Financial Modeling

Program Overview:

This session will begin with an engaging hands-on case study to establish the ground rules of financial modeling. We first review the fundamentals of accounting by looking at the basics of statement analysis. We then setup a basic model from scratch, creating a customizable structure to enable flexible forecast modeling. Throughout the course we will touch on key Excel shortcuts and formulas that allow us to quickly change our model and run alternate scenarios. This high-impact course provides an opportunity to get hands on modeling skills from our experienced faculty of ex-bankers. We combine Excel analytical skills and commercial knowledge to create and

Session 1: 90-120 minutes

Fundamentals of Financial Modeling

  • The key functions required for successful financial modeling
  • Customizing Excel, styles and conditional formatting
  • Setting a basic model in Excel and using the most appropriate functions
  • Creating checks and balances to ensure model integrity
  • Understanding the structure of a model – inputs, workings, outputs
  • Range limitations – output requirements vs. input source
  • Creating a base sheet with assumptions/forecasts

Financial Statement Analysis – Reviewed

  • Key drivers of our financial model from the three main financial statements
  • Complexities and realties of a set of accounts
  • The main assumptions for our financial model
  • Ratio Analysis


  • Understand the main drivers of forecasting in our model for various industries and sectors
  • Practical use of Excel’s forecasting tools
  • Building Charts and visualizing our forecasts

Session 2: 90-120 minutes

Practical Valuation

A discussion and examination of Intrinsic vs. Market valuation Discussion, calculation and market examination of Enterprise Value (EV)

Relative valuation methods and steps:

  • Select a peer group
  • Select a multiple or multiples
  • Calculate multiple(s)
  • Apply the multiple
  • Calculate Equity value (via Enterprise Value)

Absolute Valuation Methods and Steps

  • Forecast Free Cash Flow to Firm (FCFF)
  • Estimate Terminal Value (TV)
  • Calculate WACC
  • Discount FCFF and TV at WACC
  • Move from Enterprise Value to Equity value

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