Ahmedabad is a crucial business town in India. The city boasts business houses and textile mills. It is predominantly a city of businessmen and shop owners. Ahmedabad has the second largest stock market in India, after Mumbai. Thus, the education industry is more driven toward the study of trade and commerce, thus making Financial Modeling Courses in Ahmedabad, a very popular stream of study.
Financial Modeling is a process of estimating the financial performance of a company. It is a model based on various assumptions of growth and risk-taking into account to interpret the financial performance of a company or business. In this article, we mainly look at financial modeling courses in Ahmedabad, their course content, and the practical knowledge that they offer.
From the basic definition of the word Financial Modeling, the different types of financial models, to their application. Listed below are the following:
Financial Modeling is one of the essential skills of financial analysis. The term Financial Modeling is used to forecast critical financial decisions which will help the company in economic decision-making. A Financial Model is structured on the basis of certain knowledge like the company’s operations, finance, and accounts.
These skills are combined in Excel to form the model. The Financial Model is used to determine and analyze how a company will react and determine how a certain economic decision will impact the company. It is often used to predict a company’s performance in a given financial situation.
Where are Financial Models Used?
Financial Models are used on various accounts by companies and financial organizations to make decisions related to investments, buying or selling of companies, growth or expansion of a business, or during company mergers and acquisitions. It is also useful in budgeting, launching IPOs of companies, and pricing securities.
Various financial models are prepared based on variables like cash-flow projections, depreciation values, inflation rate, inventory levels, etc. By testing these variables against each other in various combinations, companies can decide the outcome of a specific business decision, or they can make investment-related decisions.
The institutes teaching financial modeling courses in Ahmedabad, while explaining the fundamentals also explain the types of financial models and how a business can benefit from their application.
What are the Types of Financial Models:
While many different types of financial models are available, here are some common examples that are used by companies and financial institutions that teach financial modeling courses in Ahmedabad.
Discounted Cash Flow Model (DCF): This valuation method estimates how much money it will generate in the future. This method is used to estimate the value of an investment based on how much will be cash flow in the future. This type of financial model is used in equity research and other capital markets.
Three Statement Model: It is the most basic financial model, where a set of assumptions are driven by linking the three statements namely: balance sheet, income statement, and cash flow with excel formulas. The assumptions made in the statements drive changes in the entire model.
Initial Public Offering Model (IPO): In this model, companies use a comparable analysis by assuming how much the investors will pay for the company. It is used by investor bankers and corporates to value their business before going public. Also, this model helps them to analyze how their business will perform in stock markets.
Budget Model: Professionals in the financial planning and analysis sector use this model to get the budget for the upcoming year. The budget model focuses mainly on the income statement based on monthly or quarterly figures.
Forecasting Model: This model is used to forecast performance by comparing the budget models. Sometimes the budget model and forecast models are combined in a workbook for assumptions.
How Do Businesses Benefit from Financial Models
There are many reasons that companies use financial modeling. By learning essential tools and techniques of Financial Modeling, organizations can improve the overall financial position of their business. As more and more businesses are set up, learning about it, in-depth is a great way to enhance knowledge and gain expertise, this is how many institutes are now organizing special courses, for instance, there are many financial modeling courses in Ahmedabad that explain the benefits of financial models.
Following Are Some of the Benefits of Using Financial Modeling:
In-depth understanding of a company /organization: By thoroughly studying the external and internal changes and factors that determine the performance of their companies, setting up a financial model helps them to better prepare the company for uncertain situations, and thus the company can perform more effectively than their competitors.
Minimize Risk: Financial Modelling studies the impact of a particular activity and thus helps in minimizing risk in business.
Accurate forecast of Financial Budgets: They use the business data in building forecasts and financial budgets, thus providing a structure to the company’s financial budget.
Influences Growth in Business: Financial Models help businesses to grow by studying the areas that are capable of generating higher profits.
Generates Quicker outputs: Financial Models are data-based; thus, they can quickly give results on a certain financial situation which otherwise would take a longer time to figure out an answer to thus speeding the output process.
Helps in the Valuation of a Business: Many companies use financial models to know their net worth, The models help the company to calculate the free cash flow that is incurred from time to time, which helps to determine the free value of a business. This information is crucial while selling or buying companies.
The Advantages of Pursuing Financial Modeling Courses in Ahmedabad
The institutes and academies conducting the financial modeling courses in Ahmedabad mainly focus on the basics and also explain the benefits, for instance. A financial modeling course will benefit business-minded young students who can learn the traditional models and also learn and understand the principles to be able to formulate new financial models for different companies.
While it takes many years of experience to design a financial model, by enrolling in Financial Modeling Courses in Ahmedabad, students can develop the acumen required for business planning and also develop decision-making skills.
The Financial Modeling courses in Ahmedabad introduce students to various business models like a cash-flow model and the method to identify the revenue and cost -models. Some cover the correct method of using product and labor cost models.
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What are the Tools Used for Financial Modeling:
It takes years of experience to develop financial models. However, by learning the tools, students can learn how to formulate. Simple tools like Excel are used to form spreadsheets. Thorough knowledge of excel is required to be able to use all its functions. Also, a good problem-solving mindset is essential to be good at financial modeling.
Knowledge of economy, accounting, and market trends can be very useful to be successful at financial modeling. Special Software is available to formulate the financial model by the institutes offering financial modeling courses in Ahmedabad namely:
- Oracle BI
- Business Objects
- IBM Cognos
Mentioned Below Are the 6 Best Institutes Offering Financial Modeling Courses in Ahmedabad.
The courses mentioned, are both online and physical courses. Considering the flexibility of timings, duration of the course, and internship experience they offer.
1. Financial Modeling by IIM SKILLS:
This is an Online Financial Modeling Course certified by the MSME Government of India. The course duration is 3 months. It offers 2 months of Internship and mock interview preparation.
Course Content: This is a 100% online course offered by one of the leading online education platforms. The course is designed by financial experts from the industry and aims to provide practical knowledge which will help the learners to get jobs. The course is divided into six modules and covers topics like:
Basic and Advanced Excel, Advanced Excel: The course gives special emphasis on the practice of basic to advanced level excel, as this is the main program, and all the functions and operations are carried out in Excel.
- Accounting Concepts and financial statements,
- Basics of Financial Modeling,
- Business valuation,
- Types of financial models.
- Ratio/KPI analysis
The course also focuses on the development of skill sets like critical and analytical skills, problem-solving skills, and integration of financial statements and a structured approach to valuation. This course is recommended for freshers and graduates of commerce and equally recommended for professionals like MBAs and CAs who would like to enhance their financial modeling skills. Course fee is INR 39,900 and batches are available on weekends.
Internship: IIM SKILLS offers placement assistance and job support.
2. Financial Modeling and Valuation Analyst by Cfi:
The FMVA course is a certification course offered by CFI. The course aims to teach the skills required to perform practical financial analysis. Students can also learn the ways to structure their models which can instill confidence in the stakeholders who are involved in the decision-making process.
The course consists of 38 modules with 190 interactive exercises with guided simulations. Experienced instructors teach the course. FMVA’s skill categories and learning objectives of this course are as follows:
- Financial Modeling
- Budgeting and Forecasting
- Presentation and Visuals
- The strategy
The course aims mainly at training the students to gain expertise in Financial Modeling Skills, Process budgeting, and forecasting processes, and Improving competency levels in the entire accounting and finance sector.
The course consists of 5 steps: Prep courses, Core courses, and Elective courses- A minimum of 3 electives out of 19. Step 4 is the final exam with a minimum passing grade of 70% to earn program certification, which is the 5th step.
Fees: Self-study fees are 497$ / year. Full Immersion 847$ / year.
Job Opportunities: Career options include Equity Research, Corporate Development, Financial Planning & Analysis, Investment, and Banking, and Private Equity.
3. Business and Financial Modeling Course by Wharton University:
Out of the many online financial modeling courses in Ahmedabad, this is one of the most popular. This is an online course offered by Wharton University. It is a beginner-level course explaining the fundamentals of business and financial modeling. This course aims to teach valuation and financial modeling skills, which will help learners make important business decisions.
The highlight of this course is that learners will work with datasets from Wharton Research Data Services which is recognized as a leading data research platform and business intelligence tool amongst a large number of corporates, and economic and non-profit organizations in 33 countries, and receive feedback from their experts. Students will be given a certificate from Wharton university on successful completion of this online course.
Mainly course covers an introduction to spreadsheet models, company valuation, forecasting, and investment analysis. Also, this course claims to teach core qualitative skills required for data analysis. This online course is led by Senior Wharton professors whose work has appeared in leading journals like Management Science, and Operations Research among others, and some have published books like Finance Literacy for Managers.
Program details: Course duration: 3-4 weeks
Course commitment: 5 -6 hours per week
The course is 100% online and can be started immediately.
Course fees: 79$ /
4. Udemy, Financial Modeling for Start-ups and Small Businesses:
This course is designed specifically for start-ups and small businesses. It is an optimum choice considering low course fees and it covers specific content intended for SMEs and Startups. The course content addresses topics like the need of creating a financial model for start-ups and the rationale and logic of modeling which once understood can be transformed into spreadsheets.
So, while the knowledge of Excel is a benefit, it is not a prerequisite for pursuing this course. The lemonade stand business model is discussed as an example and used to derive complex and sophisticated business analysis. 7 case studies are further discussed based on this model to explain the fundamentals and applications for small businesses and start-ups.
As the name suggests, this course is for anyone wanting to start a business. Who has an existing business and wants to leverage financial modeling to make better business decisions or startups who want to create a financial model which will help them better understand budgeting.
Course Details: Udemy offers this course at a discounted price of 15.99$
There are video recordings of 11.5 hours and 13 articles. Resources are available and can be downloaded. Can be accessed on mobile or tab through udemy’s app. A certificate of completion is available to successful candidates.
5. Wall Street Prep: Real Estate Financial Modeling:
Wall street prep is an institute developed in 2004 by investment bankers and has clients that include investment banks, business schools, and private equity firms. This course is specifically designed for those in the real estate sector and in real estate investments. The course is designed for those who want to learn financial modeling to buy property, acquire land or develop buildings.
Course Content: This is an advanced program and basic knowledge of accounting principles and excel proficiency is a pre-requisite. The course content is designed to teach the students effective ways of comparing and contrasting decisions related to investments. The course teaches real estate and development theory and how to build a real estate development model. It is a certified course and only students who pass the test are given the certificate. Students have a time period of 24 months to pass the test.
Duration: It is a self-paced course. Course videos of 20 hrs. are available and divided into 9 modules/parts and reusable excel modeling templates. Course fees: 499$
On successful completion, students get a Real Estate Financial Modeling Certificate which is valid for pursuing a career in real estate and related streams.
6. The Investment Banker from Financial Edge:
This course is a specialized course to train professionals for modeling investments, belonging to the investment banking sector. Financial Edge is a company started by Mr. Matchett in 2016, from J.P Morgan, an expert in equity, mergers, and acquisitions, from J.P Morgan. Top investment banks train their incoming financial employees in this company. The full course is called Invest Banker, there are sub-courses divided into modules that cover:
- Basic accounting principles
- Financial modeling
- Mergers and acquisitions
- Leveraged buyouts.
The duration of the course is 43 hours and has 25 modules documented in videos. There are many course exercises in Excel during the course, to help in skill building. Although the course is online, students can ask questions and get replies from the course instructors.
Students can work offline with the help of the Financial edge app and also interact with fellow students. The course offers a micro-degree, however, students should pass 4 tests to qualify for it. The micro-degree certificate is recognized by many top investment banks.
Course Fees: 499$
Duration: 43 hours
While an attempt to address most of the basic questions related to Financial Modeling has been made through this article, here are some FAQs relating to Financial Modeling courses in Ahmedabad which can be helpful:
Q1. How does it benefit to learn Financial Modeling Online?
An online course in financial modeling gives you the flexibility to learn from anywhere and as most online courses are taught through videos, you can study at your own pace. You can also choose the courses depending on your budget and get a certificate to enhance your career. It is also a great option for working professionals who can study at their own pace. Also, financial modeling courses are usually 4 -6 months in duration, it can be an additional qualification and help in career advancement.
Q2. How to choose a Financial Modeling course online?
While there are many courses, it is always recommended to read the course contents and the pre-requisite for the course. A general course in financial modeling can help you to understand the concepts and fundamentals. An advanced course may be useful if you are looking to apply your skills in a specific field. So depending on your level of expertise and application in your field, you may choose the course.
Q3. What are the career options to pursue by learning Financial Modeling?
Financial Modeling is a wide area of study. Accountants, Financial analysts, Investment bankers, and financial modelers in companies, as financial analysts you can work with banks, investment funds, insurance companies, and businesses to evaluate data, study economic trends, and evaluate investment opportunities.
Q4. Is there a demand for financial modeling?
As more and more businesses are generating, qualified professionals, who can help the companies to predict their earnings and growth are required. There is a huge demand for financial modeling analysts and this demand is growing day by day. It has become one of the most preferred skills of today.
Financial Modeling is a broad topic and there are many institutes that offer financial modeling courses in Ahmedabad therefore it is important to choose whether you want to study general financial modeling or specific modeling related to the field of expertise and degree of advancement.
For example, while an IIM SKILLS course will teach you basic and general financial modeling, a course by wall street is specifically for real estate professionals. As the performance of a start-up or a multi-national company depends upon financial strategies amongst other factors, taking up a financial modeling course would be useful for every industry and hence many institutes are offering online courses.
Methodology: Selection of the 6 Financial Modeling courses in Ahmedabad, was based on the following aspects
- Flexibility in schedule.
- Duration of the course offered.
- Fees and pricing.
- Job opportunities
- specialized and general courses.
Piece of detailed information has been provided regarding the course content that can help in deciding the course.