WHAT IS FINANCIAL MODELING?
Financial modeling is a term for the process of calculating, estimating, and forecasting financial figures. Essentially, it is the creation of mathematical models for representing financial data of companies, projects, or even single securities. The main purpose of a financial model is generating predictions and recommendations on whether and how to invest funds.
There are different types of financial models. They range in complexity, from a simple cash budget that can be calculated by hand to a sophisticated merger & acquisition model that requires powerful computer software to run. Microsoft Excel is one of the most popular and useful programs used for financial modeling. Models also differ in purpose. Discounted Cash Flow, LBO, and option pricing models are all used for different ends, and a good financial analyst should know what model to use in different situations.
WHAT CAREERS WOULD I NEED FINANCIAL MODELING FOR?
Financial modeling is an indispensable skill whenever sound investment decisions need to be made. It is an absolute prerequisite for a career in investment banking, private equity, hedge funds, asset management, and venture capital. It is extensively used in project finance or even for effectively managing your personal finances.
HOW CAN THE IFI TRAINING COURSE HELP ME IN ENHANCING MY FINANCIAL MODELING SKILLS?
Financial modeling is a skill that can only be learned with a lot of practice. It is exactly the practical, hands-on approach of our training program that guarantees your proficiency in this core financial skill. You will be building Excel financial models, using real-company data, under the supervision and guidance of our experienced investment bankers. You will cover all main types of modeling – from integrated cash flow through leveraged buyout to mergers and acquisitions modeling. Although Excel financial modeling is a skill in itself, there are a number of prerequisite skills you need to have in order to master modeling. You should be proficient in financial accounting and corporate valuation as well. Needless to say, these skills are also extensively covered in our syllabus.