INTRODUCTION TO FINANCIAL MODELING
β’ Understanding the role of financial modeling in decision-making.
β’ Overview of Excel’s capabilities for financial modeling.
β’ Importance of accuracy and reliability in financial models.
β’ Introduction to common Excel functions used in financial modeling.
EXCEL FUNCTIONS FOR FINANCIAL MODELING
β’ Explore the most essential Excel functions for financial modeling.
β’ Application of functions for data manipulation, analysis, and presentation.
β’ Financial models file structure in Excel.
β’ Tips and tricks for efficient use of Excel functions in modeling.
BEST PRACTICES IN MODELING FORECASTED FINANCIAL STATEMENTS
β’ Principles of constructing forecasted balance sheets, income statements, and cash flow statements.
β’ Techniques for projecting revenues, expenses, and cash flows.
β’ Assumptions and drivers into financial models.
β’ Validation and stress-testing forecasted financial statements.
MONTE CARLO SIMULATION MODELING
β’ Understanding Monte Carlo Simulation and its applications in financial modeling.
β’ The construction of the models in Excel.
β’ Risk assessment and uncertainty.
β’ Interpretation and communication of results.
ADVANCED EXCEL TECHNIQUES
β’ Importance of using arrays for efficient data processing and analysis.
β’ The power of the OFFSET function in dynamic range creation.
β’ Data lookup and validation using MATCH function.
β’ Interactive and dynamic interfaces with drop-down menus.
THE DANGER OF USING IRR IN ISOLATION AND POSSIBLE SOLUTIONS
β’ Limitations of IRR as a sole metric for investment appraisal.
β’ Introduction to alternative metrics such as NPV, MIRR, and payback period.
β’ The shortcomings of relying solely on IRR.
β’ Strategies for mitigating the risks associated with using IRR in isolation.
