The ability to effectively create and interpret financial models
is one of the most valued skills in corporate finance--from Wall
Street to Main Street. Now, the acclaimed guide to designing,
building, and implementing valuation projection models is fully
revised and expanded to keep finance and accounting professionals
competitive in today''s marketplace.
This second edition of Building Financial Models
continues the tradition of its predecessor by providing a hands-on
approach to creating a core model that is supported by broad
coverage of cornerstone accounting and finance principles.
Additionally, this updated volume features:
- Entirely new coverage of discounted cash flow (DCF)
- Excel formulas for making powerful calculations within the
- In-depth explanations of both the principles and mechanics of
Building Financial Models helps readers practice good
thinking and apply sound knowledge of their tools--two key
attributes to producing robust and easy-to-use models. This
practical guide takes you step by step through the entire process
of developing a projection model, with a full chapter dedicated to
each phase. By the end, you will have a working, dynamic
spreadsheet financial model for making projections for industrial
and manufacturing companies.
Furthermore, this Second Edition provides the vocabulary and
syntax of model building so you can tailor core models to fit any
size company and allow for quick input changes to test sensitivity.
The companion website www.buildingfinancialmodel.com offering
example spreadsheets will give you a head start on developing your
A flexible and successful financial projection model does more
than just add numbers--it explains the complex relationships
between those numbers and illuminates ways to use those
associations to add value to an enterprise. Building Financial
Models is the only book you need to create and implement a
fluid financial projection model that is both state of the art and