Financial modelling

Risk models are a substitute for historical knowledge, because they tend to work with just three years' worth of data. But three years is not a long time in financial history. - Niall Ferguson

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  • Online, On-site, One to One
  • Academy Finance
  • Duration 1 week
  • Location London, Riyadh
  • Course Ref FIN-8

Developing practical and realistic business/financial models is critical in today’s value-driven organisation. As shareholders are increasingly concerned with the value of their investments, organisations are continually driven to ensure the optimum use of resources. Using Excel®, the Business and Financial Modelling process provides an effective tool for projecting the potential outcomes of various strategic and tactical initiatives. The ability to answer the question, “What are the potential results?” is crucial.

Here is your opportunity to sharpen your analytical abilities for more profitable decision-making. This comprehensive five-day programme takes you through the modelling process from start to finish. It provides practical examples and applications of modelling for both strategic and tactical executives.


  • Understand the significance of proper formulation and interpretation of models.
  • Apply statistical tools such as Exponential Smoothing, Regression, and Seasonality.
  • Translate specific business challenges into logically structured mathematical models.
  • Get the most from your software investment by creating more powerful models in less time.
  • Learn to use Excel® tools such as Solver, Goal Seeker, Scenario, and Spreadsheet Auditor.
  • Analyse time series data and develop relationships using exponential smoothing and regression analysis techniques.
  • Draw more realistic conclusions from the results of your models
  • Be able to determine product mix to optimise profits
  • Simulate the potential return on new capital investments
  • Project the probability of processes running within budget
  • Develop models to support product pricing and/or product continuance
  • Design budget models for departments, divisions, processes, or other entities

Day One

Introduction and Overview of Financial Modelling

Module 1 – Introduction and Overview of Financial Modeling

  • Define the Terms Model and Financial Model
  • Learn the 10 steps to create good Financial Models
  • The 12 steps to Improving traditional Financial Models
  • Use Flowcharting Techniques to improve your model

Module 2 – Time Value Models

  • Understand the Time Value of Money
  • Apply Time Value Concepts to Financial Models
  • Learn Why the Weighted Average Cost of Capital (WACC) Is Used in Capital Budgeting Models
  • Use Net Present Value (NPV) and Internal Rate of Return (IRR) Models in Making Capital Expenditure Decisions
  • Use the built-in functions for NPV, IRR, MIRR

Day Two

Financial Analysis Models

Module 3 – Financial Analysis Models

  • Use Break-Even Analysis in Financial Models
  • Use Scenario Analysis in Financial Models
  • Use Sensitivity Analysis in Financial Models
  • Compare These Approaches
  • Incorporate Sensitivity Analysis and Scenario Analysis in Financial Models

Module 4 – Lease v Buy Analysis Models

  • Learn the Fundamental Concepts of Leasing
  • Identify the Different Types of Leasing
  • Learn How to Analyse Leasing an Asset vs. Purchasing the Asset
  • Use Financial Models to Make Lease vs. Buy Decisions

Day Three

Financial Ratio Analysis Models

Module 5 – Financial Ratio Analysis Models

  • Identify Major Financial Ratios
  • Use Financial Ratios to Measure a Firm’s Financial Performance
  • Use “Peer Group” Analysis to Measure a Firm’s Financial Performance
  • Use Financial Ratios Models to Analyse a Firm’s Performance

Module 6 – Models for Valuation of Stock and Bonds

  • Learn How to Apply Dividend Discount Techniques
  • Calculate the “Intrinsic” Value of a Firm’s Common Stock
  • Rationalise the Difference between Intrinsic Value vs. Market Value for a Firm’s Common Stock
  • Learn How to Apply Bond Valuation Techniques
  • Calculate the Price and Yield to Maturity (YTM) of a Bond
  • Construct a Model to Evaluate Potential Bond Investments

Day Four

Comprehensive Models and Tools

Module 7 – Comprehensive Models and Tools

  • Using Tools like Solver & Goal Seeker
  • Developing a Financial Optimization Model
  • Identify the Types of Financial Activities That Can Be Connected in a Model
  • Build the Pieces of a “Connected” Model
  • Link the Pieces to Form a Multiple-Part Model

Module 8 – Putting It All Together

  • Understand How Models Are Created and Used
  • Deal with Problems in the Development and Use of Financial Models
  • Use Financial Models Effectively

Day Five

Case Studies

Start now and enhance your accounting and finance skills

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