Financial Modeling and Valuation

Financial Modeling and Valuation is a core discipline in corporate finance focused on quantitatively assessing business performance and worth to inform strategic decision-making. It involves the practice of building a dynamic, spreadsheet-based summary of a company's past and projected financial results (the model) to analyze the impact of different scenarios and assumptions. The outputs of this model, particularly projected cash flows, are then used as key inputs for valuation techniques—such as Discounted Cash Flow (DCF) analysis, comparable company analysis, and precedent transactions—to estimate the intrinsic economic value of a company or asset, thereby guiding decisions on mergers and acquisitions, capital raising, and investment opportunities.