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Flashcards in Financial modelling Deck (3)
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1

What is a financial model?

A financial model is a forecast of a companies expenses and income formatted in a spreadsheet.

2

What are the 4 key things a financial model tells you?

1. Internal Rate of Return (IRR)
2. Equity multiple
3. Profit
4. Amount needed to invest.

3

What are the 5 rules of financial modelling?

1. use clean formatting
2. keep assumptions separate
3. never hardcore numbers instead of formula
4. never hardcore assumptions into formula
5. keep the formula the same along a row.