Master
2021/2022
Financial Modelling in a Firm
Category 'Best Course for Career Development'
Type:
Elective course (Strategic Corporate Finance)
Area of studies:
Finance and Credit
Delivered by:
School of Finance
Where:
Faculty of Economic Sciences
When:
1 year, 3 module
Mode of studies:
offline
Open to:
students of one campus
Master’s programme:
Strategic Corporate Finance
Language:
English
ECTS credits:
3
Contact hours:
32
Course Syllabus
Abstract
The Financial Modelling in a Firm Course is aimed to provide students with the skills necessary for applying excel as a tool to provide models to make corporate financial decisions.
The course explores the best practices of financial modelling according the existent modelling guidelines. Students will learn how to build a financial model, how to create a correct system of financial statements and forecast the changes in firm’s future cash flows under different scenarios. Using practical cases, you will find out how to build financial models that are flexible, appropriate, transparent and structured and correspond to the specific financial question. You will also discuss how to make a model user-friendly and audit the quality of the models. Finally, you will get acquainted with the methods of model presentation to the different types of audience.
Recommended Prerequisites:
Corporate Finance-1,2, International Financial Reporting Standards
Learning Objectives
- How to use financial models in decision support in corporate finance
- To learn best practices of model's design and planning
- The techniques of buidling flexible and intuitive model in Excel
- To learn practices of model testing and auditing, including designing robust and transparent formulae
- To learn how to deal with circularity in the model
- How to incorporate sensitivity and scenario analysis, uncertainties and risks.
- Practice to use VBA macros and ModelRisk Excel add-on to conduct sensitivity and scenario analysis
- The ways of model presenting: dashboards and charts
- How to use valuation techniques and estimate intrinsic value of equity using finanicla models
Expected Learning Outcomes
- Be able to apply models for financial decision-making
- Be able to explain how the valuation technics could help in financial modelling
- Be able to create a template in Excel, that will allow building a model that is flexible and intuitive
- Be able to incorporate scenario analysis in forecasting firm’s future cash flows
- Be able to check that the model is correct
- Be able to audit the model
- Be able to present a model using a dashboard, charts, etc.
Course Contents
- Introduction to financial modelling and using models in decision support
- Model Design and Planning
- Modelling of elements of financial statement
- Model building, testing and auditing
- Forecasting of key articles of profit and loss account
- Forecasting of key items of balance sheet
- Forecasting of key items in cash flow statement.
- Basics of valuation. Using flnancial models to obtain intrinsic value of equity shares
- Excel functions and functionality
- Complex modelling. Model presentation techniques
- Sensitivity and scenario analysis. Risk-adjusted financial modelling with ModelRisk
