Financial models, mostly excel based, try to depict the financial development of a company.
Often financial models are built to see the impact of a merger/ acquisition on the financials of a company as well as the valuation of the target company to be acquired, implying that you will learn how to calculate the share price of a company to find out, if a company's share maybe under- or overpriced.
Throughout the development of this blog, bruceinvests will help you to understand the function of an income statement, cash flow statement and balance sheet as well as their interactions.
You will learn how to use your understanding of the three financial statements to built valuation models including discounted cash flow models (DCF), merger models as well as leveraged buyout models (LBOs).
To build financial models, you need to have a solid understanding of the financial statements first.
Don't panic, we'll do everything step-by-step.