What is Financial Modeling?

Financial modeling is one of the most highly valued but thinly understood skills in finance. The objective is to combine accounting, finance, and business metrics to create an abstract representation of a company in Excel, forecasted into the future.

[elisdefense]

I didn't know what financial modeling was, but from the looks of it I'm already pretty heavy into financial modeling both in work and in managing my personal finances!

[judyl.]

0:15 finance modeling: combine accounting, finance, and business metrics to create an abstract representation of a company in excel, and forecasted into future.
0:55 uses of financial modeling: making business decisions at a company, making investments in a private/public company, pricing securities, also corporate transaction such as M&A, divestiture, capital raise.
1:20 career paths: IB, equity research, PE, credit analysts, FP&A analyst, Corporate development.
2:20 Steps for building a financial modeling:
Historical data --> Ratios & metrics --> Assumptions --> Forecasts --> Valuation --> Additional analysis.
4:05 A good financial model should be simple for anyone to understand, and complex enough to handle complex situations.
best practices: 1. well-structured layout, 2. easy to follow and understand, 3. drivers and assumptions clearly laid out, 4. simplicity, 5. accurate, 6. focus on important issues, 7. visual outputs.
4:10
budget model: planing and analysis.
3-statement model:
DCF model: value a company --> IB, PE, equity research.

[jacquesroderick]

Nice and informative video. let's always focus on how to earn, I used to think of cryptocurrency trading as an afterthought, but it's turned out to be a major source of passive income since I met Mr Jeffrey Alby Holmes, his experience in the cryptocurrency market is second to none

[financialanalystprep]

more free content like this would be helpful for lot of people!

[zwcdpeu]

I admire the financial independence of people, But you can live better if you work a little more. After watching this I think there are people out there, on the extreme, who plan to die early just to be able to retire early. To each their own but to me, retirement isn't just about not having to work, it's about having the freedom to do whatever you might reasonably want, such as travel, buying things, enjoying life, etc. I don't think I could retire with less than $3m in income-generating investments, maybe $2m at the very minimum. I plan to work until I'm at least 45

[yongjiancao]

amazing course. useful, and free of charge. i love this channel.

[jasonmcdougall]

This was really well put together. Very informative.

[gauravshaw]

Thanks for your Short and simple guide!🙏

[samlarminjr]

Its great Learning these as a financier...

[Video-Games-Are-Fun]

you can even use financial modeling on YOURSELF to determine how you will behave with money in the future. WHY does this matter? MARRIAGE! do you want to marry someone who cannot control spending? and you can use it just on yourself to improve your own behaviors. this is not just for corporations because you yourself are a business as you earn income and have all the expenses most businesses do.

[DerickWilliam]

I began my investment journey at the age of 27, primarily through hard work and dedication. I am to share that my passive income exceeded $80k I’m a single month for the first time. This success reinforces the importance of the advice mentioned earlier. It is not about achieving quick wealth, but rather ensuring long term financial prosperity

[waleedbaig]

Very informative video for a beginner, Thank you.

[baberkhan]

Wao!
Your efforts are extremely gorgeous!

[ntcuongct]

Dear Friends,
I have 1 question regarding Financial Modeling:
1/ Please tell me the difference between Scenario analysis, sensitivity analysis, stress test?, and the intended use of each?. Thank you.

[selarathchum]

Hi all, Is there a free online course on financial modelings? Thank you,

[shalinipandey]

So pls tell me in detail fee structure and course duration where to apply

[shalinipandey]

Is your program online or classroom based. I'm from India and I am interested in the financial modelling course tell me if it's possible to take online classes

[wassukhan]

I want to do financial analyst for my future job

[happyandhealthy]

non understandable, not everyone understand finance at the same level or interpretation

[ramnivas]

Please make video how to learn Financial modelling