Financial modeling research includes the preparatory work that’s done before and while building a model in Excel. The main research that needs to be conducted includes: (1) analyzing historical results, (2) evaluating market dynamics such as supply and demand, (3) researching competitors, (4) understanding the company’s management team, their strategy and vision 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.
CFI is 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:
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To learn How to Build an Excel Model step-by-step, click on the image below.