A brief overview of Financial Modeling - Aspire Now Global

 Planning is the first essential element of an organization’s vision; it comprises various steps. The first step is formulating the qualitative and quantitative expansion, sustenance, and fundraising plan. The qualitative part of it contains the scoping of products and services, market research, and validation. However, the quantitative aspect includes financial planning, projections, and budgeting. Financial Modeling usually helps model this quantitative aspect.

A Financial Model is a quantitative exercise usually involving MS- Excel, used to map unit economics of each part of an organization, along with product lines that might be added into the future to project an expected revenue base, costs involved and valuations, if required.

There are various approaches to this: -

1. Top-Down Approach- Under this approach, the financial analyst would start with looking at market players, shortlisting the KPIs and industry scenarios. Post that he/she would be able to proceed further on mapping company-specific metrics and come up with the valuations.

2. Bottom-Up Approach- Financial Analyst would approach the model with company-specific elements, map the growth rates and revenues by taking into consideration the managements’ perspective and past trends of the company. Post that, he/she approaches the industry-specific metrics to look at relative valuation.

There are various types of financial models to suit the company’s needs’ tailored needs. Along with that, there are multiple steps involved in the same. In order to learn more, visit Valuqo Capital Financial Modeling course outline at https://www.aspirenowglobal.com/ .