Course description
Financial modeling is the process of creating a summary of a company's expenses and earnings in the form of a spreadsheet that can be used to calculate the impact of a future event or decision. It is a representation in numbers of a company's operations in the past, present, and the forecasted future. Such models are intended to be used as decision-making tools. Company executives might use them to estimate the costs and project the profits of a proposed new project.
Financial modeling is important for many different reasons – mostly related to making decisions around mergers and acquisitions, raising capital, planning and managing a business, and making investment decisions. In addition to supporting these major decisions.
Upcoming start dates
Upcoming start dates
Suitability - Who should attend?
This Financial Modelling Training Course is ideal for:
- Finance professionals at an intermediate level or above who need to build, interpret, review and audit financial models.
- Professionals in corporate and financial institutions who need to create useful and robust financial models, and wish to raise their financial valuation skills to a superior level.
Outcome / Qualification etc.
By the end of the Financial Modelling Training Course, you will be able to:
- Comprehend the significance of proper formulation and interpretation of models.
- Apply statistical tools such as Exponential Smoothing, Regression, and Seasonality.
- Translate specific business challenges into logically structured mathematical models.
- Get the most from your software investment by creating more powerful models in less time.
- Learn how to use Excel tools such as Solver, Goal Seeker, Scenario, and Spreadsheet Auditor.
- Analyse time series data and develop relationships using exponential smoothing and regression analysis techniques.
- Draw more realistic conclusions from the results of your models.
- Be able to determine product mix to optimize profits.
- Simulate the potential return on new capital investments.
- Project the probability of processes running within budget.
- Develop models to support product pricing and/or product continuance.
- Design budget models for departments, divisions, processes, or other entities.
Training Course Content
Day 1
Introduction and overview of Financial Modelling
- Define the Terms Model and Financial Model.
- Learn the 10 steps to create good Financial Models.
- The 12 steps to Improving traditional Financial Models.
- Use Flowcharting Techniques to improve your model.
Time Value Models
- Comprehend the Time Value of Money.
- Apply Time Value Concepts to Financial Models.
- Learn Why the Weighted Average Cost of Capital (WACC) Is Used in Capital Budgeting Models.
- Use Net Present Value (NPV) and Internal Rate of Return (IRR) Models in Making Capital Expenditure Decisions.
- Use the built-in functions for NPV, IRR, MIRR.
Day 2
Financial Analysis Models
- Use Break-Even Analysis in Financial Models.
- Use Scenario Analysis in Financial Models.
- Use Sensitivity Analysis in Financial Models.
- Compare These Approaches.
- Incorporate Sensitivity Analysis and Scenario Analysis in Financial Models.
Lease v Buy Analysis Models
- Learn the Fundamental Concepts of Leasing.
- Identify the Different Types of Leasing.
- Learn How to Analyse Leasing an Asset vs. Purchasing the Asset.
- Use Financial Models to Make Lease vs. Buy Decisions.
Day 3
Financial Ratio Analysis Models
- Identify Major Financial Ratios.
- Use Financial Ratios to Measure a Firm’s Financial Performance.
- Use “Peer Group” Analysis to Measure a Firm’s Financial Performance.
- Use Financial Ratios Models to Analyse a Firm’s Performance.
Models for Valuation of Stock and Bonds
- Learn How to Apply Dividend Discount Techniques.
- Calculate the “Intrinsic” Value of a Firm’s Common Stock.
- Rationalize the Difference between Intrinsic Value vs. Market Value for a Firm’s Common Stock.
- Learn How to Apply Bond Valuation Techniques.
- Calculate the Price and Yield to Maturity (YTM) of a Bond.
- Construct a Model to Evaluate Potential Bond Investments.
Day 4
Comprehensive Models and Tools
- Using Tools like Solver & Goal Seeker.
- Developing a Financial Optimization Model.
- Identify the Types of Financial Activities That Can Be Connected in a Model.
- Build the Pieces of a “Connected” Model.
- Link the Pieces to Form a Multiple-Part Model.
Day 5
Putting It all Together
- Understand How Models Are Created and Used.
- Deal with Problems in the Development and Use of Financial Models.
- Use Financial Models Effectively.
- Case study
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