In the corporate world, financial modeling is one of the most important elements used in making major business decisions. Financial models can advise you on the risk level related to implementing certain decisions. To reflect the finances and operations of a company, financial modeling is used to build effective financial statements. If you are also looking to build a career in financial modeling, have a look at the best financial modeling courses in Nagpur listed in this article.
Financial models are especially important for online businesses as they help in making quick effective decisions. Thus, it is no surprise that financial modeling has become one of the most important skills in the business world and more and more people are pursuing it.
What is Financial Modeling?
A financial model uses a given set of variables to forecast the future and is also often known as a predictive model. These models are quantitative and are mainly used to understand future performances by quantifying business expectations. To work with a financial model or build one, you need to have a thorough knowledge of all the different aspects that impact a business.
Some of these aspects are possessing an understanding of the market, the product, the industry as a whole, and the business environment. A financial model is a mathematical model built to represent a simplified version of the performance of a portfolio of a project, business, or any other investment or financial asset.
While creating a financial model, it is as crucial to use the correct expertise as it is to use the right calculations. This is because these models are only as good as the assumptions and information that they utilize. While a financial model is often objective and quantitative in its calculations, the assumptions used in the model are mostly subjective and depend on some level of expertise.
Since financial models are used across different industries, each industry has models that are specially designed for it. To learn more about financial modeling, register for one of the financial modeling courses in Nagpur mentioned in this article.
What Are The Uses of Financial Modeling?
Financial modeling is used for a variety of functions in the business. Let’s take a look at some of these functions.
Budgeting and Forecasting – For a stable future every company requires some financial planning to be done. For an effective plan, relevant data is required to support it, and this is where financial modeling is used to analyze the budgeting of the company.
Raising Capital and Company Valuations – To determine the value of a company, financial modeling is needed to examine the company’s financial statements and know its worth. In an IPO, investment bankers perform financial modeling to establish how many shares of the company will be sold. Not only this, but the same is required when raising capital through loans, venture funding, or other financing avenues to determine how much money is needed.
Finding Suppliers – The partnerships a business makes with its vendors or suppliers who supply various products and services are crucial to its success or failure. It can be tedious to source the correct suppliers without the help of financial modeling. With a financial model, you can determine the financial health of vendors and what they cost the business.
Allocating Capital – To know the best places to allocate capital, whether it is for investment in assets, projects, or operations, a financial model will help you know where the best returns are and where you’ll achieve the most business growth.
Credit Analysis – Lenders use financial models to determine a company’s creditworthiness so that they know if they will make a profit or receive their funds. Investors use these models to help them decide which company to give money to or invest in for the best returns.
Management Accounting – The evaluation of how decisions made by the management affect the company’s books is management accounting. Since these decisions have a direct impact on the company’s financial health, a financial model is used to help executives know the impact of their decisions by providing data such as returns on capital.
Types of Financial Models
Different financial models are used to fulfill different purposes across various industries. The most common models used in corporate finance are the following.
- 3-Statement Model – The most basic financial model is the 3-statement model that connects the balance sheet, cash flow, and income statement to set all the accounts connected.
- Discounted Cash Flow Model – This model is used for the valuation of a company based on Net Present Value (NPV).
- Merger Model (M&A) – This is one of the most complicated models. It is used to decide the pro-form dilution/growth of property and organization and is commonly used in corporate development and investment banking.
- Initial Public Offering Model (IPO) – These financial models are used to value businesses by examining the firm and making opinions about how much investors are likely and willing to pay for the company.
- Leveraged Buyout Model (LBO) – In a leveraged buyout debt is used as the primary cause of payment. Financial models analyze these transactions to let a private equity firm borrow as much as it can from lenders.
- Sum of the Parts Model – Various DCF models are added together into a single model to determine a company’s divisions.
- Consolidation Model – Consolidation prices of multiple business units are added together into a particular model to create a new merger worksheet.
- Budget Model – This model is used in financial planning and analysis to establish the budget for the coming years. This model is heavily reliant on the income statement.
- Option Pricing Model – This model is heavily focused on mathematical formulas and is used by security traders and market makers looking to turn a profit.
- Forecasting Model – This model is used in financial planning and analysis to make predictions about budgets.
Top 10 Financial Modeling Skills
The financial modeling courses in Nagpur will teach you the following skills.
- Accounting skills – To build financial models, you should have a solid understanding of fundamental accounting concepts, the company’s financial statements, and policies.
- Excel skills – Excel is the most important tool in financial modeling so having a strong understanding of formulae and functions and keyboard shortcuts in Excel helps perform calculations and save time.
- Knowing formulas to link the three financial statements – Income statement, balance sheet, and cash flow statement are the three statements that form the foundation of a financial model.
- Forecasting skills – To build the future performance of a company, you need to have forecasting skills that include both scientific methods as well as qualitative factors.
- Problem-solving skills – To build a financial model, you need to think in an organized and logical manner so that the financial model is clear and easy to follow.
- Attention to detail – To be able to keep track of the various formulas, numbers, and functions you should have a keen eye so that the financial model is error-free.
- Simplification of complex information – You should be able to distill large amounts of data into a simple and easy-to-use format.
- Design skills – You need to have the art of designing good presentations to show the results of your financial modeling and analysis and get your point across in a clear visual manner.
- Presentation skills – Can create an effective pitch book or presentation that will showcase and communicate the result of your financial model to the end user, client, or executives coherently and logically.
- High-level strategy vs detail – The ability to zoom in to minute levels of detail and be able to quickly zoom out to understand the high-level strategy and make sure that neither part is missed.
Career Prospects in Financial Modeling
After studying financial modeling courses in Nagpur, you’ll want to look for a job. These are the following sectors you will have the opportunity to work in.
- Equity research – You’ll be sending reports obtained through financial modeling to your clients on whether they should invest or not.
- Investment banking – You’ll use financial models to establish a company’s value and help in decisions regarding raising capital or mergers and acquisitions.
- Corporate development – You’ll work as counterparts of investment bankers. You have to be excellent in financial development and work together with investment bankers on transactions.
- Financial projections for startups – At any startup, a financial model is built that is to create startup projections of how the company will behave in the future. If you are in charge of this job, you’ll have to perform cash flow valuation and you may use a financial projection template to calculate startup expenses, payroll costs, balance sheets, and more.
- Real estate financial modeling – Real estate developers will hire financial modelers who will create models to determine the profitability of a real estate project that the real estate developer is interested in investing in. For this, you’ll have to learn real estate statement models.
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Top 5 Financial Modeling Courses in Nagpur
We have compiled a list of the 5 best financial modeling courses in Nagpur based on the curriculum, reviews, mode of teaching, and certifications.
1. Financial Modeling Courses in Nagpur – IIM SKILLS
IIM SKILLS is well-known for providing world-class education across various domains. The Financial Modeling Course by IIM SKILLS has been designed by industry experts who excel in the finance sector. It is a 3-month live online course with a guaranteed 2-month internship with partner firms.
The course curriculum is a good fit for fresh graduates, MBA, CA, engineers, and finance department professionals. With 4 live projects and multiple practical assignments, you’ll learn everything there is to know about financial modeling. The financial modeling certificate provided by IIM SKILLS is recognized by the MSME government of India.
Unique Features of the Course:
- With an online mode of teaching, access this course from anywhere in the world.
- Both weekday and weekend batches are taught as well as backup classes are available.
- The course is taught by industry experts who work at a top company in the finance sector and bring real business problems as examples.
- Get easy access to all the course material and class recordings in one place through a learning management system.
- The course features a comprehensive curriculum that covers all the bases of financial modeling and focuses on both theoretical and practical skills equally.
- Before you decide to register for the course, opt for the free demo session and see if the course will meet your expectations.
- Get complimentary services such as job referrals and post-training reinforcement.
- Module 1 – Master Excel at the basic and advanced level
- Module 2 – Learn financial statements and fundamental accounting concepts
- Module 3 – Understand different types of ratios and KPI analysis
- Module 4 – Get introduced to all the basics of financial modeling
- Module 5 – Learn how to design 5 different types of financial models
- Module 6 – Understand to perform a business valuation
Course Certificate: After the completion of the course, pass the mandatory exam with at least 50% to earn the certificate.
Course Fees: ₹ 39,900 + 18% GST
Also Read: IIM SKILLS Financial Modeling Course Review
2. Financial Modeling Courses in Nagpur – Wall Street Prep
Wall Street Prep provides the Financial & Valuation Modeling Certification Program as a premium package. This program is used by top business schools and financial institutions as well as top investment banks to train their professionals. If you are a professional or a student pursuing a career in private equity, equity research, corporate finance, or investment banking, this program is for you.
Using best practices and real case studies, you’ll learn how to build different types of financial models in Excel. This course is self-paced, and you’ll require around 70-90 hours to complete it. To enroll in this program, you are required to be proficient in Excel and have some basic knowledge of accounting.
- DCF Modeling
- Financial Statement Modeling
- Trading Comps Modeling
- M&A Modeling
- LBO Modeling
- Transaction Comps Modeling
- Building Buyers’ Lists
- Bonus courses include topics such as debt capital markets, private equity deal process, project finance, asset vs stock sales, purchase price allocation, MLPs, and much more
Course Certificate: Take the certification exam within 24 months of enrollment and score above 70% to receive the certificate.
Course Fees: ₹ 40,210
3. Financial Modeling Courses in Nagpur – Wharton Online
Wharton Online, a division of the University of Pennsylvania provides the business and financial modeling specialization that teaches financial valuation and modeling skills required to make informed financial and business decisions.
The specialization contains 4 core courses and a capstone project that allows students to apply all they have learned to real-world problems. Each course can be completed in 3 to 4 weeks at your convenience. The 4 courses introduce the students to modeling techniques, spreadsheet models, company valuation, common applications for investment analysis, and forecasting.
This specialization is taught by senior Wharton professors who have published their work in renowned journals such as Operations Research and Management Science.
- Course 1 – Fundamentals of Quantitative Modeling: Learn to create quantitative models for your enterprise or business.
- Course 2 – Introduction to spreadsheets and models: Learn how to use all the features of spreadsheets to map your data and predict data you may have in the future.
- Course 3 – Modeling Risk and Realities: Reflect complex realities through quantitative models, create predictive models, and include the scope for risks and uncertainties in your model.
- Course 4 – Decision-Making and Scenarios: Learn how to model common financial and business scenarios and structure complex problems to drive logical insights about alternatives.
- Course 5 – Business and Financial Modeling Capstone: Build and implement quantitative models using data from Wharton Research Data Services.
Course Certificate: Complete the course and get the capstone project approved to earn the certificate.
Course Fees: ₹ 6363/month
Look for the other recommended courses
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4. Financial Modeling Courses in Nagpur – CFI
CFI offers one of the best financial modeling courses, the Financial Modeling & Valuation Analyst course. This course will teach all the skills needed to perform practical financial analysis. The certification is designed to teach you budgeting and forecasting processes, and financial modeling skills and enhance your competency levels across the entire finance and accounting spectrum.
The entire program can be completed in around 4 – 6 months and consists of 12 core courses and a minimum of 3 elective courses. You can take the optional prep course before starting the program to review the fundamentals.
- Accounting – financial statements and fundamental accounting principles
- Excel – data tables, pivot tables, formulas and functions, and keyboard shortcuts
- Finance – capital raising process, capital investment, returns, profitability, efficiency, and value of a business
- Financial Modeling – 3 statement financial model, multi-year forecasts for cash flow, income statement, and balance sheet, scenario and sensitivity analysis
- Valuation of the – weighted average cost of capital, DCF model, valuation methodologies, and comparable company and precedent transaction analysis
- Budgeting and Forecasting – the impact of variance analysis of financial statements, financial forecasts
- Presentation and Visuals – insightful dashboards, charts, tables, and graphs in Excel, and design impactful presentations
- Strategy – analysis of internal competencies and external forces, different levels of company strategy
Course Certificate: Complete the required courses and pass the final exam with a minimum grade of 70% to earn the certificate.
Self-Study – ₹ 40,000 / year
Full Immersion – c 68,200 / year
5. Financial Modeling Courses in Nagpur -Financial Edge
The last course in the list of the 5 best financial modeling courses in Nagpur is the Modeler Certificate by Financial Edge. This skills certificate introduces you to building models and the fundamentals of financial modeling. With 56 practical exercises, learn all the core skills required for numerous financial roles across private equity, investment banking, sales and trading, and equity research. Complete the course at your own pace as you get lifetime access and direct instructor support.
- Introduction to Modeling – Fundamentals of financial modeling
- Three statement modeling with iterations – Integrate and model the three main financial statements
- Three statement model editing – learn timesaving shortcuts, and how to edit financial models
- Building a model with cash sweep – Covering debt and interest calculations, historic data, cash sweeps, circularities, revolvers, and more.
- Checking a model for errors and integrity – Error-checking techniques, fundamentals, prevention methods, keyboard shortcuts, and more.
Course Certificate: Complete the 5 courses and pass the final exam to earn a LinkedIn shareable certificate.
Course Fees: ₹ 14,200
Frequently Asked Questions
Q1. What are the career opportunities after studying financial modeling?
If you pursue a course in financial modeling, you can work in various fields such as equity research, investment banking, real estate financial modeling, corporate development, etc.
Q2. Which course is the best in the list of financial modeling courses in Nagpur?
IIM SKILLS is at the top of the financial modeling courses in Nagpur as it not only provides live online classes with instant doubt resolution but also gives the opportunity of a 2-month guaranteed internship in finance companies that will help you develop your practical skills.
Q3. What are the uses of financial modeling?
Financial modeling is used by businesses for budgeting and forecasting, finding suppliers, allocating capital, company valuation, management accounting, and credit analysis.
Q4. What are some important financial modeling skills to have?
As a financial modeler, you should be proficient in accounting, Excel, the three main financial statements, and forecasting, and have skills such as problem-solving, designing, presentation, and attention to detail.
Financial modeling is an exceptional tool for financial analysts, investment bankers, or equity research professionals. Businesses across all industries are using financial modeling to forecast their financial statements, for company valuation, capital allocation, merger and acquisition decisions, etc.
Therefore, demand for professionals with knowledge of financial modeling is increasing rapidly and job opportunities are widely available for those who want to pursue a career in financial modeling. In this article, we listed some of the best financial modeling courses in Nagpur that can help you start your financial modeling career and prepare you to work on real-world business problems.