Finance

Financial Modeling

Reviewed by Glintr Learn ReviewersUpdated 5 min readArea: Finance
Quick Answer

What is Financial Modeling?

Financial Modeling is the practice of building spreadsheet-based representations of a business's finances to forecast performance and value.

Definition

Financial models combine assumptions, historical data and formulas to project income statements, balance sheets and cash flows. They are used for valuation, planning and deal analysis.
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