Training Course on Financial Modelling and Valuation

Financial modeling is the process of creating a summary of a company’s expenses and earnings in the form of a spreadsheet that can be used to calculate the impact of a future event or decision. It is a representation in numbers of a company’s operations in the past, present, and the forecasted future. Such models are intended to be used as decision-making tools. Company executives might use them to estimate the costs and project the profits of a proposed new project. This training on financial modelling and valuation offers you an opportunity to enhance your analytical abilities for quicker and better decision making. 

Ms Excel PowerBI

PowerBIExcel

Training Schedules per Continent

Africa    (7)Asia      (4)

America (5)Europe (3)

Target Participants

This training is designed for professionals who need to build, interpret, review and audit financial models. It is ideal for professionals in corporate and financial institutions who need to create useful and robust financial models, and wish to raise their financial valuation skills to a superior level.

What you will learn

By the end of the course the learner should be able to:

• Comprehend the significance of proper formulation and interpretation of financial models.
• Apply statistical tools such as Exponential Smoothing, Regression, and Seasonality.
• Translate specific business challenges into logically structured mathematical models.
• Get the most from your software investment by creating more powerful models in less time.
• Learn how to use Excel tools such as Solver, Goal Seeker, Scenario, and Spreadsheet Auditor.
• Analyse time series data and develop relationships using exponential smoothing and regression analysis techniques.
• Draw more realistic conclusions from the results of financial models.
• Be able to determine product mix to optimize profits.
• Simulate the potential return on new capital investments.
• Project the probability of processes running within budget.
• Develop models to support product pricing and/or product continuance.
• Design budget models for departments, divisions, processes, or other entities.

Course duration

5 days

Course Outline

Introduction and overview of Financial Modelling

• Definition of Terms – Model and Financial Model.
• The 10 Steps of Creating Good Financial Models.
• The 12 Steps to Improving Traditional Financial Models.
• Use of Flowcharting Techniques to Improve Modelling.

 Time Value Models

• Concept of Time Value of Money.
• Application of Time Value of Money Concepts in Financial Models.
• Use of Weighted Average Cost of Capital (WACC) in Capital Budgeting Models.
• Application of Net Present Value (NPV) and Internal Rate of Return (IRR) Models in Making Capital Expenditure Decisions.
• Using the Built-in Functions for NPV, IRR, MIRR.

Financial Analysis Models

• Break-Even Analysis
• Scenario Analysis
• Sensitivity Analysis
• Comparison of different financial analysis models.
• Incorporating Sensitivity Analysis and Scenario Analysis in Financial Models.

Lease v Buy Analysis Models

• Fundamental Concepts of Leasing.
• Different Types of Leasing.
• Analysis of Leasing an Asset vs. Purchasing the Asset.
• Using Financial Models to Make Lease vs. Buy Decisions.

Financial Ratio Analysis Models

• Major Financial Ratios.
• Use of Financial Ratios to Measure a Firm’s Financial Performance.
• “Peer Group” Analysis Measure of Firm’s Financial Performance.
• Financial Ratios Models use in Analysis of Firm’s Performance.

Models for Valuation of Stock and Bonds

• Application of Dividend Discount Techniques.
• Calculation of the “Intrinsic” Value of a Firm’s Common Stock.
• Difference between Intrinsic Value vs. Market Value for a Firm’s Common Stock.
• Bond Valuation Techniques.
• Calculation of the Price and Yield to Maturity (YTM) of a Bond.
• Evaluation of Potential Bond Investments.

Comprehensive Models and Tools

• Solver & Goal Seeker Tools.
• Developing a Financial Optimization Model.
• Types of Financial Activities That Can Be Connected in a Model.
• Construction of “Connected” Models.
• Construction of Multiple-Part Models.

Development and Use of Financial Models 

• How to Create and Use Models.
• Potential Problems in the Development and Use of Financial Models.
• Using Financial Models Effectively.
• Case study