The Fundamentals of Spreadsheet Modelling
Learn how to create Spreadsheet Models for Cash flow, Net Present Value and Pricing in this free online course.Publisher: Ross Maynard
CertificationView course modules
The modern business environment is full of challenges, and investors are continuously searching for viable investment opportunities to maximise returns on their capital. So, how does one decide on what type of business to engage in when faced with several options? In this free online course, you will learn how to develop Excel spreadsheet models that help in this decision-making process. Firstly, you will be taken through the principles of Spreadsheet Model Building and the key elements that should appear in every spreadsheet model. After that, you will be introduced to the different types of financial models and the risks involved in developing and using these models. The key preliminary steps that should be undertaken before building a model will then be unveiled. Furthermore, you will carry out an exercise that will help you understand these steps better. This will pave the way for the topic of pricing a model, where you will study the relationship between price and demand of a product or service and how to set different price points to optimise returns without losing business to competitors. You will go through several examples and an exercise to help cement your learnings.
Next, you will uncover the methods used to create cash flow models, and you will appreciate the challenges faced in building such models. The main Excel functions used in this process will be presented to you, and a recommendation will be made on the type of formulas to use, depending on the version of Excel you have. With this knowledge, you will then study the factors to consider when creating an income statement and balance sheet. An exercise on developing a cash flow model combined with an income statement and a balance sheet will be reviewed. You will find it interesting to apply the knowledge you gained to answer the exercises’ questions that follow. Then you will be taken through the instructor’s workings and answers. The next topic is spreadsheet models for the project lifecycle. Here, you will learn how to build models that cover a longer span of time, typically beyond a period of one year.
Finally, you will study valuation models and how to select a discount rate to calculate the Net Present Value (NPV) of a project or business. The leading causes of problems in NPV models will be presented as well as the concept of forecasting. You will then learn how to compare projects and different investment options with the help of another set of examples. This course is specially designed for practising finance staff, managers, investment analysts and business people. The skills obtained here will help you make quicker and better investment decisions in your businesses. For students of business finance and management, the knowledge gained in this course will lay a firm foundation for your careers as you continue to grow through learning and practice. So, why wait? Start this course today!Start Course Now
Financial Models and Investment Analysis
Financial Models and Investment Analysis - Learning Outcomes
Introduction to Spreadsheet Models
Income Statements and Balance Sheets
Project and Investment Analysis
Financial Models and Investment Analysis - Lesson Summary
By the end of this course, you will be able to:
- List the key elements that should appear in every spreadsheet model.
- Outline the steps involved in getting ready to build a spreadsheet model.
- Summarise the factors that need to be considered when building the input datasheet for a pricing model.
- Select an appropriate discount rate for use in Net Present Value analysis.
- State the risks that increase with an increase in the life of a project.
- Estimate the value of the project or business using the discounted cash flow valuation model.
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