Financial Modelling In Excel Training Course

Our financial modelling course provides a sound understanding of both the principles of financial modelling and the practical application of these to real-world situations by using Excel to build financial models.

The course builds upon the financial modelling principles and practices learned, to apply these to company or project valuations. In this, participants improve their mastery of valuation principles and concepts, and learn how to apply these in real-life situations.

Finally, participants will receive training in how to both detect and prevent errors from occurring.

Course Outline:

• Course Overview, Objectives & Introductory Concepts
• Financial modelling concepts: Aims, design, structure and development
• Corporate finance and valuation concepts
• Introductory Concepts
• Cash vs Profit
• Time Value of Money
• Cost of Capital
• Risk, return & value
• Scenario Analysis
• Financial Forecasting & Analysis
• Common difficulties, problems and limitations with financial analysis
• Defining the decision
• Availability of information
• Defining model scope
• Knowing the limitations of financial analysis
• Information overload
• Financial Forecasting
• What is it?
• Steps involved
• Best practices & financial modelling standards
• Financial Decision Making & Evaluation
• Common financial / investment decisions
• Understanding the Time Value of Money concept
• Understanding Discounted Cash Flows
• Evaluation of different methodologies (including NPV, IRR, Payback Period)
• Introduction to valuation concepts including NPV
• Identifying & dealing with IRR difficulties
• Valuation tools and methodologies
• Reviewing valuation concepts
• Valuation methodologies (including evaluation of different methodologies)
• Dealing with common valuation issues
• Compare & contrast alternative valuation methods to know when to apply each
• Discounted Cash flow
• Overview of DCF methodology
• The role of Cash Flow Forecasts
• Cost of Capital
• Ratios and Key Performance Metrics
• Performing a Ratio Analysis
• Understanding Profitability Ratios
• Interpreting Liquidity and Solvency Ratios
• Financial Modelling & Forecasting in Excel
• Overview & Objectives
• Defining the scope of your model
• Objectives: What are the aims of the model?
• Understanding model limitations
• Development and structuring
• Planning the financial model
• Ensuring the model structure matches the objectives
• Incorporating best practice techniques into your models
• Compare a selection of best practice guidelines/standards
• Structuring the Cash Flow Model
• Setting Up the Work Book & structure
• Time scale
• Separate business areas
• Timing and frequency formats
• Data Sources
• Managing the Input Section
• Building the Calculation Section
• Building the C/Flow Forecast
• Line by line build-up of cash flows
• Cap Ex and Op Ex
• Presenting Model Outputs
• Key Financials
• Summary of model data
• Dashboards & Graphs
• Valuations & terminal values
• Integrated 3-way Financial Models
• Balance sheet, Income statement, cash flow
• Dealing with interest circularity
• Using ratios to produce financial forecasts
• Debugging a 3-way model
• Debt and Capital Structuring
• Typical Bank Covenants & Ratios
• The Importance of Capital Management
• Why it is important (cost of debt vs equity)
• Defining your optimal capital structure
• The Effect of Capital Structure
• Understanding its effects on risk
• Sensitivities & Scenario Management
• Sensitivity
• Identifying key variables for sensitivity
• Building in sensitivities
• Displaying the results of sensitivity analysis
• Scenarios
• How to run multiple sets of inputs through a single calculation engine
• Building, managing and extending a scenario manager that is far better than Excel’s
• Introduction to Monte Carlo simulation: how to apply these techniques in practical ways to real-life financial models
• Best Practice Reporting, Review and Presentation
• Checking outputs for consistency
• Techniques for building checks & balances
• Model audit & review
• Automated spreadsheet auditing software tools: role, purpose & limitations, demonstration
• Documentation
• Use of financial modelling software: when is it useful or not useful?

• Business & Finance Analysts
• Finance Managers
• Investment Managers
• Investment Analysts
• CFO’s
• Financial Modellers
• Project Managers
• Project Accountants
• Investment & Corporate Bankers
• Corporate Finance Managers
• Finance Professionals
• Accountants

• An excellent working knowledge of financial modelling functions in Excel that allow you to efficiently create robust and flexible models.
• A sound understanding of financial modelling and valuation concepts.
• Practical experience in designing solutions to real-world financial modelling challenges by building financial models in Excel.
• A solid foundation for Excel-based financial modelling.
• Excel tools and techniques that are essential for modelling to make your models robust,
• user-friendly, and efficient.