A practical insight into Financial Modelling
What do we mean by financial modelling? Financial modelling is a term used to describe the process of forecasting revenues and costs of each income segment of the organization along with a viewpoint on the valuation of an organization. Financial Modelling is essentially utilized by the people in the finance industry to value potential mandates for investment, measure the success of their portfolios and benchmark their investment’s performance against the competitors. Modelling not only helps find the valuation but also understand the feasibility of a financial instrument this, in turn, helps money/portfolio managers recommend appropriate opportunities for investment to the clients. There is a reason why since the inception of excel, the financial industry has heavily relied on financial modelling. Its importance has remained constant and with the evolution of the technology has jumped platforms nowadays with the evolution of technology. Here’s how models fail and how to im...