What is financial modeling?

Financial modeling is a quantitative analysis that is used to make a decision or a forecast about a project generally in asset pricing model or corporate finance. Different hypothetical variables are used in a formula to ascertain what the future holds for a particular industry or for a particular project.

In simple terms, financial modeling means forecasting companies’ financial statements like Balance Sheets, Cash Flows, and Income statements. These forecasts are in turn used for company valuations and financial analysis. Financial modeling is useful because it helps companies and individuals make better decisions.

Financial modeling is not confined to only a company’s financial affairs. It can be used in any area of any department and even in individual cases.

Valuation is the process of determining the current worth of an asset or a company; there are many techniques used to determine value. An analyst placing a value on a company looks at the company’s management, the composition of its capital structure, the prospect of future earnings, and the market value of assets.

Financial Modeling course is a skill based course offered by various institutes

The minimum requirement of this course is that the participant should have some working knowledge about cash flow models, balance sheets and finance. The topics covered are valuation case study, mergers & acquisitions, macros, project finance, etc.

Once you have completed the course, you can become eligible for jobs like Investment banking, Project management, Equity research, Business planning & strategy, Private equity funds or commercial banking. To know more about the course, please leave us a remark and we shall respond with exact answer for you queries.