What is a Certified Financial Modeler?
A Certified Financial Modeler is someone who has successfully completed all the requirements of CFI’s Financial Modeling & Valuation ProgramFMVA™ CertificationThe Financial Modeling & Valueation Analyst (FMVA)™ accreditation is a global standard for financial analysts that covers finance, accounting, financial modeling, valuation, budgeting, forecasting, presentations, and strategy.
. The program includes 12 required courses (9 core courses and 3 elective courses) and requires a passing grade of at least 80% in each of the courses’ final assessments.
FMVA™ CertificationThe Financial Modeling & Valueation Analyst (FMVA)™ accreditation is a global standard for financial analysts that covers finance, accounting, financial modeling, valuation, budgeting, forecasting, presentations, and strategy.
What are the skills of a Certified Financial Modeler?
A Certified Financial Modeler must possess strong skills in three main areas: accountingFinancial Accounting TheoryFinancial Accounting Theory explains the "why" behind accounting - the reasons why transactions are reported in certain ways. This guide will help you understand the main principles behind Financial Accounting Theory, finance, and Excel. To learn these skills, students complete instructor-led, video-based classes with numerous examples and exercises that teach practical applications.
Skills taught include:
- Understanding of accounting principles
- Ability to read and analyze financial statementsAnalysis of Financial StatementsHow to perform Analysis of Financial Statements. This guide will teach you to perform financial statement analysis of the income statement, balance sheet, and cash flow statement including margins, ratios, growth, liquiditiy, leverage, rates of return and profitability. See examples and step-by-step instruction
- Excel keyboard shortcuts, functionsFunctionsBecome a Certified Financial Modeler by taking CFI's Financial Modeling & Valuation Analyst (FMVA) program. To become certified you must complete 12 required courses in accounting, financial fundamentals to financial modeling, valuation, PowerPoint, and advanced Excel skills., and formulas
- Ability to dynamically link the three statementsHow the 3 Financial Statements are LinkedHow are the 3 financial statements linked together? We explain how to link the 3 financial statements together for financial modeling and valuation in Excel. Connections of net income & retained earnings, PP&E, depreciation and amortization, capital expenditures, working capital, financing activities, and cash balance in Excel
- Use of assumptions and drivers to create a financial forecast
- Perform business valuation using Discounted Cash Flow (DCF)DCF Model Training Free GuideA DCF model is a specific type of financial model used to value a business. DCF stands for Discounted Cash Flow, so the model is simply a forecast of a company’s unlevered free cash flow discounted back to today’s value. This free DCF model training guide will teach you the basics, step by step with examples and images, comparable company analysisComparable Company AnalysisHow to perform Comparable Company Analysis. This guide shows you step-by-step how to build comparable company analysis ("Comps"), includes a free template and many examples. Comps is a relative valuation methodology that looks at ratios of similar public companies and uses them to derive the value of another business, and precedent transactionsPrecedent Transaction AnalysisPrecedent transaction analysis is a method of company valuation where past M&A transactions are used to value a comparable business today. Commonly referred to as “precedents”, this method of valuation is used to value an entire business as part of a merger/acquisition commonly prepared by analysts
- Learning to apply the above skills to specific industries
- Advanced modeling activities such as sensitivityWhat is Sensitivity Analysis?Sensitivity Analysis is a tool used in financial modeling to analyze how the different values for a set of independent variables affect a dependent variable under certain specific conditions. Sensitivity Analysis is performed in Excel to asses risks, measure potential outcomes, and plan for an uncertain future and scenario analysesScenario AnalysisScenario analysis is a technique used to analyze decisions through speculating various possible outcomes in financial investments. In financial modeling, this process is typically used to estimate changes in the value of a business or cash flow. By using the Choose or Offset functions an analyst can crease base case
- Transactions and other cases studies such as mergers and acquisitions (M&A) modelingHow To Build A Merger ModelA merger model is the analysis of two companies combining to form one and the associated impact on financials. Learn the steps how to build a merger model: making acquisition assumptions, making projections, valuation of each business, combination and pro forma adjustments, deal accretion/dilution
- Ability to effectively communicate the results of financial analysis in a presentation, using charts and graphs
Why become a Certified Financial Modeler?
There are many reasons to become a Certified Financial Modeler. The most important is to demonstrate to employers your commitment and focus on becoming a world-class financial analyst.
In a world of increasing competition for the top jobs in finance, it’s more important than ever to stand out from the pack. Completing a rigorous 100-hour program such as CFI’s certification shows employers that you have the ambition and the skills required to perform great financial analysis.
Unlike other designations, CFI’s Certified Financial Modeler program focuses almost entirely on practical applications and real-world analysis. This approach means you gain the actual hands-on skills required to take financial information, interpret it, analyze, come to conclusions, and communicate the results.
Additional Information
CFI is the official provider of the Financial Analyst CertificationFMVA™ CertificationThe Financial Modeling & Valueation Analyst (FMVA)™ accreditation is a global standard for financial analysts that covers finance, accounting, financial modeling, valuation, budgeting, forecasting, presentations, and strategy. in Financial Modeling. To learn more about how CFI can help you advance your career, these additional resources will be helpful:
- CFI’s Financial Modeling & Valuation programFMVA™ CertificationThe Financial Modeling & Valueation Analyst (FMVA)™ accreditation is a global standard for financial analysts that covers finance, accounting, financial modeling, valuation, budgeting, forecasting, presentations, and strategy.
- Compare CFI bundles and pricesCompare Prices & BundlesCompare prices of our courses, certificates, and bundles for accounting, finance, financial modeling, valuation, Excel, and financial analyst training
- Financial modeling resourcesFinancial ModelingBecome a Certified Financial Modeler by taking CFI's Financial Modeling & Valuation Analyst (FMVA) program. To become certified you must complete 12 required courses in accounting, financial fundamentals to financial modeling, valuation, PowerPoint, and advanced Excel skills.
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