One of the main things to learn about the equity market is that everybody is trying to predict what will happen in the future. This is done through a variety of ways – one of which is financial modelling and valuation. Financial modelling and valuation is a crucial skill to learn to carve out a career in the equity market or trade successfully in the market. In this article, we will talk about a premium financial modelling and valuation course which can help you become a master of this field. But first, let us take a quick look at what is financial modelling and valuation.
Financial modelling and valuation – an overview
To put it simply, financial modelling and valuation analysis is the process of creating a summary of a company’s earnings and expenses to be able to calculate the impact of a future decision or event. It is widely used in the field of finance. Analysts use it extensively to analyze Investing in fast growth stocks performance and anticipate the future movements of its price based on future events associated with the company or major events affecting the country’s economy or regulation.
It can also be used as a decision-making tool by company executives to estimate items about a proposed new project such as its cost, profitability, etc.
They are an integral part of strategic planning. Financial modelling also helps in estimating the valuation of a business or conducting a peer-to-peer comparison of businesses. Not only the equity market, financial modelling and valuation analysis is used extensively in various aspects of finance. It is also widely used by sales and marketing professionals to make predictions about future demand of products or services, estimate the utility of marketing campaigns and a range of other functions.
Types of financial models
A variety of financial models are available, each serving a specific purpose. They vary in complexity, form and type. It can be a one-sheet model or a multi-sheet model and can encompass only one function of a company or several functions. Here are a few financial models used commonly by analysts across the world:
1. Discounted cash flow-based valuation – One of the most common methods, discounted cash flow analysis helps us obtain a company’s current value, usually termed as ‘net present value’.
2. Comparable company analysis – As the name suggests, this model involves comparing similar firms within one industry.
3. Leveraged buyout model – Usually companies finance the acquisition of a firm through a leveraged buyout. The leveraged buyout model is used to estimate whether the company can sustain a large amount of debt.
Of course, these are only a few of the multiple modelling techniques available. Moreover, the purview of each of these modelling techniques extends way beyond what has been discussed above. So how do you master all these and more? The answer is simple. You can simply enrol for a financial modelling and valuation course and obtain formal training on the nuances of this field. Next, let us take a look at one of the best valuation modelling courses available in India today.
Elearnmarket’s Financial Modelling and Valuation Course
A part of NSE certification courses, this program is offered by elearnmarkets.com, the education subsidiary of StockEdge, the premium stock market app. A financial modelling certification is provided at the end of the course which has a validity of 3 years. This is a pre-recorded course enabes self-learning and contains 25 videos with more than 3 hours of content.
This online financial modelling course is conducted by Mr Anurag Singal, a Chartered Accountant and MBA from IIM Ahmedabad. Mr Singal has more than 12 years of experience in the field of financial modelling and has worked with prestigious organizations in India and abroad. Through this valuation modelling course, candidates will be able to learn the basic and advanced skills associated with this field of study. They will be able to learn the methods of raw data extraction and build profit and loss statements from them.
Candidates will learn the ways to prepare cash flow statements, understand the value of a company, the art of building valuation models, create models with multiple scenarios and other advanced concepts. By the end of this online financial modelling course, candidates will be experts in designing and building comprehensive financial models, creating dashboards using those models, using those models for business valuation and taking decisions based on analysis of those models. This course is suitable for a variety of candidates interested in this field.
It is ideal for MBA, CFA, CA and Commerce students who want to elevate their level of knowledge. If you dream to be a successful equity analyst, this course will be useful for you. Since this course involves a self-paced learning model, it is ideal for working professionals who want to obtain an edge over their competitors by learning a new skill. It is also useful for entrepreneurs since financial modelling provides a comprehensive understanding of various aspects of the business. When it comes to financial modelling and valuation, this is indeed one of the best courses you can enrol for. Check it out today.