Financial Modeling for Beginners: Get to Pro in Just 30 days

Link cash flow projections to the pnl statement and balance sheet, detail working capital, capex, and debt repayments, and project sources and uses through 2026.

Project a balance sheet to 2026 by modeling accounts receivable, other current assets, and fixed assets, linking working capital to the PNL and cash flow.

Fine-tune the linkages among the PNL, balance sheet, and cash flow, fix circular reference errors, and verify the debt repayment and cash balance reconciliation.

Calculate equity value using free cash flow to equity, projecting PAT, depreciation, working capital, capex, and debt movements, then apply discounting and terminal value to derive enterprise value.

Learn to compute the cost of equity using CAPM, combining the risk-free rate, beta, and market return to value cash flows to equity.

Learn to value a firm with FCFF DCF by discounting cash flows using cost of capital, compute terminal value, and adjust for net debt to obtain enterprise and equity values.

Compute the weighted average cost of capital by combining debt and equity costs. Use it to discount the free cash flows to the firm and determine enterprise value.

This lecture correlates fcfe and fcff valuations by comparing equity and enterprise values and implied multiples, showing that aligning the terminal multiple around 12 yields similar equity values near 190,000.

Advance from basic to advanced financial modeling by building on your foundation, exploring more scenarios, refining forecasting, and mastering valuation techniques used by professionals.

Use the alt-select method to copy numbers from a pdf into Excel, paste clean data, then type headers (e.g., income from operations) and verify figures for a quick financial model.

Learn to project a construction company's order inflow, order book, and sales over five years by building scenario-based schedules for order prospects, market share, and sales growth.

Learn to project costs and EBITDA by building a cost schedule, calculating gross profit from gross margin, and modeling fixed and variable costs across optimistic, realistic, and pessimistic scenarios.

Learn to build a linked, end-to-end financial model by skeletonizing the PnL, balance sheet, and cash flow, then connect depreciation, capex, dividend income, investments in subsidiaries, and debt schedules.

Develop a fixed asset schedule by projecting depreciation and capex across land, building, plant and machinery, and information technology assets, to derive net fixed assets and link to balance sheet.

Project net working capital by building a working capital schedule linking gross working capital and liabilities, using days of sales to reduce net working capital and inform the balance sheet.

Build a balance sheet skeleton by establishing asset and liability formulas, linking to the cash flow statement, and projecting cash, subsidiary investments, dividends, net worth, and debt schedule through FY26.

Fine-tune the balance sheet and project dividends by linking profit to a dividend schedule, projecting 45% of profit as the dividend and per-share amounts through 2026.

Fine-tune balance sheet line items, develop a debt schedule, and project cash flow by building a cash flow statement skeleton with capex, working capital, and subsidiary investments.

Build a debt schedule from the balance sheet, planning long- and short-term debt, estimating interest expense, and linking repayments to the cash flow and the profit and loss.

Prepare a cash and investments schedule to project balance sheet and treasury income. Allocate cash to liquid investments, corporate bonds, mutual funds, and fixed deposits, computing a weighted average return.

Build a linked three-statement model by connecting cash flow, balance sheet, and profit and loss. Incorporate debt repayment dynamics, depreciation linkage to fixed assets, and tax and subsidiary dividend inputs.

Develop a tax depreciation schedule to align tax outflows with free cash flow to equity, using income tax rates for land, building, plant and machinery, IT assets, and CapEx.

Compute free cash flow to equity and perform a FCF valuation by incorporating dividends, tax adjustments, and debt repayments, then estimate terminal value and assess IRR and NPV.

Apply data table-based sensitivity analysis to valuation outputs by exploring how cost of equity and terminal growth rate influence NPV-driven valuations, using what-if analysis.

Celebrate completing the journey from building your first financial model to mastering an advanced one, gaining skills to analyze businesses, make informed financial decisions, and advance your career.