Financial Modeling and Valuation

What Is Financial Modeling and Valuation?

Financial modeling and valuation is the practice of forecasting the free cash flow (FCF) of a business into the future and discounting it back to its net present value (NPV) at the weighted average cost of capital (WACC). Alternative valuation methods include comparable company analysis and precedent transactions. These methods are used to value companies for mergers, acquisitions, and capital raising.

Example Excel Model

Below is a screenshot from one of CFI’s online analyst training and certification courses.  To how how to build an excel model step-by-step, click on the image below.

financial modeling questions

Additional Questions and Answers

CFI is a the official global provider of financial modeling and valuation analyst FMVA Designation. CFI's mission is to help anyone become a world-class financial analyst and has a wide range of resources to help you along the way. In order to become a great financial analyst, below are some additional questions and answers for you to explore further:

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