Financial Modeling

Financial Model for Startup

Startup Financial Model Template Excel: A Complete Step-by-Step Guide

Though a general financial model for a startup template is an easy way to create a financial model, you will oftentimes find it hard to use that for your own business. Why? Because all startup financial models like the SAAS Financial Model have their own unique needs. For example, an internet venture relies heavily on web traffic whereas a physical store is more on foot traffic. startup financial models. The solution? Well, you need to create your own startup financial ...

Here's How to Calculate Sharpe Ratio in Excel with Formula

Sharpe Ratio Excel: Formula and Calculator Guide

In this article, I’m going to explain how to calculate one of the most famous ratios, among financial analysis, to measure risk in Microsoft Excel: the Sharpe Ratio Excel. The Nobel laureate William F. Sharpe developed the Sharpe Ratio. According to Investopedia: “The Sharpe ratio is calculated by subtracting the risk-free rate from the return of the portfolio and dividing that result by the standard deviation of the portfolio’s excess return.” The formula is the following: Where  Expected Return (P) is the expected ...

Practice as an Independent Financial Modeler

How to Build Your Practice in Freelance Financial Modeling?

The work profile of a financial modeler involves constructing a financial representation of some or all aspects of a company or any particular security. In-depth calculations are done to develop the financial model and deliver recommendations. In this article, we will discuss the possibilities of building your own practice in freelance financial modeling. Who Are You? You are someone who is educated and experienced in the finance research field to consider becoming a freelance financial modeler. You are working in ...

Financial Health of a Company

How to Determine the Financial Health of a Company: The Complete Guide

Financial health analysis (FHA), as the word says, is how to determine the financial health of a company. The analysis is primarily performed by the management of companies to assess the business sustainability of its suppliers. The overall health of a supplier sheds light on how well it will do in the short term and whether it will be able to honour the supply agreements. For example, Apple has a business agreement with 320 suppliers. At periodic intervals, the financial ...

How to Build a Revenue Model A Step by Step Guide

Revenue Projection Model: The Best Guide

The last time when I shared the super-actionable post, How to Analyze the Financial Health of a Company in 6 Easy Steps, I got emails from readers asking how to build a revenue model. So, I decided to write not ONE but FOUR approaches to the revenue projection model and take a real case in the retail industry. Revenue Projection Model in Retail Industry How The retail business is one of the largest and most diversified sectors covering a very ...

How to Use Excel for Finance

How to Use Excel for Finance: The Best Guide

Welcome to Excel for Financial Analysts post. Many of you might be wondering why this post? Why a separate excel post for how to use Excel in financial analysis? What’s so special about it?

Financial Modeling The Definitive Guide

How to Build Financial Models | A Complete Guide

What is financial modeling?” “Do you teach discounted cash flow modeling?” “Can you give me a sample financial model that I can fill with numbers and present in the interview?” “How to build financial models?” “How to get into financial modeling careers?” “How to build discounted cash flow analysis models?” I’m constantly bombarded with questions about best practices. And, the funny thing is—when I ask the person, “what is financial modeling?”, that person doesn’t have any clue. So, I thought ...

REIT Valuation Model Excel

REIT Valuation Model Excel: The Ultimate Guide

How many of you want to make a career in real estate or REIT Valuation Model Excel or REIT modeling? Those who are interested in making a career in real estate financial analysis, read on. I researched requirements of financial analysis in real estate or REIT sector. Glassdoor, Monster and SimplyHired websites gave me the requirements as below: REIT financial modeling requires Bachelor’s degree in Finance, Accounting, or Management (with a concentration in Finance or Real Estate), OR an MS/MBA ...

VBA Financial Modeling

VBA Financial Modeling Using Excel: The Beginner’s Guide

Financial Modeling Using Excel and VBA: Automation is the buzz word in today’s corporate world. Whether it is the manufacturing industry or the service industry, all businesses are aiming to reduce the human element for critical processes and tasks to improve efficiency and output. As a finance aspirant, you will see this trend in finance companies as well. Calculators are replaced by laptops, ledgers are replaced by spreadsheets and hardbound documented financial models are replaced by dashboards. If you want ...

How to Do DCF Valuation Using Sensitivity Analysis in Excel

How to Do DCF Valuation Using Sensitivity Analysis in Excel

In this post, we are going to see Sensitivity Analysis in Excel. Discounted Cash flow is probably the commonest way of valuation of a company. This method involves amongst other things analyzing the impact of factors like cost of equity or change in risk-free rate on the price of a company’s share. It is but obvious that any company operates in a dynamic environment and hence for investors it is imperative that the model so built gives the investor a ...