FINANCIAL MODELLING
                     Finominal 
Education
FINANCIAL 
MODELLIN
GTo com bine accounting, finance, and business metrics to create an abstract representation of a company in EXCEL, forecasted into the future. 
What is 
Financial 
MA finoancidal emodleli nis bgasi?cally a device that is 
underlying Excel to conjecture a business' monetary 
presentation into the future. The forecast is ordinarily 
founded on the organization's verifiable execution, 
and presumptions about the future, and requires 
setting up a pay explanation, monetary record, 
income proclamation, and supporting timetables 
(known as a 3-explanation model). From that point, 
further developed kinds of models can be constructed 
like limited income investigation (DCF model), utilized 
buyout (LBO), consolidations and acquisitions (M&A), 
and awareness examination
• It is an activity of preparing any entity’s future 
financial statement 
• These future financial statements are known as 
financial models 
• Show a prediction about the future financial 
performance of a company 
finominal •
Education Income statement: show the sales from our 
business minus the costs, leaving us with the 
profits. 
What do we • To anticipate the future, and make change • To analyze new opportunities • To raise new investment capital (for 
use them for? unprofitable growth business ).• Future operational performance 
⚬ no. of employees required to hire 
⚬ breakeven unit 
• Future financial performance 
⚬ Estimation of revenue 
⚬ Estimation of profits 
• Capital expenditure to be incurred 
⚬ Estimation of cost of the project 
• Funds required to fulfill future obligations 
• working capital financing 
• equity financing      
• Cash flow / free cash flow generated 
⚬ free cash flows to the firm
⚬ free cash flow to the equality 
• Enterprise value or equity value 
• Analyzing certain ratios 
⚬ profitability ratios 
⚬ liquidity ratios 
• Analyzing trends of a business 
⚬ upward growth, static growth, 
downward growth, no growth, and 
Finominal  Education negative growth.⚬ 02/12performing scenarios /stress analysis 
Steps to create 
a Financial 
Model 
Components of a financial model (income statement )
• Step 1: building the revenue plan
  Need: products, orders, prices, new vs returning 
customers.
• Step 2: Building the cost of sale 
   Need: costs directly related to delivering the 
product.
      
• Step 3: operating expenses 
  Need: all fixed costs of the business.
• Step 4: calculating profit margin 
  Need: gross profit, operating profit, net profit.  
Financial 
Modelling
ANOTHER 
WAY 
• Input historical financial 
information into excel 
• Determine the assumption that 
will drive the forecast.
• Forecast the income statement 
• Forecast capital assets 
• Forecast capital structure 
• Forecast the balance sheet 
• Complete the cash flow 
statement 
• Prepare output sheet 
Finominal 
Education
TYPES OF 
FINANCIAL 
MODELS 
• Three statement model 
• Merger model 
• DCF (DISCOUNT CASH FLOW MODEL 
) model
• Sum of parts models 
• Leveraged buyout model 
• Comparable company analysis 
• Initial public offering model 
• Option pricing model
Finominal 
Education
JOBS AFTER 
LEARNING 
TFheIrNe is Aa wNide CrangIeA of Lsor ts of experts that 
MformO finaDnciaEl mLodLelsI. NThe Gmos t normal kinds of 
professional tracks are
• Corporate finance 
• Investment banking 
• Equity research 
• Management consultancy, portfolio 
management firms 
• Private equity funds, hedge funds, venture 
capital funds 
• Transaction advisory firms 
• Commercial banks / non-banking finance 
companies 
• Financial due diligence firms 
• Research and outsourcing companies 
Finominal 
Educartion
 What You Will 
Learn In Financial • Succeed alternate routes and works as often as possible utilized in 
Modeling financial modeling• Succeed in settings and arranging 
best practices for financial 
modeling
• Creating model plugs via the 
revolver and cash sweep
• Dealing with circularities in the 
model
• Building a completely incorporated 
3-explanation model utilizing laid 
out determining and plan shows 
scheduled conventions.
• Balancing the model and inserting 
automated checks
• Perform sensitivity & scenario 
analysis
• Instructions to productively look at 
Finominal 
Education models for blunders, precision, and 
respectability
Constructing An 
Income 
Statement And 
Balance Sheet
Toward the finish of this module, you will 
have a strong comprehension of how to 
develop an income statement and balance 
sheet:
• Explain the format of the income 
statement and balance sheet
• Define various financial statement 
terms (e.g. accounts receivable, 
prepayments, etc.)
• Record financial statement 
transactions (e.g. invoicing, raising 
equity, buying inventory, etc.)
• Prepare a balance sheet and simple 
Finominal 
incEodmucea tsiotnatement
Constructing A 
Cash Flow 
Statement
We investigate the design of the income 
explanation, make sense of the distinctions 
between the cash flow statement and the pay 
explanation, and prepare a cash flow 
statement from scratch. Toward the finish of 
this module, you will have a strong 
comprehension of how to develop an income 
explanation:
• Frame the organization of the income 
articulation
• Explain the difference between profit and 
cash
• Set up a straightforward income 
fipnroomcinlaamledautciaotnio nu.ctilizing the balance sheet 04/12
om
and income statement
Financial 
Mathematics 
Course
This module course shows the way that various financial 
mathematics formulas can be utilized to conduct a detailed 
analysis of a bunch of information or potential factors.
• Time value of money
• Bond pricing and yields
• Statistics & financial mathematics
finominaleducation.co
m
Advantages Of Joining 
Finominal Education For 
Financial Education 
This module course shows the way 
that various financial mathematics 
formulas can be utilized to conduct a 
detailed analysis of a bunch of 
information or potential factors. These 
FINANCIAL EXAMS  Training courses 
with an excellent opportunity to equip 
exceptionally well for the FINANCIAL 
EXAMS and pass the exam in your first 
attempt. To know more call or 
WhatsApp us on 9650353883. 
Finominal Education is an ideal 
platform to acquire financial skill. Our 
knowledgeable resources furnish the 
hopefuls with a sound and serious 
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om information to acquire execution 
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