Finance has always been a subject of deep learning for an inquisitive mind, and the tide in the financial strategy of any business is usually observed and experienced by all. Therefore, tactics to scale up any business in the market are not fixed as parliament law. To run any entity and govern any big organization needs an upgraded solution for measuring the growth in the future. Likewise, business strategies are always laid down in advance to mark the future of any entity. Here, we all will go through this article to map out the model of business in the aspect of finance.
What Will You Get Following This Article?
(a) What is Finance Modeling?
(b) Why is it most used in business?
(c) Types of finance Modeling
(d) How can one learn this skill?
(e) Job Opportunities after joining financial modeling courses in Malaysia
(f) Financial modeling courses in Malaysia
What is Financial Modeling?
Finance management in any big organization is driven by its growth-oriented decision. Each decision in finance shapes the future of a business. Hence, the financial decision sets an organization’s right course of growth. To make a such concrete decision for a company, it is indispensable that the decision must be proven worthy on the ground, before execution.
For making this calculation easy to understand for everyone, finance modeling comes in business as a powerful tool to forecast a company’s growth, including assuming all forthcoming risk factors. So, Finance modeling is a comprehensive overview of a company’s financial status for the future on a spreadsheet like excel wherein a person skilled in finance modeling measures the business’s growth, based on past performance history and its current status.
Finance modeling analysis past performance, balance sheet, cash flow statement, profit, and loss statement then quantifies the optimistic progress of any organization for upcoming years and decades. It also emphasizes all risk and probability involved in one particular model for better articulation of business. Moreover, all calculations and predictions take place in excel sheets which is a common application for all users.
Why is It Most Used in Business?
Finance modeling is emerging as a powerful tool to run big industries and all businesses because it depicts a vivid picture of the business in advance of years and decades which is conducive to business development. In addition to that, the importance of Finance modeling in business is enumerated below:-
(a) For Making Strategic Investment – Finance modeling draws our attention toward the need for investment, which has to be made in business in upcoming years. Thus, Finance modeling helps every business in making their tactical strategy for investment.
(b) In Merger and Acquisition – Finance modeling predicts the growth rate of a business after being combined with another business. It also helps us take a bird’s eye view of our business and how the acquisition will impact our company.
(c) For Pricing Security– Both public and private companies raise funds for filling the demand for production. To cope with the crisis of funds and avoid depletion of the fund in business, all business decides on financial modeling.
(d) Business Growth and Investment Avenues – Financial modeling opens many avenues in front of us for achieving good growth in business. Moreover, this also gives us a frame of reference for making worthy investments for the future.
(e)For Business Valuation– Every buyer and seller ensures the valuation of a company before jumping into the business. Therefore, to obtain the valuation of a business, finance modeling helps us to get the valuation of any startup and business.
Types of Finance Modeling
(a) Three Statement Model – In this model, the company’s three statements: Profit and loss statements, cash flow statements, and balance sheet statements are estimated in excel sheet for the upcoming years or decades based on the company’s past profit and loss, cash flow, and balance sheet statement.
(b) Merger Model – If two companies are merged, their future financial statement, growth, and risk involved in the business are determined under the merger model. It is an essential model for analyzing one company’s forecast and its impact on the partner company.
(c) Discounted Cash Flow Model – It is a model which values the present status of any company based on the cash flow that can be generated by the company in the future. By this model, a company can figure out the amount which can be received by investment.
(d) Sum of Parts Model – If a giant company like reliance receives income from multiple sources and gets profit then we can not evaluate the entire business in one model. Therefore, the precise valuation of a big group of companies is undertaken in this model.
(e) Leveraged Buyout Model (LBO) – When a big company acquires another company on loan then the amount of the loan is paid by the profit gained from the acquired company, this sort of finance model comes under leveraged buyout model.
(f) Comparable Company Analysis – To compare peer companies’ valuation by similar statistics and estimation of the future of all companies are tabulated in one metric, which is projected in the comparable company analysis model.
(g) Initial Public Offering Model – Initial public offering is a phase in which a private asset is announced for public partnership. It means any company becomes public by selling its shares in the market. Then, an Initial public offering is depicted as a model for forecasting the company’s future.
These are the important forms of financial modeling that make finance management easy to handle and growth-oriented. In financial modeling courses in Malaysia, every student learns the above-mentioned type of finance modeling.
How Can One Learn Finance Modeling?
One can become proficient in building a finance model by consistent practice and reading research reports on equity. Everyone, who holds good knowledge in finance, can be adept in finance modeling but it takes lots more time and practice. However, one can learn finance modeling and take adequate experience through regular practice after enrolling in any institute for financial modeling courses in Malaysia. So, joining a skill center or teaching organization can be optimal for those keen on financial modeling.
Find here the other excellent courses in Malaysia for career development
Job Opportunities After Joining Financial Modeling Courses in Malaysia:-
Finance modeling is the oxygen for the finance world. Finance modeling creates new avenues for every student. A skilled person in finance modeling can never be vacant. He becomes competent to get a job in versatile areas. He may find good job opportunities in the following areas:-
(a) Investment Banking:- Investment banking unfolds many direct opportunities for a finance modeler at various places. An investment banking analyst holds special expertise in the realm of communication and networking. Investment banking covers a range of services and transactions.
So, an analyst provides a range of services such as mergers, acquisitions, leveraged buyouts, and underwriting in equity, debt, and hybrid markets. In investment banking, an analyst adopts the skill of market research at the grass root level, which helps his clients immensely in making sustainable decisions to achieve long- and short-term goals. Thus, investment banking is a broad scope for the job in finance modeling.
(b) Equity Research:- Pathfinders carry out deep research before digging deeper steps in the path. Similarly, any financial service needs a key observer and researcher of the market. In finance modeling, an equity research analyst plays the same role. He cumulates everyday data on the stock market and publishes research reports which assist his client in taking big investment decisions like selling and purchasing ownership. Scope in finance modeling as an equity research analyst is growing day by day for smooth functioning of everyday business.
(c) Job Opportunities as Financial Analyst, Managers, and Directors:- In finance modeling, a financial analyst keeps his eyes on the business as a third person and alarms his client before getting entwined in jeopardy or a major loss, and also highlights every pit of making a profit.
His role is emerging exclusively in a business. Each business and organization craves to secure the uncertainty of the future. In finance modeling, every analyst produces detailed research about the market and plans strategies to maximize profit and minimize the risk of loss in business.
Recommended Read: Financial Modeling Courses in Australia
Financial Modeling Courses in Malaysia
The need for financial modeling is increasing exponentially and becoming popular word wide. To fulfill the demand of today’s business and offer bright opportunities for students, interested in finance, many institutes are providing finance modeling courses in Malaysia. The name of the institute best for financial modeling courses in Malaysia are following:-
1. IIM SKILLS
IIM Skills has been expanding its roots deeper in the sphere of skill development and has gained widespread popularity among all institutes across the globe since its foundation was laid down. It is one of the leading institutes, known for a range of skill development courses, and has been delivering financial modeling courses in Malaysia.
It covers all dimensions of finance modeling in various phases of live classes and seven modules. It emphasizes live practical training and also disseminates insights for interviews. The whole syllabus of this course is divided into seven modules and followed by practical classes which help students in core learning.
Modules Covered in the Financial Modeling Course Are Enumerated Below:-
(i) Basic and Advanced Excel
- Learn to exploit MS Excel and know about the Ribbon
- Learn to use Keyboard shortcuts and their application
- Common use features like Vlookup, Hlookup, Index, Match, Sumifs, Offset, Paste Special, Concatenate, and indirect among others, and their combination.
- Know rules & regulations for conditional formatting.
- Learn to format fonts and number
- Know the method of freezing cells, rows, and columns
- Use of formulas and data validation, Sorting, and filters in Excel
- Configuration of the table and dynamic arrays
- Presentation of data through Pivot tables and charts, and slicers
(ii) Accounting Concepts and Financial Statements
- Key accounting concepts
- Understanding income statements,
- balance sheet
- cash flow statement
- Learn concepts of key line items
- Learn concepts of comprehensive income
- Relevance of notes to accounts
- Understanding the interlinkages and relationships
- Learn to prepare common-size financial statements
(iii) Ratio/ KPI Analysis
- Covering all sorts of ratios – valuation, Solvency, liquidity, profitability, etc
- Dupont formula
- Treasure stock method
- Learn to summarize finance report
- Diluted EPS and basic EPS
(iv) Basic finance modeling
- Get comprehensive knowledge about the structure of finance modeling
- Learn to develop your scenarios
- Learn key formatting tips
- Learn to track errors by tips
- Projection of Income statement, cash flow statement, and balance sheet statement
(v) Different Types of Financial Model
- Equity Return Model
- Cash flow Model
- Merger and Acquisition Model
- Leverage buyout Model
(vi) Business Valuation
- Learn to prepare a valuation report
- Pre-money and post-money valuation concept
- Discount cash flow valuation
- Relative Valuation
- Know the concept of controlling premium
- Learn to create sensitive table
Length of the course: 3 months
Mode of Training: Online
Fee: 2,239.50 Malaysian Ringgit
Let’s Know More About This Institute:-
- Get an authorized certificate recognized by MSME
- Get lifetime access to all study materials in one enrollment
- Avail two months of the free internship opportunity
- Fully digital and practical training
- Get full assistance for placement and develop key interview skills in one course
- Gain substantial experience by working on four live projects
Also Read: IIM Skills Financial Modeling Course Review
2. Pro School
Pro school has set up a special hub of finance teaching wherein it also delivers a plus Financial modeling courses in Malaysia. It helps every student in honing their skills in Finance modeling as well as in excel. It covers all core points of learning for building up financial modeling skills in a student under active technology methodology.
This institute crafts the art of using this finance modeling tool in its student through practical training and prepare them for a multifacet job in the realm of finance. It teaches this entire course in five modules which are enumerated below.
(i) Find solutions for every problem in excel
- Learn to detect problems and their rectification
- Draw statistics description in excel
- Basic Excel
- Visualization of data in excel
- All formulas and formatting of excel
(ii) Financial Statement Analysis
- Detail introduction to Financial statement analysis
- Cash flow statement
- Balance Sheet statement
- Income statement
- Analysation of ratio
(iii) Corporate Finance
- Introduction of corporate finance
- Source and use of capital
- Capital Cost
- IRR and time value of money
(iv) Project Finance
- Assessment of a project
- Overlay of a project with tax conditions
- Develop a service project
- Manufacturing project
(v) Equity Modeling
- Know about valuation
- Discount cash flow valuation
- Prediction of revenue and cost
- Prediction of Balance sheet and Cash flow sheet
- Souring historical data
Benefits of Joining Pro School for Financial Modeling Courses in Malaysia:-
- Get a certificate of finance modeling course on completion of 3 months.
- Learn the entire course in 75+ hours of live classes
- Avail 15 active learning classes
- Get access to recorded videos and other study materials
- Get a chance to learn from renowned faculty of rich industry
Course Duration: 3 Months
Fee: INR 32000
Recommended Read: Financial Modeling Courses in Dubai
EduPristine’s financial modeling courses in Malaysia have bridged the gap between student and job by making them skilled in finance. EduPristine offers well-structured financial modeling courses in Malaysia that cover all aspects of financial modeling through practical and experiential training. It develops soft skills in candidates and makes them prepare for the finance industry. EduPristine delivers this course in collaboration with BSE Institute Ltd.
Course Curriculum – The entire course is divided into five modules.
(i) Excel Tips
(ii) Finance Modeling Structure
(iii) Merger and Acquisition I & II
(iv) Macros, Charting, and Project
(v) Accenture Case Study
Benefitsefit of Taking This Course:-
- Get through excel Training
- Learn this course from expert faculty
- Take 24 X 7 support in the learning management system
- Case study evolution program
- Get comprehensive study notes
- Learn to prepare an effective resume
- Develop interview skills in an interview workshop
Length of this Course: 14 days
Recommended Read: Financial Modeling Courses in Melbourne
4. Wharton Online
Wharton online offers business and foundation financial modeling courses in Malaysia. Wharton’s finance modeling specialization course makes this institute different from others because Wharton institute is going to feature a Capstone project in which their student will be allowed to put their creativity and ability.
Students will get a chance to work with datasets where their work will be assessed by Wharton experts and they will get real feedback. In this different learning process, students can accumulate extensive experience and knowledge of work.
(ii) Introduction of finance model and excel
(iii) Risk and Realities in modeling
(iv) Decision making
(v) Finance Modeling Capstone
Benefits of Undertaking This Foundation Financial Modeling Courses in Malaysia:-
- Gain work experience with the Capstone project
- Get true feedback on work from leading experts in finance
- Learn to draw a decision tree
- The course is accredited by IACET.
Course Duration: 4 weeks
Mode: 100 % online
5. The Wallstreet School India
Experts in the finance domain and teachers of wall street school have designed a foundation financial modeling course. The Wallstreet school has tried to plug the gap between students and their dream by providing of finance modeling course in which a candidate is trained by experienced hands and gets elegant placement during the internship phase. This institute covers the course in ten modules over six weeks.
(a) Basic to intermediate Excel
(b) Advance Excel and PowerPoint
(c) Basic Finance concepts
(d) Business modeling
(e) Comparative analysis
(f) Transaction analysis
(g) Discounted cashflow Valuation
(h) Merger Module
(i) Leverage buyout
(j) Mock interview and edits
Benefits of Doing This Course:-
- Get a credible certificate of this course
- Relaxation in fee payment
- Take 100 % guide for placement
- Get training from experts hands and leading banking investors
- Flexible timing for study
- Special classes for interview skills
Course Duration: 6 weeks
Fee: INR 40,000
Mode of Class: Online
Recommended Read: Financial Modeling Courses in Singapore
Question 1: What is financial modeling skill?
Answer: It is a most popular skill in the finance domain which is used in decision-making for a business or company. Any person who is adept in this skill forecast the growth of a business based on past performance of the business.
Question 2: How can one develop this skill?
Answer: To hone the art of making finance models for a big company or business, one needs to be a good researcher, and observer and has to carry out regular practice for the same. Apart from this, one should enroll in any institute for financial modeling courses for comprehensive knowledge and practice.
Question 3: Which are the best institute for financial modeling courses in Malaysia?
Answer: Although, all teaching hubs are delivering their best content for finance modeling. Every student aspiring for this course must carry out good research before enrolling anywhere.
Question 4: What is a beginner’s expected salary in finance modeling?
Answer: A fresher can dream of a 4-5 lakh INR of the annual package in beginning. A finance analyst usually assists senior analysts and works with them. Over course of time, He grows up in the industry and acquire extensive experience. An experienced hand makes double the money annually than a fresher.
The financial modeling course brings the true aspirants closer to their dream and helps them in achieving career milestones through its wide spectrum of opportunities, available in the market. Presently, with the blessing of cutting-edge technology, these financial modeling courses are made available to every student in both online and offline mode. The skill in financial modeling is the need of modern business and has proven a tactful weapon for mapping out the future of any business. Thus, joining any financial modeling course can be a noteworthy decision in your life.