Summary Learning: The Financial Model

Summary Learning: The Financial Model

Investors To KnowInvestors To Know

The Investing LibraryThe Investing Library

Types of InvestingTypes of Investing

Investing CurriculumInvesting Curriculum

Getting a JobGetting a Job

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 ModelForecastingForecastingUnderstanding SaaS MetricsUnderstanding SaaS Metrics🎧Understanding Consumer Internet Metrics🏠Understanding Real Estate Metrics

Exercises

Simple Forecasting ExerciseSimple Forecasting ExerciseBuilding an ARR Financial Model Building an ARR Financial Model

Examples of Models

☁️Building a "Dream the Dream" ModelForecasting a P&LReturns AnalysisUnit EconomicsLeveraged Buyout (LBO) ModelMicro LBO ModelDiscounted Cash Flows (DCF) ModelCap Table & Liquidation AnalysisReal Estate Model