Book Image

Hands-On Financial Modeling with Microsoft Excel 2019

By : Shmuel Oluwa
Book Image

Hands-On Financial Modeling with Microsoft Excel 2019

By: Shmuel Oluwa

Overview of this book

Financial modeling is a core skill required by anyone who wants to build a career in finance. Hands-On Financial Modeling with Microsoft Excel 2019 explores terminologies of financial modeling with the help of Excel. This book will provides you with an overview of the steps you should follow to build an integrated financial model. You will explore the design principles, functions, and techniques of building models in a practical manner. Starting with the key concepts of Excel, such as formulas and functions, you will learn about referencing frameworks and other advanced components for building financial models. Later chapters will help you understand your financial projects, build assumptions, and analyze historical data to develop data-driven models and functional growth drivers. The book takes an intuitive approach to model testing and covers best practices and practical use cases. By the end of this book, you will have examined the data from various use cases, and have the skills you need to build financial models to extract the information required to make informed business decisions.
Table of Contents (15 chapters)
Free Chapter
1
Section 1: Financial Modeling - Overview
4
Section 2: The Use of Excel - Features and Functions for Financial Modeling
7
Section 3: Building an Integrated Financial Model

Summary

In this chapter, we have learned how to incorporate into your model a number of tests and procedures in order to improve the accuracy of the model. We have learned a number of basic procedures to follow in order to troubleshoot where errors are revealed in your model. We have understood the meaning of sensitivity analysis and learned how to use the direct and indirect methods. We have also learned how to display our results in a chart and to interpret them meaningfully. Finally, we learned about scenario analysis, how it differs from sensitivity analysis, and how to use it.

Financial modeling can be a complex topic, but we hope we have been able to demystify it enough to encourage you to take on what can be a very rewarding subject. It is impossible to avoid some technical content entirely, but we hope that even here, we have been able to make it less intimidating.

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