Financial modeling is one of the most highly valued, but thinly understood, skills in financial analysis. The objective of financial modeling is to combine accounting, finance, and business metrics to create a forecast of a company’s future results.
Financial modelling is an important aspect of financial analysis. It combines forecasting, accounting, and business metrics to represent a business’s future portfolio accurately.
There are different types of models, namely:
📌Discounted cash flow analysis (DCF model)
📌Leveraged buyout (LBO)
📌Mergers and acquisitions (M&A)
📌Sensitivity analysis
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