Advanced Financial Modelling

Course Overview

The Advanced Financial Modelling course is designed for experienced finance professionals seeking to refine their financial modelling skills. The course will provide students with a practical understanding of advanced financial modelling techniques using Microsoft Excel and other financial software tools.

Course Objectives

By the end of the course, students will be able to:

• Build sophisticated financial models for complex business scenarios using advanced Excel functions and techniques, as well as other financial software tools
• Analyze financial statements and macroeconomic data to create detailed financial forecasts and projections
• Develop sensitivity analysis, scenario analysis, and stress testing to evaluate the impact of different variables on financial models
• Create valuation models using different approaches, such as discounted cash flow, real options, and Monte Carlo simulation
• Understand and apply different techniques for risk management and optimization in financial models, including portfolio optimisation and hedging strategies
• Communicate financial models and analysis effectively to different stakeholders, including senior executives, investors, and regulatory agencies

Course Outline

The course will cover the following topics:

1. Advanced Financial Statement Analysis and Forecasting

1. • Advanced financial statement analysis
   • Advanced forecasting techniques (e.g., regression analysis, exponential smoothing)
   • Building a multi-year financial model with income statements, balance sheets, and cash flow statements
2. Advanced Excel Techniques for Financial Modelling
   • Advanced Excel functions for financial modelling (e.g., array formulas, complex IF statements, INDEX-MATCH)
   • Building dynamic models using data tables, scenarios, and pivot tables
   • Advanced charting techniques for financial analysis
3. Sensitivity, Scenario, and Stress Testing Analysis
   • Sensitivity analysis and scenario analysis using Excel Solver
   • Monte Carlo simulation for financial modelling and analysis
   • Stress testing for financial risk management and regulatory compliance
4. Valuation Techniques and Real Options
   • Discounted cash flow (DCF) analysis, including terminal value calculation
   • Multiples analysis and valuation benchmarks
   • Real options analysis for strategic decision making and investment evaluation
5. Risk Management and Optimization
   • Portfolio optimization using Excel Solver and other optimization tools
   • Financial risk management techniques, including hedging strategies and option valuation
   • Capital budgeting and investment analysis for project evaluation and resource allocation
6. Model Presentation and Communication

• • Best practices for model presentation and communication to different stakeholders
  • Common pitfalls to avoid in financial modelling and analysis
  • Model audit and review for accuracy and transparency

Course Format

The course will consist of lectures, case studies, and hands-on exercises using Excel and other financial software tools (e.g., Bloomberg Terminal, MATLAB). Students will be required to complete individual assignments and a final project, which will involve building a comprehensive financial model for a business case.

Prerequisites

• Advanced understanding of financial statements, accounting principles, and financial markets

Proficiency in Microsoft Excel, including advanced formulas and functions