What is Financial Modeling and Valuation?
Financial modeling and valuation is the practice of forecasting the free cash flow (FCF)Free Cash Flow (FCF)Free Cash Flow (FCF) measures a company’s ability to produce what investors care most about: cash that's available be distributed in a discretionary way of a business into the future and discounting it back to its net present value (NPV) at the weighted average cost of capital (WACC)WACCWACC is a firm’s Weighted Average Cost of Capital and represents its blended cost of capital including equity and debt. The WACC formula is = (E/V x Re) + ((D/V x Rd) x (1-T)). This guide will provide an overview of what it is, why its used, how to calculate it, and also provides a downloadable WACC calculator. Alternative valuation methods include comparable company analysis and precedent transactions. These methods are used to value companies for mergers, acquisitions, and capital raisingCapital Raising ProcessThis article is intended to provide readers with a deeper understanding of how the capital raising process works and happens in the industry today. For more information on capital raising and different types of commitments made by the underwriter, please see our underwriting overview..
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