Financial Modelling

by Mohit Damani
Time: 12th October onwards
Age: 18+
Fees: Rs. 40,000

Financial Modeling teaches you to work with historical information on companies and analyze the company/industry performance on relevant financial parameters. This analysis is then used as an input to build financial models. These models project the future financial performance of the project/companies and help us to take financial decisions like valuation of companies using DCF technique, price targets for stocks, projecting the combined Company after merger & acquisition, Merger & acquisition EPS accretion/dilution analysis, etc. 

Since Financial Modeling is core skill, it finds application in almost every area of finance which includes but is not limited to:

  • Equity Research
  • Investment Banking
  • Merger & Acquisition Advisory
  • Corporate finance
  • Business Valuation
  • Private Equity

 

Target Audience:

  • Students pursuing finance related courses like CFA/FRM/MBA Finance/CFP etc. 
  • Students pursuing CA and targeting core finance job profiles like equity research, investment banking etc.
  • Finance professionals aiming to take up core finance related roles like investment banking etc.
  • B. Com graduates/final year students looking for opportunity in finance sector.

 

Syllabus (Theory + MS Excel)

We start from scratch taking students through basic concepts and application of same in MS Excel – teaching the way projection is done in practical life in most of MNC Companies in a pre-designed model. Also to ensure students imbibe practical application of financial modelling, everything mentioned below is performed on listed Companies. Topics covered are:

 

Core Skills:

  • Time Value of Money functions
  • Free cash flow calculations
  • Weighted average cost of capital calculations
  • Projecting the financial statements – Income statement, Balance sheet and cash flow statement for Companies.
  • Business valuation using DCF technique – determining Buy/Sell decision for stock.
  • Performing Scenario/Sensitivity Analysis.
  • Merger & Acquisition modelling.

Supporting Skills:

  • Developing the skill set to read Annual report
  • Using all publicly available resources to forecast a Company.
  • Basic excel related functions.

Duration: 30 hours (completion in 1.5 to 2 months)

Certificate of Completion will be provided.

 

Frequently Asked Questions:

1. I have completed the CFA® program. Can Financial Modeling help me?

The CFA® Program would have taught you the theoretical base on valuation, investment banking etc. In Financial Modeling, you will learn how to use this conceptual understanding in the practical world of finance where you will prepare financial models of a company to estimate its valuation.

 

2. Does Financial modeling add value to candidates who are CA?

If you are a CA who doesn’t want to get into the traditional fields of audit, account and tax and instead covets Investment Banking, Private Equity, Equity Research then you should learn Financial Modeling. Moreover, many CAs are involved in Project Finance as well. Financial Modeling will help you to make Project Finance reports using all the contemporary techniques.

 

3. How can a person who is B. Com graduate or final year student, benefit from Financial Modeling?

Earlier, most of the job opportunities in the field of finance such as Financial Research, Equity Analysis, Credit Analysis where available only to the CAs & MBAs. But with changing job profiles and cost pressures, many companies are hiring fresh graduates. If you do Financial Modeling, then your chances of being selected for a research job increases substantially. Moreover, many opportunities are opening up in the field of Financial Research and KPOs where they hire Graduates. Financial Modeling will also provide you to form a solid foundation and understanding for The CFA® Program as well.

 

4. Is Financial Modeling of any benefit to candidates pursuing MBA Finance?

If you are pursuing an MBA in Finance and want to make a career in any of the financial sectors such as Equity Research, Investment Banking, Project Finance, Corporate Finance or Credit Research then Financial Modeling will definitely be a big part of your job profile. You will learn practical applications of the theory subjects that you have learnt in your MBA such as Financial Management, Accounts and Economics. In Financial Modeling, you will learn how in real life various core financial decision making activity is done in excel. Lastly, it will also help you to improve your profile vis-à-vis other candidates of your institute.

 

5. I am from engineering background. How will Financial modeling add value to my Career?

The financial modeling program doesn’t require the candidate to have a commerce background. As long as the the candidate wants to understand decision making which may be in the form of project finance, or equity research or any other field where decision making comes in handy.

 

6. I am looking to work in banking industry. Does financial modeling offers any help to me?

In corporate banking, most of the work deals with lending money to institutions and/or projects. Financial Modeling helps you to evaluate them and fund the projects/intuitions which are Financially Viable.

 

7. What is the role of credit analyst and how financial modeling plays part in it?

Credit analyst’s primary job is to check the creditworthiness of a company which wants to raise money. In such cases, the analysts observe the past performance of the company to evaluate whether the company can meet its financial obligations. In India, companies that want to raise debt from the market will get a credit rating from the rating house. Based on this rating, they can raise money from the market. With a better rating, more funds will be generated with a lower interest rate.

Financial Modeling equips Credit Analysts in collecting historical information as well as outstanding debts and forecasting the future growth on excel to determine the nature and degree of risk factors, which helps him/her in giving the rating.

 

8. What is Investment Banking? How does Financial Modeling helps in Investment banking?

Financial Modeling also helps investors to find companies where they can invest for better returns. Usually, the Investment Banks also end up helping/advising their clients on how to manage their financial assets.

Financial Modeling assists the investment bankers to do the valuation of the companies. If you want to get into Investment Banking, then Financial Modeling has proven to be a pre-requisite.

 

9. How is Financial Modeling of key essence in field of Equity research?

The primary role of an equity research analyst is to analyze companies in order to find possible investments. Sell-side equity research provides its research to the clients. Buy-side equity research is when the analysts perform research to invest in their firm’s money (e.g. mutual funds, hedge funds etc).

In Financial Modeling, you will learn how to discover the financial condition of a company and its future growth prospects. Based on this you will carry out valuations of a company and prepare a research report.

 

10. What is the applicability of Financial Modeling in field of project finance?

Project finance deals with long term financing of infrastructure and industrial projects, based upon the projected cash flows of the project instead of the balance sheets of the project sponsors. It is quite attractive to the private sector because of the ability to fund major projects off the balance sheet. 

Financial Modeling will train you to prepare such project finance models, forecast revenues, evaluate projects and finally present a project finance report to the investors. We have prepared a special module in the Financial Modeling program for Project Finance.


About the organizer

Trainer: Mohit Damani, CA, CS, CFA (US), FRM (US), B. Com (H), NCCMP, Dip in Finance.

Location

OPENHOUSE
7th Floor, AC Market, Theatre Road