Financial Modeling

The workshop will cover the following:

Best Practices In financial Modeling
  • Structure your model using separate tabs for inputs, calculations, and outputs
  • Build the foundations of your model by determining the objectives, the flow of information, and by defining outputs, inputs  and variables
  • Validate and avoid misinterpretation through documentation
  • Looks matter! Learn cell formatting techniques to lighten up your model: naming cells, color coding, and conditional formatting
  • Make your model more user friendly through consistency, clarity, and simplicity
  • Secure your model and make it easier to navigate its content by hiding and un-hiding tabs
  • Build in functionality in your model through advanced formulas: LOOKUP functions, project evaluation formulas, and useful functions
  • Use powerful Excel tools to make your model easier to create: PivotTables, arrays and buttons, Drop Down boxes, Goal Seek and Scenario Analysis
Valuation Techniques
  • Time value of money
  • Absolute and relative valuation techniques
  • Enterprise and equity value
  • Weighted Average Cost of Capital
  • Discount Cash Flow model
  • Terminal cash flows, growth and terminal values
  • Financing options and debt instruments
Building your Model
  • Set up the financial statements, starting with the income statement, followed by the balance sheet and the cash flow statement
  • Forecast the income statement based on cost drivers, revenue drivers, assets, CAPEX and depreciation forecasts
  • Forecast the balance sheet based on drivers for balance sheet items, the working capital, assets, loans, cash, and retained earnings
  • Forecast the cash flow statement by forecasting the cash flow from operating activities, the cash flow from investing activities, and the cash flow from financing activities.