Are there any online resources for financial modeling?
I am interested in learning more about financial modeling and valuation. #financial-modeling #career #finance #online-learning
3 answers
Thomas’s Answer
Jennifer - to follow Zachary's response. At the following investopedia link https://www.investopedia.com/university/dcf/, you can follow a step by step process to gain a better understanding of the DCF Model. Additionally, there are multiple online courses that you can use to teach yourself how to construct a full financial model such as wallstreetprep.com.
Zachary’s Answer
Jennifer - to follow onto Christopher's response, here are some key words to try searching for online to find existing valuation models that you can explore:
1) "Discounted cash flow model" - often used to value businesses or assets with distinct future cash flows, like debt instruments, by measuring the present value of future cash flows
2) "Market comparables approach" - often used to value private companies by applying certain metrics from comparable public companies (e.g. market capitalization as a multiple of revenue)
3) "Option pricing model backsolve" - often used to value private companies using the price paid for a particular class of share (e.g. price per share by investors in a Series C preferred round of financing) to infer the total equity value of the company based on the relative preference of that particular class of share
The models discussed above are used frequently by companies when determining what to pay when buying another company, or when valuing investments made into the equity of private companies whose shares are not traded publicly.