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FINANCIAL MODELLING

 
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Course on Fundamental Analysis for Students
Course on Fundamental Analysis for Investor
Course on Technical Analysis for Students
Course on Technical Analysis for Investor
 
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Stock analysis requires careful examination of all the available facts and their implications. For effective analysis, the first step is to put all these facts on a spreadsheet in a systematic way and then analyze them. Often analysts fail to make sense out of these facts only because they were not arranged and analyzed systematically. Financial modeling is all about representing relevant financial data on a spreadsheet and detailed analysis of that data, so as to forecast correctly how the financials of a company will appear years down the line. We offer a short term module that helps participants to master the tricky world of financial modeling.

We do not “teach” our participants how to use Excel. Instead, we build a mindset on how to be methodical while analyzing data. Spreadsheet models work on the concept of GIGO (Garbage In Garbage Out). So one must have a clear mindset while building a model, as one faulty input will lead to a wrong output even if the other inputs are correct. Our approach is based on first making the participant understand the objective of Financial Modeling, and then building a framework to guide the participant in the modeling process. Then we help participants construct his own models by hand-holding them, so that the learning is complete. We also include valuation modeling, in which the participant learns how to build models to value the stock of any company using all the parameters like P/E, P/BV, DCF etc.

Key Content

Financial modeling – objectives and methodology
Good financial models can be constructed only by keeping the end objective in mind. We prepare the mental framework required for building a model, which would guide the participants throughout the process of modeling.

Excel in modeling
We explain the importance of excel as a modeling tool. We teach our participants on how to use Excel which is pertinent for financial and valuation modeling, including referencing and some basic functions.

Historical data logging
When it comes to modeling a company’s financials, often the future depends on the past. It is mission critical to have a proper model for the past data, as that will determine the effectiveness and accuracy of the model

Revenue modeling and projection
Understanding and projecting revenues is the first and the most crucial step in modeling, for which we devote special attention. Participants are made aware of the different methods of revenue modeling and suitability of different types of model in different situations.

Profit and profit margin modeling projection
Having a good revenue model is not sufficient unless it is backed by the remaining part of the profit and loss statement. We teach our participants on how to model operating and non-operating costs.

Balance sheet modeling and projection
In this, participants prepare a coherent model of the company’s balance sheet, so that anyone can analyze and project the assets and liabilities of the company in a coherent way.

Preparing Cash Flow Statement model and projection
Cash flow is often the most neglected financial statement, but often the most powerful one. Through cash flow statement modeling, a potential analyst can truly understand the cash position of the company, its cash inflows and outflows. Cash flow projection also helps in decision making regarding the investment.

Valuation modeling
Valuation modeling is the logical extension of financial modeling. We train our participants on how to use spreadsheet programs to model the valuation parameters so that various modeling tools may be successfully applied.

   
 
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