Summary Learning: The Financial Model

Summary Learning: The Financial Model

What is this?

The Importance of Modeling

Forecasting

A Model is a Tool, Not THE Tool

  • In which situations do we use a financial model?
  • In these situations, what question are we trying to answer?
    • Thoughts about valuation
    • Thoughts about cost structure and sustainability
    • Thoughts about company financial health
  • In any method for measuring financial health, there are always multiple ways to evaluate this that might give you different answers
    • Using various methods can help you triangulate what feels like the right answer

Things to Understand

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Understanding the Drivers of a Model
Forecasting
Forecasting
Understanding SaaS Metrics
Understanding SaaS Metrics
🎧
Understanding Consumer Internet Metrics
🏠
Understanding Real Estate Metrics

Exercises

Simple Forecasting Exercise
Simple Forecasting Exercise
Building an ARR Financial Model
Building an ARR Financial Model

Examples of Models

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Building a "Dream the Dream" Model
Forecasting a P&L
Returns Analysis
Unit Economics
Leveraged Buyout (LBO) Model
Micro LBO Model
Discounted Cash Flows (DCF) Model
Cap Table & Liquidation Analysis
Real Estate Model