Financial modeling is one of the most well-regarded and marketable skills in the finance sector, kudos to you for deciding to learn it. This article contains the list of the 7 best financial modeling courses, which helps you choose the right course from the crippling amount of options, along with an introduction to financial modeling and its usage.
Introduction to financial modeling
For organizations, financial modeling is the process of making informed assumptions about their financial standing based on the data of past performance, while also considering the effects of various events. Financial modeling is an important aspect of the finance practice of businesses, which plays an important role in financial decisions. It enables executives, creditors, and shareholders to understand the implication of various monetary decisions in numbers. Financial models are extensively used by companies for forecasting the returns on particular investments and to draw budgets for projects.
One of the key functions of financial models is to aid companies in decision-making. Organizations have to make various types of decision, hence using different types of models, which requires different data or inputs. Profitability planning, liquidity planning, credit planning, valuation of companies, etc, are a few different purposes for which financial modeling is used. The organization uses financial models on a day-to-day basis, for several crucial decisions. In simple terms, financial models present answers to ‘what-if’ scenarios of various decisions. Despite being used extensively by organizations it has its advantages and disadvantages. As a student of finance or a working professional, interested in learning financial modeling it is important to understand both.
Advantages of financial modeling
Financial models are a crucial part of the finance sector because of their multiple advantages for business, some of them are:
- Financial models help in getting an in-depth understanding of business, as in making a financial model analyst has to study all the factors which will affect the business in different aspects. The analyst also has to consider various internal and external factors that affect the business. Because of these factors, not only the creator but also the user get an in-depth understanding of business.
- Financial model aid businesses in building their funding strategies, by putting the complex monetary decision in simple numeric form. Financial models also help in understanding the cash flow situation of the company and the number of debts they would need and interest on them.This strategy is especially important for start-ups as they have uncertain revenues.
- Estimating the correct valuation of thecompany is another important function of financial modeling. it helps the company to understand its true worth in financial terms, by using discounted cash flow models. It helps executives to understand the financial understanding of an organization at different pointsin time.
Financial modeling also has some disadvantages as well, like it is a time-consuming exercise, to make an excellent financial model analyst needs to collect various kinds of data, consider the many underlying factors, and test models multiple times to eliminate all kinds of irregularities. They also have to make the model user-friendly and easy to understand. Another disadvantage of the financial model is that it can only estimate financial possibilities, not other factors like company cultures, understanding between employees, etc.
After learning financial modeling skills there is a plethora of career opportunities for a candidate in the finance sector, some of the best career options are mentioned below:
- Financial analyst: the main function of a financial analyst is to evaluate the company’s performance thoroughly and develop a long-term strategy, to maximize the profit. They also analyze the performance of other investments made by the organization, to provide better investment advice to the organization.
- Investment banking analyst: this job profile comprises various roles within the company, like researching past data via financial statements, buildingnew financial models, and analyzing old ones, they also have to keep them updated with financial market development for a better understanding of the company’s financial standing.
- Finance managers: finance managers prepare, forecast, and monitor the budget of a particular project or a company as a whole. They are also in charge of monitoring the progress of the project and ensuring its timely completion.
- Equity research analyst: equity research analysts mostly deal with thorough research of the stock market and predict its behavior, to aid individuals and organizations to make sound investment decisions related to purchasing and sales at any particular point of time. It is one of the job profiles that demand skilled professionals most.
7 best financial modeling courses
Here is the list of the 7 best financial modeling courses available in India:
1. IIM SKILLS
This Delhi-based institute offers various upskilling courses for students and working professionals, in the online medium, IIM SKILLS aims to provide world-class training for practical skills at an affordable price, content writing master course, technical writing course, BAT course, GST Practitioner course, and of course financial modeling course.
Their financial modeling course is also considered one of the best financial modeling courses as it is 100% practical course. It includes both lectures and practical assignments. Their course curriculum includes an introduction to excel (basic to advanced level), financial statements, and accounting concepts, ratio/ KPI analysis, you’ll also learn various types of financial modeling along with business valuation.
Apart from above mention skills they also assist their student in learning real-world skills like communication skills, critical and analytical skills, problem-solving skills, and so on. One of the most unique features of this financial modeling course is a guaranteed internship. If you are fresher then this could be a deal breaker for you in the industry.
2. The wall street school
Wall street school is an institute that provides training in finance and accounting domains. They offer various training programs and courses like financial modeling and valuation course, ACCA coaching, CFA coaching, CMA coaching, FRM coaching, and so on.
Their financial modeling and valuation course is a practical training program, which aims at getting their student’s jobs ready. Their course curriculum is concise and updated with recent developments in the field and real case studies. They offer financial modeling courses in three modes namely: classroom training, live online classes, and online self-paced training. One of the special features of this course is that the process of their placement is quite transparent, as it provides contact details of previously placed candidates and also they charge 60% of their total fee only after the candidate’s successful placement.
CFI is one well-reputed institute teaching real-world skills to candidates in the finance domain. They offer various courses like financial modeling and valuation analyst (FMVA) course, commercial banking & credit analyst (CBCA), capital markets & securities analyst (CMSA), business intelligence & data analyst, etc.
Their financial modeling and valuation analyst course aids students in mastering financial modeling and improving their overall understanding of the entire accounting and finance domain. This training program consists of 38 courses, from which candidates get to choose 14 courses to complete and earn their certification. They also give their students hands-on projects and various tools and techniques, that help students in making world-class financial models.
FinLadder is a relatively new educational organization offering financial modeling courses, but it deserves to be on this list of the 7 best financial modeling courses because of its quality and affordability. Their financial modeling and valuation course come with a guaranteed internship and it is delivered by the instructor who is an associate at Goldman Sachs. Candidates will get access to their free basic to advance excel course and they also will be constantly guided by mentors throughout the course.
5. NSE Academy
NSE academy offers various courses in the banking domain, financial services, financial markets, and financial literacy. They offer hundreds of courses in the finance domain relating to stock market investing, personal finance, trading, wealth management, financial modeling, etc.
Their certification in financial modeling gives candidates an understanding of basic along with their practical understanding. This course curriculum includes basic theories and practical applications of value analysis, strategy analysis, trading and transaction analysis, and much more. This course is apt for MBA finance, CFA, CA, and Commerce students, or for any candidate looking to make a career in equity research and related field.
Another financial modeling program worth mentioning in this list of the 7 best financial modeling courses in India is Coursera’s business and financial modeling specialization. The University of Pennsylvania, a school that belongs to the Ivy League, is the provider of this financial modeling course.
Since the course is entirely online, you may enroll and immediately begin studying at your own pace because the deadlines are flexible. If you follow this course at the recommended pace of two hours each week, it will take you about six months to finish. No prior expertise is necessary to enroll in this course, as it is beginner-friendly.
To give students a comprehensive understanding of financial modeling, the financial modeling course curriculum at NSE contains several case studies as well as an introduction to basic to advanced tools and methodologies. Additionally, the course’s core material will introduce students to spreadsheet models, forecasting, firm value, and other topics.
7. IMS Pro School
It is yet another prestigious institution in India that provides financial modeling courses. Through live online classes and classroom programs, it has already trained thousands of people. You will receive instruction in excel proficiency, equity research modeling, financial statement, and ratio knowledge, and much more in addition to financial modeling. You will also receive a session on resume-building and soft skill development in addition to this course.
One of the most in-demand skills in the finance industry is financial modeling because it is crucial to businesses. Anyone who works in or aspires to work in the core finance sector will benefit greatly from learning this ability. This article includes a list of the top educational institutions in India that provide the top 7 financial modeling courses, as well as all the fundamental knowledge needed to comprehend financial modeling. Hope this article is helpful to you.