Symbiosis College of Arts and Commerce
(An Autonomous College under Savitribai Phule Pune University)
Subject code Semester I II III IV V VI [Link]. I II III IV
S.Y.B. Com with Specialization in Accounting and Finance
Title of
Honours – Core I
Subject
Semester III
Title: FINANCIAL MODELLING
Objectives 1. To become well versed with Intermediate level Microsoft Excel Functions for the
purpose of financial modelling.
2. To analyze, understand and interpret performance of companies through their
financial statements
3. To identify revenue and cost drivers and start forecasting data
4. To build scenarios for financial modelling
5. To develop financial models from scratch without using readymade templates
Number
Unit Contents of the syllabus of
Lectures
1. Intermediate level Excel for financial Modelling
1.1 Formatting of Excel Sheets
1.2 Use of Excel Formula Function
1.3 Advanced Modeling Techniques- Extrapolation, Histogram
6
1.4 Data Filter and Sort
1.5 Charts and Graphs
1.6 Table formula and Scenario building
1.7 Lookups: Vlookup Match & offset, pivot tables
2. Analysis of Financial Statements
2.1 Introduction to Financial Statement Analysis
2.2 Financial Reporting Mechanics
2.3 Understanding Income Statement, Balance Sheet
2.4 Cash Flow Statement 10
2.5 Financial Analysis Techniques
2.6 Inventories, Long Lived Assets
2.7 Non-Current Liabilities
2.8 Financial Statement Application
3. Financial Ratios
3.1 Ratio analysis of industries
3.2 Du point Analysis 10
3.3 Peer to peer analysis
3.4 Preparation of Financial Analysis report on an industry
4. Business Finance 12
4.1 Time value of money
4.2 Long term financing
4.3 Cost of capital
4.4 Measure of Leverage Project Finance
4.5 Project evaluation; stage of project; construction & development phase;
funding during investment phase
4.6 Costs during investment phase
4.7 Life of project
4.8 Decision making
4.9 Cash flow waterfall & resolve circular reference problem in interest during
construction.
5. Equity Research Modeling
5.1 Prepare an Income Statement, Balance sheet, Cash Flow Statement,
Geographic Revenue Sheet, Segment Revenue Sheet, Cost Statement, Debt
Sheet, Analyze Revenue Drivers
5.2 Forecast Geographic & Segment Revenues, Cost Statement, Debt, Income
Statement, Balance Sheet, and Cash Flow Statement.
16
5.3 Performa Adjustments, Income Statement - Compute Margins, Balance
Sheet -Compute Ratios
5.4 Cash Flow Statement Projection, Valuation- Discounted Cash Flow Method
(DCF), Valuation – Relative Valuation (Football Field Chart)
5.5 Valuation – Assumptions for Valuation Model, Prepare Valuation Model,
Prepare Presentation Sheet, Prepare Company Overview, Sector Overview
Total Number of Lectures 54
Suggested Reference Books
1. Financial Modelling by Simon Benninga
2. Financial Modelling by Paul Pignataro
1. The student should be comfortable working in excel.
2. The student should be able to use the various financial and other tools in excel.
Outcomes: 3. Introduction to the various modelling technique.
4. Prepare report and interpret data using excel.
5. Prepare the financial statements using excel.