Financial Modelling and Valuation Practice Exam

Finance professionals often deal with extensive numerical data, and effectively managing such data involves organizing and structuring it in a meaningful way for senior management's decision-making processes. This necessitates the creation of robust and dynamic financial models that enable accurate analysis of historical data and the projection of financial performance.

In this program, participants will acquire skills to develop efficient, robust, and adaptable financial models. They will learn to report and analyze historical data, prepare future projections, and present integrated financial statements and key ratios in a logical, concise, and impactful manner. Through specially designed examples, candidates will gain insight into different approaches for computing financial parameters.

Additionally, the course covers basics of business valuation, including various valuation methods and the interpretation of valuation results. Participants will deepen their understanding through comprehensive case studies that integrate all course modules. By the end of the program, candidates should be proficient in constructing well-structured, dynamic financial models and conducting independent business valuations.

Who should take the exam?

The exam is for:

• Finance professionals 
• Finance managers
• Corporate finance, private equity and M&A professionals
• CA, FRM, MBA finance, CFA course candidates
• Self-employed finance professionals
• Graduates

Course Outline

The exam can cover the following topics:

• Financial Modeling Basics
• Introduction to Financial Modeling
• Applications of Financial Models
• Financial Modeling Approaches (Top-Down vs Bottom-Up)
• Financial Modeling Best Practices
• Financial Statements & Analysis
• Understanding the Income Statement (Profit & Loss)
• Constructing and Analyzing Cash Flow Statements
• Breakdown of the Balance Sheet
• Financial Ratio Analysis (Liquidity, Solvency, Activity, Profitability)
• Discounted Cash Flow (DCF) Valuation
• Estimating Free Cash Flows (FCFF & FCFE)
• Cost of Capital (WACC) -
• Cost of Debt & Cost of Equity
• Capital Asset Pricing Model (CAPM)
• Relative Valuation Techniques (Trading Multiples & Precedent Transactions)
• Scenario Analysis & Sensitivity Analysis
• Modeling for Mergers & Acquisitions
• Using Excel for Financial Modeling (Formulas, Functions, Shortcuts)
• Time Value of Money (TVM) Concepts
• Introduction to Financial Markets