financial model
Quantitative business forecast
A financial model is a mathematical representation of a business, investment, or economic scenario, typically built in spreadsheet software.
It projects future performance based on assumptions about revenue, costs, growth rates, and other variables.
Financial models help with valuation, budgeting, and decision-making: The analyst built a financial model to assess the acquisition target.
Common types include discounted cash flow models, merger models, and leveraged buyout models.
- spreadsheetTabular data organizer
- forecastPrediction of future conditions
- projectionSomething that extends outward
- base caseRecursion's stopping condition
- valuationAssessment of monetary worth
assumptions · revenue · cashflow · burn rate · Excel · scenarios · inputs · outputs · sensitivity · stress test · equity · debt · returns · IRR · growth · hockey stick · formulas · cells
- modelssupermodel, spokesmodel, cover girl, mannequin, neural net
- Simulationscomputer simulation, virtual reality, flight simulator, VR, fluid dynamics
- portfolio piecesportfolio, resume, writing sample, demo reel, art portfolio
financial modelbusiness plan
Formal corporate strategy outline
mission statement · executive summary · conceptual framework · narrative strategy · vision statement
financial modelfinancial statements
Formal records of transactions
balance sheet · income statement · annual report · post-mortem
financial modelgut instinct
Immediate unreasoned knowing
intuition · educated guess · hunch · rule of thumb · ballpark figure
financial, model, finance, finances, financed, financing, financier, financiers, financially