Top 5 Online Financial Modeling Courses for Beginners
The advent of the digital era in this 21st century has paved the way for industries to optimize their decades-old distinctive modus operandi through specialized software tools present today. Financial Modeling is one such tool for predicting the future financial performance of a corporation. Such businesses require a sophisticated mathematical model that can take into account the impact of numerous variables. A financial model is just a more complex form of calculation that aids in planning and making wise financial decisions. This article will cover some of the best financial modeling courses for beginners looking to explore this vast domain.
What is Financial Modeling?
The technique of estimating the financial performance of a project or corporation using all necessary variables, growth and risk assumptions, and analyzing their effects is known as Financial Modeling. An income statement, balance sheet, cash flow statement, and accompanying schedules must be prepared to anticipate a firm’s financial potential. These documents are frequently based on historical performance data and company projections (referred to as a 3 statement model).
Types of Financial Models:
Some types of financial models are listed below.
- Discounted Cash Flow (DCF) Model
- Three Statement Model
- Initial Public Offering (IPO) Model
- Merger Model (M&A)
Why Is There a Need for Creating Various Classes of Financial Models?
For various types of decisions, many types of models are developed, such as:
- Profitability Planning:
The most common application of financial models is to enhance a business’s everyday operations. Companies use these models to decide how to distribute resources most profitably. Generally, Financial Modeling courses for beginners aim at teaching them this basic necessity of planning, since it is a commonly required trait needed to be present.
Analyzing a company’s profitability is different from capacity planning since the latter only considers operational considerations. However, there is a holistic view of profitability analysis and planning. In principle, such a model allows a company to determine the optimal combination of products for maximum profitability. Therefore, their complexity is low because only assumptions about the immediate future are made.
- Liquidity Planning:
Businesses all over the world are heavily indebted. To enable quicker expansion, this is done. However, as debt increases, so does the risk of default. There remains a tantamount risk of bankruptcy if a company does not manage cash flow properly. This situation demands financial models that allow companies to track their solvency.
The model takes into account the valuation of currencies, loans, and rates of interest that may have call options, which can put pressure on the company’s finances in the short term. Enterprises can simulate extreme economic conditions to see if they can continue to be resolved if it turns into reality.
- Credit Planning:
Transactions are primarily credit. Companies need to provide credit if they want to increase sales. Nevertheless, there always remains the risk of default when lending. Therefore, companies need to determine if they are willing to give credit to a third party. If so, the next question arises as to how much credit they are willing to give.
For this, some financial models help businesses make this decision. Such a model uses information from financial data publicly declared by rating agencies and their customers to determine the amount of credit they will give them.
Often, Financial Modeling courses for beginners utilize this public data to give an insight into real-world scenarios. The limitation of these models is that they only work if the customer publishes financial data or is evaluated by a rating agency.
- Corporate Valuation:
Investment banks and private equity firms also use complex financial models to reach corporate valuations. Such a model is very complex and takes into account multiple variables. These models tend to draw attention across various newspapers and media houses. However, many of these models are built in-house.
Such financial models cannot be constructed using a simple spreadsheet or simple programming, as there are multiple variables to consider. There are specialized software companies that create the tools needed to make this type of decision.
- Financial Instruments Valuation:
Finally, there is a financial model created for the valuation of complex financial instruments such as futures, options, and bonds. With each passing day, financial products are becoming more and more complex. Additionally, companies need to derive fair value automatically and on time. These financial models serve as the backbone of trending technology-based trading systems.
These models can quickly take into account changes in the underlying variables and determine fair value within minutes. This value is then entered into the trading algorithm for traders to decide on buying or selling such stocks when it fares below the calculated fair value. Paying for human traders is an expensive offer for many trading desks.
This is because traders charge high fees. The financial model, on the other hand, helps automate the entire process and saves fees. Companies are trying to develop a financial model that allows them to make decisions like experienced traders. But this is not possible so far. With the advent of machine learning and artificial intelligence, this may not be such a big dream in the future.
Also Read: What is Financial Analysis and Forecasting
Roles and Responsibilities of a Financial Modeler
As a finance professional, you would be expected to deal with sizable chunks of numerical data. Thus, the key to properly processing such data is the ability to organize and structure the data in a meaningful way to help senior management make decisions. This requires the creation of robust and dynamic financial models that enable accurate and efficient analysis of historical data and good forecasts of financial performance.
Financial Modeling courses for beginners equip them with theoretical knowledge and software tools to create such models. One should not underestimate the importance of financial modeling skills, a deep understanding of valuation methods, and the ability of financial professionals to evaluate results.
In a financial role, one should be efficient in reporting and analyzing historical data, making future predictions, and presenting integrated financial statements, financial indicators, and results logically.
What Mode of Learning Should You Opt for Online or Offline?
There are plenty of Financial Modeling courses for beginners or working professionals. It all depends on an individual’s current job status, preferences, and availability. But our recommendation for you is to enroll in online financial courses. They are much more flexible, save you from the hassle of traveling and institutes help you clear your doubts just a call away.
Job Profiles Which You May Do After a Financial Modeling Course
Large corporations typically benefit from the mergers & acquisitions, and capital raising activities carried out by the corporate finance division. Investment bankers consult with the corporate finance team on a variety of transactions, including M&A, reorganizations, divestitures, project financing, and asset purchases, among others.
Financial Analysis for Credit Analysts
Jobs can also include restructuring a department inside a corporation and putting credibility, liquidity, and debt servicing into consideration, as well as working as a credit analyst for credit rating agencies. Your expertise as a credit analyst in a certain business or field can be greatly rewarded by the position. This role can be taken up after having completed any Financial Modeling courses for beginners.
Personal Finance & Stock Market
People today want to make decisions based on more information than just what they learn from their friends and family. For those who wish to develop the requisite fundamental analysis abilities and have a long-term investment horizon, the Financial Modeling & Valuation Program can be a game-changer. Candidates can choose financially sound businesses and use their finances appropriately with the aid of this tool.
Advance your skills and career opportunities with high-rated Financial Modeling Courses in Gurgaon
Factors to Consider while Choosing Financial Modeling Course
Those experienced in the financial industry are adept at choosing courses that suit their needs. But choosing Financial Modeling courses for beginners can involve some hassle since they are not familiar with terms or tools that are required or mentioned in a course.
Firstly, one should check if the course is updated in terms of current industry requirements. If you’re a beginner, try to opt for institutes where there is a dedicated job placement cell, since you’ll be new to this field, and it might take you some time to learn the nuances of this field. Thus they can recommend your profile when a company recruits.
Secondly, gain insight into your institute of interest by conversing with people who have formerly enrolled for their course. In this way, you may get an idea of the progression of their course. This article recommends some Financial Modeling courses for beginners as well as people with experience.
A Curated List of Institutes Offering Financial Modeling Courses
1. IIM Skills: Financial Modeling Master Course
About
IIM SKILLS, founded by Vaibhav Kakkar in 2015, is an online training institute, currently providing courses in digital marketing, content writing, technical writing, finance, and CAT coaching, and is considered Asia’s largest online educational institute. Since its inception, they have trained more than 15000 professionals from more than 45 countries through its effective programs.
IIM Skills courses are regularly taken by experts, prospective employees, and entrepreneurs who are interested in studying next-generation career-oriented programs.
Key Takeaways from Financial Modeling Course
- This course equips applicants with the skills necessary to create dynamic, well-structured financial models that may be used for financial analysis and decision-making, and the aptitude and skills they need to succeed in international standard financial markets.
- This course teaches all skills required to provide the confidence necessary for them to finish building a financial model from scratch, along with the ability to conduct business valuations successfully and provide valuation reports.
- After this course, candidates will acquire a thorough understanding of Financial Modeling and financial statements, since the ability to construct effective, streamlined, reliable financial models will be acquired. These models will be used to structure and analyze historical data, project future projections, and present assimilations of financial statements, key ratios, and outputs.
The fees for this course is Rs. 39,900 excluding tax
Audience:
The course is suitable for fresh graduates, CA students or professionals, MBA/FRM/CFA students or professionals, professionals from the finance department, or engineers who want to become investment bankers, financial advisers, and consultants. No significant previous experience is needed to benefit from its content,
Other Related Courses by IIM Skills
2. EY -Financial Modeling Course Online: The Complete Guide
About
Ernst and Young Global Limited, trading as EY, is a multinational professional services company headquartered in London, England. One of the biggest professional services networks in the world is EY. Along with Deloitte, KPMG, and PricewaterhouseCoopers, it is one of the big four auditing firms.
It primarily provides audit (including financial audit), tax, advisory and advisory services to its clients. Like many of the largest accounting firms over the past years, EY has expanded into markets adjacent to accounting, including strategy consulting, operations, human resources, technology, and financial services.
Key Takeaways
- These Financial Modeling courses for beginners introduce the basics of corporate valuation, various valuation methods, and interpretation of valuation results.
- The lessons learned from these demonstrations and examples are complemented by an overall case study covering all the modules taught
- Candidates are trained to understand and apply these skills using examples specially designed to show different ways to calculate different financial parameters.
- Upon completion of the course, candidates will be able to develop a well-structured, robust and dynamic financial model for conducting independent business assessments.
- The course contains 36+ hours of e-learning videos, presentations, email inquiry support, and 6 months of unrestricted LMS Access
- For Certification, candidates must achieve a score of at least 50% to pass the exam, which consists of MCQs. On successful passing, candidates will be awarded a “Certificate of Completion” at the end of the program.
The cost for this course is Rs. 10,000 excluding Taxes.
Audience
This course is suitable for financial professionals engaged in investment banking and equity research or financial management. It is also recommended for corporate finance, private equity, M & A professionals, and those pursuing FRM, CA, MBA in Finance, or CFA.
Also Check: Online Financial Modeling Courses
3. The University of Pennsylvania (Coursera)
About
The University of Pennsylvania (commonly referred to as Pennsylvania) is a private university located in Philadelphia, University of Pennsylvania, USA. As a member of the Ivy League, Penn is considered to be the fourth oldest and the first university in the United States to offer both undergraduate and graduate degrees.
Key Takeaways
- This course includes the basics of quantitative modeling and teaches you how to use your data with spreadsheets and how to use them as a powerful and accessible data analysis tool.
- One of the many Financial Modeling courses for beginners, this will also introduce you to the world of corporate finance and give you a better understanding of the basics of finance, including the various real-life situations that span personal finance, corporate decision-making, and financial intermediation. It also includes a hands-on project.
- There are 5 projects, and one has to complete this specialization in 2 months, with an expected commitment of about 9 hours per week.
The Coursera subscription costs 79 $ a month, and the participant will receive the certification after completion of all modules, quizzes, and the project.
Audience:
To pursue this course, no significant previous experience is needed to benefit from its content. Thus this course may be pursued by everyone alike.
Recommended Read: Financial Modeling Courses in Mumbai
4. NSE India Certification In Online Financial Modeling
About
The National Stock Exchange (NSE) is India’s major stock exchange, according to the World Federation of Exchanges (WFE), and is the fourth largest stock exchange in the world in 2015. It is the largest stock exchange in India in terms of total daily sales and average sales of stocks since 1995.
The NSE has a fully integrated business model that includes exchange listings, trading services, clearing and payment services, indexes and markets, data feeds, technology solutions, and financial education services. NSE is a technology pioneer, ensuring system reliability and performance through a culture of innovation and investment in technology.
Key Takeaway
- “Certification in Online Financial Modeling” was created with the idea of training people who support the idea of long-term investment and value development experience.
- This course covers the basic theory and practice of assessment analysis, strategic analysis, prospective analysis, DCF modeling, transaction comparison, and transaction comparison. Modeling with Excel gives learners enough confidence to create their financial models from scratch.
- Among numerous Financial Modeling courses for beginners, this is designed to provide students with intensive instructions and training they need to succeed in the rapidly evolving global financial markets.
- The course is enriching with 59 videos, accumulating to more than 10 hours of content, and 30 additional learning materials.
- This course is open to students who are pursuing Finance in MBA, CA, CFA, or commerce students. This course is also open to working individuals who want to switch their role as a Stock Research Candidate Analyst, or looking to improve their career prospects in equity research.
The fee for this course is Rs. 9000.
Audience:
To pursue this course, no significant previous experience is needed to benefit from its content. Thus this course may be pursued by everyone alike.
5. Macquarie University (Coursera) Excel Skills for Business Specialization
About
A key part of Financial Modeling is utilizing Excel effectively, else unskilled hands at Excel will share the same efficiency as that skilled hands with pen and paper. Microsoft Excel is the most commonly used software in financial analysis and modeling. As a result, Excel skills are most in-demand among business and finance professionals.
This discipline, offered by Macquarie University, aims to provide advanced business Excel skills. It consists of a series of four courses that guide learners step by step from basic Excel skills to advanced Excel skills.
Key Takeaways
- Among other Financial Modeling courses for beginners, this course primarily focuses on Excel and doesn`t require any specific background or prior knowledge.
- Participants will learn how to create spreadsheets to predict and model their data as well as efficiently manage large datasets, extract meaningful information from datasets, present data, and extract information effectively.
- They also teach how to develop automation, use sophisticated calculations, and apply conditional logic to make business decisions more successfully.
- This is a very practical specialty that teaches students how to use a variety of Excel abilities and approaches to solve a wide range of business challenges.
The Coursera subscription costs 79 $ a month, and the participant will receive the certification after completion of all modules, quizzes, and the project
Audience:
To pursue this course, no significant previous experience is needed to benefit from its content. Thus this course may be pursued by everyone alike.
Recommended Read: Financial Modeling Courses in Delhi
Future of Financial Modeling
With rapid advancements in technology, the status quo of financial roles is beginning to change too. In this segment, we will have a closer look at some of the ways how technology is likely to impact the Financial Modeling process. Currently, it is necessary to manually collect a large amount of data from the points of sale.
This makes the process expensive, cumbersome, and error-prone. Manual data collection is necessary because sensors and processors are not as ubiquitous. However, over time, the Internet of Things will allow sensors and processors to be built into almost any device.
In current markets, sensor-equipped machines are expensive. However, over time, this technology will become cheaper. This will have a huge impact on Financial Modeling. For example, companies are currently making vague estimates of your electric bill. Devices equipped with sensors will allow companies to know exactly how much electricity each device is using.
This enables companies to forecast their electricity costs more precisely and control them if necessary. It is very likely that shortly, devices will be pre-programmed to input data directly into financial models. This will help bypass the costly and time-consuming process of gathering and collecting data. Upcoming Financial Modeling courses for beginners should aim at updating their curriculum when necessary to make participants industry-ready.
Frequently Asked Questions About Financial Modeling Courses for Beginners
Q1. Is a career change to Financial roles advisable?
The current demand in markets bets on skills, not degrees. Therefore, your employability is governed by your skills, with experience as an added advantage. One should not be afraid to change their profession for sheer thought.
Q2. After completing my Financial Modeling course, what should I do?
Generally, institutes have dedicated job placement cells, to provide students with exposure to industries hiring for these roles. In case there isn’t one, you may start applying for positions, internships, or freelancing across LinkedIn or other job portals. It all comes down to your preferences.
Q3. For a working individual, how beneficial are Financial Modeling courses?
Every day, technology makes incredible strides. Telephones, which were once considered to be one of the greatest achievements of mankind, have now been rendered obsolete. To keep track of this fast-paced world, one needs to upskill from time to time so that he remains valuable to the institution. Thus Financial Modeling courses for beginners as well as professionals project an individual’s worth to an organization.
