how to build a financial model

Skillfinlearning28 Apr, 2020Education

Name any financial institution’s strategy or a long-term projection by a business house and you will see that the underlying common factor is a financial model. Even non-financial enterprises use financial models to make business decisions and plan out an optimal approach. As examples, investment banks use the IPO valuation model to calculate the fair price of a firm’s shares. A typical B2C enterprise also uses financial modelling to forecast sales growth or employee acquisition. Real estate businesses to venture capitalists all need to know how to build a financial model in their specific sectors to make future growth plans.