Financial Modeling And Equity Valuation

Financial Model is a mathematical model designed to represent the performance of a firm\'s financial asset. Model is basically is used to calculate, forecast, or estimate financial numbers. Financial Modeling relates to accounting and corporate finance applications usually involves the preparation of detailed company-specific models used for decision-making and financial analysis purpose.

Today, if you Google the term \"Financial Modeling\" you will get millions of hit.

Financial Modeling has become the most important skill-set for the aspiring finance professionals.

A good financial modeler must know how the three financial statements (the Income Statement, the Balance Sheet and the Cash Flow) work and linked together. They must understand corporate finance theory and be able to apply it to the valuation process. They must possess industry-specific knowledge and must think analytically and last but not least, must have strong Advance Excel skills.