All articles in 'Financial Modeling' Category

Lets keep this quick and short, As some of you may know, There is a mega IPO (initial public offering) going on in India these days. It is for a company called Coal India Ltd. So my partners at Pristine Education thought, it would be cool to build a financial model analyzing the IPO. Click […]

Hi all,

A very quick announcement. We have opened Financial Modeling School for registrations now. Click here to learn more about the program and sign-up.

You get $100 discount if you are one of the first 100 students to sign-up. So go ahead and enroll today.

Financial modeling is a no catwalk. You can not look pretty, wear ridiculous outfits and expect to find if a project is worth investing money in. That is why I am very happy to announce Financial Modeling School.

Please read this short post to learn more about the program.

If you are building financial models or any other type of excel based decision models, chances are, there will be multiple scenarios in your model. Whenever you have multiple scenarios, you may want an easy, intuitive way to select one of them. In this post, I will present an interesting scenario display & selection technique that I received by email from our reader Itay Maor.

This is a guest post written by Paramdeep from Pristine. Chandoo.org is partnering with Pristine to bring an excel financial modeling online training program for you. This is Part 6 of 6 on Financial Modeling using Excel In this tutorial we are going to learn how to build assumptions & input sheets in our excel […]

In the 4th and 5th part of our financial modeling series, we will learn how to model and build cashflow projections for project valuation.

We will understand the basics behind cash-flow modeling, what kind of non-cash expenses should be added back to get the free cash-flow. You can also get the blank and completed cash-flow projection worksheets to practice these techniques.

In the third part of our series on Excel Financial Modeling, we teach you how to make an assumptions worksheet to keep track of various investment, working capital and operational assumptions related to project valuation in place.

You can also download the blank worksheet in which you can fill-up assumptions after reading the business case.

As part of reader awesomeness week, today I am featuring a list that Larry sent me with 12 beautifully defined rules for making better spreadsheets. He says that spreadsheets should be easy to understand, have a clearly defined purpose and should use Excel features as much as possible. I totally agree with him.

Read the rest of this post to find the rules and download a poster containing these rules. Thanks Larry.

In the second part of our tutorial we will learn how to prepare the layout of our model to do project evaluation.

If you know basic referencing and formula framework in excel, you can write a model that calculates numbers. Good vs Bad financial model would be decided by the layout of the model.

Before we start discussing on how to build a good layout, lets see the layout that I have in mind. The layout is based on my experience of working as an investment banker and as a consultant and I find it neat.

In this and next 5 posts, we are going to learn how to build a financial model to do project evaluation using Excel. The 6 parts of this tutorial are,

1. Introduction to Financial Modeling
2. Building a layout for Project Evaluation Model – Best practices
3. Building Inputs and Assumptions Sheet
4. Building Projections for Project Evaluation
5. Modeling the Cash Flow Statement and Projections
6. Putting it all together – Final Project Evaluation Model

What is financial modeling?

Financial modeling is creating a complete program/ structure, which helps you in coming to a decision regarding investment in a project/ company. Now this could be on a simple piece of paper or in excel. The advantage with excel is that, even if you have calculation speed and accuracy like me (this is one place where I am like Einstien!), then also you would be able to come to the right conclusion!

Very Quickly, Chandoo.org is partnering with Pristine to start a free course on financial modeling using excel. If you are interested, take this short survey and tell us what topic you want to learn. Back Story One of the advantages of going to a premier MBA college is that you are bound to have good […]