, P/CF and importance of each
  • Computation of each of those ratios dynamically (Leading & Trailing)
  • Using the ratios to forecast the value of the Equity/Firm
  • Understanding PEG & Dividend Yield

Residual Valuation Techniques

  • Understanding the concept of Residuals
  • Benefits of Residual Valuation Models
  • Calculating residuals like EVA & MVA
  • Valuation based on Residuals

Sensitivity Analysis

  • Using Advanced EXCEL Tools like Data Table & Goal Seek
  • Using Monte-Carlo simulation to forecast sales and do a sensitivity Analysis

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