Financial Modeling Foundations

Learn how to build financial models that can be used in corporate finance, investment banking, and for firm valuation.

Introduction

• Using Excel for financial modeling
• What you should know before watching this course

1. Financial Modeling Basics

• What is financial modeling?
• Why is financial modeling important?
• Business questions and financial models
• Data for a model
• Sources of data
• Gathering data from FRED for Excel
• Getting started with the project
• Excel tips for financial modeling

2. Corporate Financial Modeling: Three-Statement Financial Model

• Foundations of the model
• Linking financial statements
• Three-statement financial model
• Setting source parameters
• Assumptions in financial statements
• Forecasting in financial statements
• Putting it all together
• Improving model quality

3. Evaluating Corporate Financial Models: Three-Statement Model

• Financial modeling strategies
• Sensitivity analysis and financial models
• Adding visuals to a financial model

4. Investment Models: DCF Model

• Financial valuation models
• Cash flows in the valuation model
• Terminal value in a valuation model
• Interpreting a DCF model

5. Banking Models

• Beyond the basics in financial models
• Corkscrews and models
• Waterfalls and models
• Adding toggles to a financial model
• Model outputs
• Hiding tabs and making models readable
• Stress testing models

6. Buyout Models

• Interest rate assumptions in models
• Discount rates in models
• Top-down financial models
• Bottom-up financial models
• IRR decisions in financial models
• NPV decisions in financial models
• Limits of financial models

7. Financial Modeling across Industries

• Characteristics of financial models
• Modeling in banking
• Modeling in corporate finance
• Modeling in investments

8. Building and Maintaining Models

• Applications of financial models
• Bitcoin and cryptocurrency valuation modeling
• Updating financial models
• Maintaining ongoing financial models

Conclusion

• Next steps