Financial Modeling Definition

What Does Financial Modeling Mean?

Financial modeling means understanding how a business generates cash flow, what the key performance drivers are, and determining how much the business might be worth to a rational investor. Many careers are involved with financial modeling, such as investment banking, equity research, and corporate development. Building a financial model means having strong knowledge of accounting, finance, and Excel. It requires a high degree of attention to detail.

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:

Analyst Certification Program