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What exactly is financial modeling and how do I do it? Please be as specific as possible. Any websites? |
What exactly is financial modeling and how do I do it? Please be as specific as possible. Any websites? Financial modeling is a technique that using computer software to set up various conditions and project possible outcomes. Once a model is set up correctly, given that it can be used to project various outcome, it can also be use to determine the condition in which to create the best outcome. The top tier investment firms on wall street would hire economists and programmers with C++ or other computer language programming skills to create very complex models. For most people Microsoft Excel is fairly sufficient. You will need to have a full version of Microsoft Excel so that you can use the Seek function to look for the optimal solution. Get a book like these http://www.amazon.com/excel-modeling-cor... or http://www.amazon.com/building-financial... that explains the ins and outs of setting up financial models. When you purchase a book, make sure the book is using the same version of Excel as your software, which will make things so much easier. Best wishes. A good site is learntosucceed.biz They offer a CD-ROM of job advice and a phone number where you can speak directly with the owner of the firm. He's a Wall Street pro-perfect for your question. financial modeling, when you are talking about an investment or a company, is using excel to create projections for the future. You start by putting together a company's balance sheet, income statement, and statement of cash flows historically You then make certain assumptions (drivers) to project a company's future performance. These assumptions can come from looking at historical metrics, industry stats, or you can pull them out of thin air. In the end, if you are investing, the goal is to come up with what you believe to be the fair value for that company. Then take a look at what the current value of the company is today, and see if investing should yield an appropriate return. There are financial modelling courses -- www.amttraining.com |
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