What is Financial Modeling Research?
Financial modeling research includes the preparatory work that’s done before and while building a model in ExcelExcel Modeling Best PracticesThe following excel modeling best practices allow the user to provide the cleanest and most user-friendly modeling experience. Microsoft Excel is an extremely robust tool. Learning to become an Excel power user is almost mandatory for those in the fields of investment banking, corporate finance, and private equity.. The main research that needs to be conducted includes: (1) analyzing historical results, (2) evaluating market dynamics such as supply and demandSupply and DemandThe laws of supply and demand are microeconomic concepts that state that in efficient markets, the quantity supplied of a good and quantity demanded of that good are equal to each other. The price of that good is also determined by the point at which supply and demand are equal to each other., (3) researching competitors, (4) understanding the company’s management team, their strategy and visionCorporate StrategyCorporate Strategy focuses on how to manage resources, risk and return across a firm, as opposed to looking at competitive advantages in business strategy for the business, (5) evaluating the risks associated with the company, and (6) planning how to structure the model. Once this research is complete, the model can be built.
