What is this?
Related: Evaluating Financials + Key Metrics
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
Understanding the Drivers of a Model
Forecasting
Understanding SaaS Metrics
Understanding Consumer Internet Metrics
Understanding Real Estate Metrics
Exercises
Simple Forecasting Exercise
Building an ARR Financial Model
Examples of Models
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