Financial Modeling Research

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. These best practices. 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, (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.

Additional Questions and Answers

CFI is the official global provider of financial modeling and valuation analyst FMVA DesignationFinancial Modeling CertificationFinancial Modeling Certification - earn your certificate in financial modeling and valuation, for careers in investment banking, equity research, FP&A, treasury and accounting. CFI is the official global provider of the Financial Modeling and Valuation Analyst (FMVA)™ designation, designed to transform.... 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 answersKnowledge for you to explore further:

What is are the types of financial models?Types of Financial ModelsThe most common types of financial models include: 3 statement model, DCF model, M&A model, LBO model, budget model. Discover the top 10 types of Excel models in this detailed guide, including images and examples of each. Financial modeling is performed for many reasons including to value a business, raise money
What is sensitivity analysis?What is Sensitivity Analysis?Sensitivity Analysis is a tool used in financial modeling to analyze how the different values for a set of independent variables affect a dependent variable under certain specific conditions. Sensitivity Analysis is performed in Excel to asses risks, measure potential outcomes, and plan for an uncertain future
What is bookkeeping?Accounting
What are the most common valuation methods?Valuation MethodsWhen valuing a company as a going concern there are three main valuation methods used: DCF analysis, comparable companies, and precedent transactions. These methods of valuation are used in investment banking, equity research, private equity, corporate development, mergers & acquisitions, leveraged buyouts and finance

Example Excel Model

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Financial Modeling Research

What is Financial Modeling Research?

Additional Questions and Answers

Example Excel Model

Analyst Certification Program

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