Course Details
Course Outline
5 days course
Introduction to Financial Modelling and Time Value
- Definition of Financial Model and why companies use financial models
- Describing the process and key steps of creating reliable financial models
- Techniques to improve traditional financial models and the role of Flowcharting
- Introduction to Time Value of Money (TVM): Definitions, principles, and formulas
- Identifying the core applications of Time value money concepts in financial models :
- Weighted Average Cost of Capital (WACC) in capital budgeting models
- Net Present Value (NPV) in making capital expenditure decisions
- Internal Rate of Return (IRR) in making capital expenditure decisions
- Guidelines for using the built-in functions for NPV, IRR, and MIRR
Financial Analysis Models
- Comparing various financial analysis techniques in financial models:
- Break-Even Analysis
- Scenario Analysis
- Sensitivity Analysis
- Best practices and methods for incorporating financial analysis techniques in financial models
- Understanding the fundamental concepts and different types of Leasing
- Identifying the financial reasoning behind choosing between leasing an asset or purchasing it
- Discovering how to use financial models for making lease versus buy decisions.
- Discussing the importance of considering risk management in financial decisions
Financial Ratio Analysis and Valuation Models
- Identifying major financial ratios used to assess a company’s financial performance and operational health:
- Profitability Ratios
- Liquidity Ratios
- Solvency Ratios
- Efficiency Ratios
- Understanding the “Peer Group” analysis for measuring financial performance
- Discussing the application of financial ratios models in financial performance analysis
- Exploring different Valuation Models for stock and bonds:
- Discounted Cash Flow (DCF) Model
- Dividend Discount Model (DDM)
- Price-to-Earnings (P/E)
- Comparable Company Analysis (CCA)
- Techniques for calculating intrinsic value, market value, price, and yield to maturity (YTM)
- Guidelines for building a financial model for evaluating stock and bond investment
Advanced Modelling Techniques and Tools
- Advanced Excel tools to solve complex financial problems (e.g. Solver and Goal Seek)
- Listing the steps required for developing a financial optimization model
- Discussing different types of financial activities to be included in the model
- Guidelines for building a connected financial model
- Steps and techniques for creating a multiple-part model
- Reviewing and analyzing real examples of financial models
Application, and Troubleshooting in Financial Modelling
- Overview of the Comprehensive Model Lifecycle from model creation and testing to practical application
- Identifying frequent issues in model development and offering practical solutions to overcome them
- Best practices for deploying financial models to drive strategic decision-making and operational improvements
- Discussing methods for validating and reviewing models to ensure long-term accuracy and robustness
- Defining the importance of updating models regularly based on new data and performance evaluations
- The final presentation of a personalized financial model
