Scribd
Upload
645 views3 pages

Financial Modeling

The document provides an overview of a course on financial modelling using Excel. The course aims to teach participants analytical and model building skills to create powerful models for finance. It covers Excel features and functions for data analysis and modelling, including formulas, charts, importing data, sensitivity analysis, and Monte Carlo simulation. The course also introduces tools like Solver, tables, and Visual Basic for Applications to automate operations and build flexible models.

Uploaded by

Dr. Prafulla Ranjan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
645 views3 pages

Financial Modeling

The document provides an overview of a course on financial modelling using Excel. The course aims to teach participants analytical and model building skills to create powerful models for finance. It covers Excel features and functions for data analysis and modelling, including formulas, charts, importing data, sensitivity analysis, and Monte Carlo simulation. The course also introduces tools like Solver, tables, and Visual Basic for Applications to automate operations and build flexible models.

Uploaded by

Dr. Prafulla Ranjan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 3

Financial Modelling using Excel

Financial Modelling using


Subject Sub Code FM Type Elective
Excel
Area FIN Programme PGDM Term-4
1. Objective

Techniques for accurate financial analysis and forecasting are used in many areas of finance, such as
corporate finance, valuation, project evaluation, deal structuring, portfolio management and the like. In
the course, the participants will learn the analytical and model building skills required to build powerful
models in finance with the help of excel. There are many features of model building that are common
irrespective of the final model that one intends to build. In the course we will also emphasize on the
different model building skills that one should have irrespective of the final use that one is going to make
of it.

2. Prerequisites

Basic Knowledge of Corporate Finance and MS Excel.

3. Lesson Outcomes

By the end of the course the participants should be better able to:

• Understand the basic and advanced features of excel.


• Understand how to build models in excel to suit one's purpose.
• Building models in different areas of finance including investments, and corporate finance.
• Identifying and controlling the key sensitivities with advanced spreadsheetsimulation.
• Understand how risk can be built into the model to enhance decision making process.
• Understand how risk can be built into the model to enhance decision making process.

4. Course Outline

4.1 The Excel Environment

Opening a Workbook, The Excel 2007 Ribbon, The Quick Access Toolbar, Worksheets, Moving
Around a Worksheet and Workbook, Printing a Worksheet, Saving a Workbook File.

4.2 Working with Data: Basic Techniques

Cells and Ranges, Selecting Ranges, Selecting All Cells in a Dataset Using Shortcut Keys,
Selecting All Cells on a Worksheet, Selecting Noncontiguous Ranges, Selecting Cells and Named
Ranges, Using "Go To Special", Filling Series, Copying and Moving Cell Entries, The Undo
Command, Useful Excel Shortcuts.

4.3 Increasing Spreadsheet Readability

Working with Rows and Columns, Making Good Use of Screen Space, Basic Cell Formatting,
Basic Number Formatting, Conditional Formatting, Paste Special, Setting Up a Worksheet for
Printing.
4.4 Excel Formulas

Copying Formulas, The Autocomplete Formula Option, Entering Formulas by Pointing, Alternate
Ways to Copy Formulas, "Absolute" Addressing, Using the "F4" Key, Hierarchy of Mathematical
Operations, Summation Icon, Editing or Correcting Formulas, Showing Actual Formulas in Cells,
"Do It Yourself" Exercise

4.5 Useful Excel Functions

IF Statements, Text Functions, Basic Date and Time Functions, Range Names, Lookup Functions,
Other Lookup & Reference Functions, lookup, Sumif, and Countif functions, Error Trapping,
Rounding Functions, The Sum Product Function, Modeling Uncertainty in Excel, Excel Financial
Functions, Count, Counta, and Count Blank Functions, Excel Statistical Functions, Conditional
Counts, Conditional Sums, Removing Duplicates, Sorting in Excel, Filtering Data, Subtotals,
Pivot Tables, Pivot Charts, Conditional Formatting: The Formula Option.

4.6 Charts

Creating Charts, Resizing and Moving Charts, Basic Formatting of Charts, Formatting Axes and
Data Series, Customizing Charts.

4.7 Importing Data into Excel, Importing from a Text or Word File, Using Web Queries to
Import Data from the Web, Exercises.

4.8 The Art of Spreadsheet Modeling

Model Building Blocks, Model Terminology, The Spreadsheet Model Building Process, Rules to
Guide Intelligent Modeling, Constructing a Model, Designing the Spreadsheet Model, Data
Tables, Two Way Data Tables, Goal Seek, Auditing Spreadsheets, Flexibility, Using Comments
and Text Boxes, Error Trapping, Using "F9" and Evaluate Formula Feature,Generating Scenarios,
Spinners, Model Limitations.

4.9 Using Excel Solver

Solving Optimization Problems, Developing a Solver Model, Configuring Solver to Find


Solutions.

4.10 Three Dimensional Formulas and the Table Feature Three-Dimensional Formulas, Using the
Excel Table Feature.

4.11 Monte Carlo Simulation Uncertainty and the Monte Carlo Simulation, Random Variables.

4.12 Using Visual Basic for Applications (VBA) to automate operations

• Recording and editing macros.


• Writing user-defined functions.
• Using macros to automate the use of the Solver add-ins.

5. Suggested Readings
5.1 Text Book

• Chandan Sengupta, "Financial Modelling using Excel and VBA" (2nd Edition), John Wiley &
Sons Inc.

5.2 References

• Spreadsheet Modeling And Applications:


• Essentials of Practical Management Science (with CDROM And Infotrac) (Hardcover) by S.
Christian Albright Wayne Winston Publisher: South Western Educational Publishing (Apr 2004).
• Christian Albright, "VBA for modelers", Second Edition, Palisade 2006
• Microsoft Excel Data Analysis and Wayne L. Winston Ph.D. (Author)
• Business Modeling (Using Excel 2007)Microsoft Press.

5.3 Magazines, Newspaper, Reports and Journals

• The Economic Times Business Standard Financial Times Business Today.


• Annual report of different public limited companies.
• Chartered Financial Analyst.
• Chartered Accountant.
• Management Accountant.

Website
• www.rbi.org.in
• www.amfiindia.org
• www.nseindia.com

You might also like