images

Financial Modeling: An Overview

This chapter serves as a background to financial modeling by providing a definition and describing the financial modeling environment.

Financial Modeling: A Definition

Modeling is a specific discipline that often but not exclusively uses spreadsheets. Financial modeling is, in fact, a part of financial analysis and emphasizes the interpretation and output of inputs and variables. A suitable definition should mention processes, variables, and quantitative relations, hence the following definition:

Financial modeling is a theoretical construction of a project, process, or transaction in a spreadsheet that deals ...

Get The Handbook of Financial Modeling: A Practical Approach to Creating and Implementing Valuation Projection Models now with the O’Reilly learning platform.

O’Reilly members experience live online training, plus books, videos, and digital content from nearly 200 publishers.