Financial modeling using Excel is a skill used by financial analysts to evaluate investment opportunities and corporate transactions such as mergers and acquisitions. The use of Excel to build a financial model is a common practice in finance. It involves building a forecast, projecting a company’s cash flow into the future, and discounting it back to the present value. Many formulas and functions in Excel are used to build models.
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: