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Financial Modeling
Discover how to evaluate and maintain different financial modelsPreview the first lesson free — get full access to all 7 lessons.
Intermediate Provider : Silvina Asurmendi 7 Lessons · 26m in Arabic, German, English, Spanish, French, Portuguese, Chinese
Course Description
This course covers three-statement financial modeling, a powerful tool used by businesses and financial analysts to project and analyze a company's financial performance. You’ll learn about valuation models, which estimate the intrinsic value of an asset, such as a stock, company, or project. One widely used approach is the discounted cash flow, or DCF, investment model, which estimates the value of organizations based on their projected cash flows and terminal values. Building accurate models for financial forecasting is essential, but it’s also important to regularly evaluate and maintain these models to ensure they stay accurate and relevant. Financial forecasting models are subject to constant changes from external factors in the market and regulatory environment. Failing to update and maintain models can lead to unreliable predictions and flawed decision-making.
In this Financial Modeling course, you’ll learn about some key models that businesses use to evaluate their profitability, liquidity, and financial health. We’ll cover three-statement financial modeling, valuation models, comparable models, and asset-based approaches. You’ll also learn about banking models, top-down and bottom-up models, and corkscrews, waterfalls, and toggles. We’ll cover modeling outputs and stress testing your model to help you evaluate and maintain it.
What You'll Learn
- Explain the fundamental steps of three-statement financial modeling
- Recognize how DCF investment models use discount rates and terminal values to estimate value
- Identify banking models, corkscrews, waterfalls, and toggles
- Apply best practices for evaluating and maintaining financial models
- Compare valuation models, comparable models, and asset-based approaches
- Stress test models and interpret modeling outputs
Key Takeaways
- Three-statement financial modeling is a tool used by businesses and financial analysts to project and analyze a company's financial performance.
- Valuation models estimate the intrinsic value of an asset such as a stock, company, or project.
- The discounted cash flow (DCF) investment model estimates the value of organizations based on their projected cash flows and terminal values.
- Financial forecasting models are subject to constant changes from external factors in the market and regulatory environment, so failing to update them can lead to unreliable predictions and flawed decision-making.
- Businesses use models such as three-statement, valuation, comparable, and asset-based approaches to evaluate their profitability, liquidity, and financial health.
Frequently Asked Questions
What topics does this Financial Modeling course cover?
It covers three-statement financial modeling, valuation models, comparable models, and asset-based approaches, as well as banking models, top-down and bottom-up models, corkscrews, waterfalls, and toggles, plus modeling outputs and stress testing your model.
What is the DCF model taught in this course?
The discounted cash flow (DCF) investment model is a widely used valuation approach that estimates the value of organizations based on their projected cash flows and terminal values.
Why does the course emphasize maintaining financial models?
Because financial forecasting models are subject to constant changes from market and regulatory factors, and failing to update and maintain them can lead to unreliable predictions and flawed decision-making.
What skills will I gain from this course?
You will build skills in financial modeling, sensitivity analysis, and valuation models.
How is the course structured?
The course includes lessons on Three-Statement Financial Modeling, DCF Investment Models (Parts 1 and 2), Banking and Buyout Models, and Evaluating and Maintaining Models, along with an introduction and a Test Your Knowledge section.
