All articles with 'pristine' Tag

Dear readers & supporters of Chandoo.org,

I am very glad to announce that our brand new online course – “Finance for non-finance people” is now available for your consideration. Please take a few minutes to read this short message to understand what this program is & how it benefits you. If you are ready to join, please click here.

What is Finance for Non-finance people course?

This course aims to teach financial fundamentals & introduce you to the world financial analysis in a no-nonsense way.

We start by introducing financial analysis and the basic jargon. Then we talk about 3 important components of any company’s finances – Balance Sheet, Income Statement & Cash flow Statement.

Then we discuss about various analytical techniques like ratio analysis, valuation mechanisms, break-even analysis.

Finally we explain advanced accounting concepts like long-lived assets, depreciation, explore trend analysis and unit economics.

In a nut-shell, this course takes someone with no finance background and makes them proficient in world of finance.

You take an apartment on rent at $1000 per month and the owner puts an escalation clause saying 10% increment each 3 years. How do you model this in excel? In this tutorial we understand how escalations at certain frequency can be implemented using the mod function in excel. What is the mod() function Simply […]

In the second part of our series on project finance using Excel, Paramdeep tells us how to model “interest during construction” in real estate and construction type of projects. We take a case of hospital construction and learn how to calculate the IDC using circular references.

You can also download both blank and completed model so that you can test the skills.

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.

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!