Course description
Financial modelling is the method performed to build a financial representation of a company. Financial analyst forecasts future earnings and performance of the company using these financial models. The analysts use numerous forecast theories and valuations provided by financial modelling through these financial models to recreate business operations. Financial models once completed, display a mathematical depiction of the business events. The primary tool utilized to create the financial model is the excel spreadsheet.
Financial modelling is the task of building an abstract representation, called financial models, of a real-world financial situation. It is a mathematical model constructed to denote a simplified version of the performance of a financial asset or portfolio of a business, project, or any other investment.
Business and Financial Modeling training course is designed to help you make informed business and financial decisions.
The course will introduce you to spreadsheet models, modelling techniques, and common applications for investment analysis, company valuation, forecasting, and more. When you complete the course, you'll be ready to use your own data to describe realities, build scenarios, and predict performance.
Upcoming start dates
Suitability - Who should attend?
This Business and Financial Modelling Course is ideal for:
- 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. Attendees should be able to use the basic facilities of Microsoft Excel and have basic accounting knowledge.
Outcome / Qualification etc.
By the end of the Business and Financial Modelling Course, participants will be able to:
- Incorporate an operating cash requirement into the model and understand how this differs from the modelling of excess cash
- Build all formulae clearly and correctly
- Compute interest income and expense based on average balances, and carefully control the resulting intentional circularity
- Check your complete model for errors and save it in a professional manner, ready to be shared with colleagues or clients
- Comprehend the significance of legitimate formulation and interpretation of models.
- Apply statistical tools such as Exponential Smoothing, Regression, and Seasonality.
- Make an interpretation of specific business challenges into logically structured mathematical models.
- Take full advantage of your software investment by creating more powerful models in less time.
- Figure out 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 reasonable conclusions from the results of your models.
- Be able to determine product mix to enhance profits.
Training Course Content
Day 1
Introduction and overview of Financial Modelling
- Characterise 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
- Understand 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 company’s Financial Performance.
- Use “Peer Group” Analysis to Measure a company’s Financial Performance.
- Use Financial Ratios Models to Analyse a company’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.
- Rationalise 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 Optimisation 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
- Comprehend How Models are Created and Used.
- Deal with Problems in the Development and Use of Financial Models.
- Use Financial Models Effectively.
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