Self-study guides to help you master financial modeling
Want to become awesome in Financial Modeling?
You are the right place! Here are some of the best resources from which you can learn the nuts and bolts of Financial Modeling.
Choose from the topics below to start -
Financial Modeling Fundamentals
In these set of articles, you will learn Financial Modeling with step by step instructions. You should start first with the Financial Modeling Guide and thereafter move to other applications in Financial Modeling.
- Financial Modeling Guide - This is a mammoth step by step Financial Modeling guide of more than 6000+ words.In this, we take the case study of Colgate. We first download the SEC filings from Investor relations website and then populate the financials in excel. Thereafter, we learn how to perform fundamental analysis and do financial forecasting including linking of three statements like Income Statement, Balance Sheet, and Cash Flows. We also learn the nuances of Financial Modeling like formatting, circular references, forecasting individual items like depreciation, amortization, shareholders' equity, debt and more.
- Fundamental Analysis Guide - This is another gem with more than 9000+ words of step by step guide to doing Ratio Analysis. In this tutorial, we take Colgate case study and dissect its financials and perform Fundamental Analysis for Financial Modeling
- Time Value of Money - TVM is one of the most important concepts of Valuations and Financial Modeling. In this article, we look at how why money earned today is more than the same money earned tomorrow. We also discuss the future value concept, doubling period, annuity, perpetuity, loan EMI calculator and more.
- Breakeven Point Formula - Breakeven point is a point in business wherein you incurred no profit and no loss. In this article, we look at what is Breakeven point and why it is important for Financial Modeling. We also take Netflix example and calculate its breakeven point and its limitation in the analysis.
- Difference between NPV and XNPV - Understanding the difference between NPV and XNPV is very important. NPV is used primarily for calculating Discounted Cash Flow. An improvement over NPV is to use XNPV where it allows us to input non-uniform cash flows along with dates. We can also use XNPV to find the Target Price of the stock.
- Payback Period and Discounted Payback - It is extremely important in Financial Modeling to know when the return from investment is equal to the project cost. In this article, we look at Payback Period and Discounted Payback Period along with the help of practical examples.
- Financial Modeling Interview Questions and Answers - If you are appearing for Financial Modeling interview or want to hone your Financial Modeling skills, then do have a look at this Financial Modeling Q&As. Here I have listed most important Financial Modeling concepts that you must know and many tricky questions that are asked during such modeling interview.
- Top 15 Financial Functions in Excel - If you want to master Financial Modeling in excel, then do have a look at these Top 15 functions that will help you in Finance.
- FCFF - Free Cash Flow to Firm or FCFF is the primary technique used in DCF financial and valuation modeling. The key here is the forecast the financial statements of the company and thereafter find the FCFF. Using time value of money concept, we discount these cash flows to find the value of the total firm.
- FCFE - Just like FCFF, Free Cash Flow to Equity or FCFE is an alternative way used in DCF financial modeling to value a stock. In this approach, calculated to find the fair value of the stock.
- Sensitivity Analysis in excel - Sensitivity Analysis in Financial Modeling is very helpful for visualizing different scenarios like optimistic as well as pessimistic one. One useful application of sensitivity analysis in excel is the one where we calculate the impact of changes in growth rates and weighted average cost of capital on fair valuation of stock. In this article, you learn one-dimensional data table as well as two-dimensional data tables.
- Dividend Discount Model or DDM - This model is very useful to value companies that have a stable dividend policy. In this article, we look at types of dividend discount model like zero growth model, constant growth rate, and variable growth rate model.
- Alibaba Financial Modeling - In this article, we create Alibaba Financial model and find the fair value of the stock using DCF and relative valuation approaches.
- Box IPO Financial Modeling - Here we analyze Box SEC Filings and create Box IPO Financial Model.
- Box Valuations - We analyze Box IPO in greater detail and study its financial model. We find the answer to the question of to "invest or not to invest" in Box IPO.
Financial Modeling Templates
Financial Modeling Books
In this, I have prepared a list of Financial Modeling Books you may find useful -
Financial Modeling Courses
Financial Modeling Course is a bundle of 10 courses with 50+ hours of HD video tutorials and Lifetime Access. Modules include Financial Modeling, Discounted Cash Flows, Banking Sector Valuations, Real Estate Sector, Petro-chemical Sector, Islamic Banking Financial Modelling, Capital Goods, Telecommunication, Automobile, Broad Casting Sector Financial Modeling
For more details, please have a look at this Financial Modeling Course