FIN 420 - Financial Modeling in Excel

• Instructor: Maher Zannouni
• Email: maher@zaanouni.com
• Pre-requisite:
  • Corporate Finance (FIN300)
• Program of study: Optional Course for Major Finance

Course Description

This course provides students with the necessary skills to effectively utilize Microsoft Excel for financial analysis and decision-making. Through hands-on practice and practical examples, students will develop proficiency in using essential Excel functions, formulas, and tools to create accurate and efficient financial models. They will learn to construct and format financial statements, including income statements, balance sheets, and cash flow statements. Furthermore, students will master the art of constructing forecasting models to estimate future financial performance and evaluate investment opportunities. The course also focuses on sensitivity analysis and scenario analysis models, enabling students to assess the impact of different variables and assumptions on financial outcomes. Students will delve into the generation of valuation models, particularly discounted cash flow (DCF), to determine the value and profitability of investments. Additionally, the course emphasizes effective communication and presentation skills, teaching students to interpret and analyze financial model results for informed business decision-making. They will learn to prepare clear and concise reports, graphs, and charts that effectively communicate financial information to stakeholders. Students will also develop the ability to present financial models and findings in a professional and persuasive manner, both orally and in written form.

Course Learning Outcomes

Upon successful completion of the course “Financial Modeling in Excel,” students will be able to:

1. Demonstrate proficiency in using Excel for financial modeling: a. Apply essential Excel functions, formulas, and tools to create accurate and efficient financial models. b. Construct and format financial statements, including income statements, balance sheets, and cash flow statements. c. Construct forecasting models to estimate future financial performance and assess investment opportunities.
2. Create sensitivity analysis and scenario analysis models to evaluate the impact of different variables and assumptions on financial outcomes.
3. Generate valuation models, such as discounted cash flow (DCF) to assess the value and profitability of investments.
4. Communicate and present financial models effectively: a. Interpret and analyze financial model results to make informed business decisions. b. Prepare clear and concise reports, graphs, and charts to effectively communicate financial information to stakeholders. c. Present financial models and findings in a professional and persuasive manner, both orally and in written form.

Course Materials

• Vernimmen, Pierre, et al. Corporate Finance: Theory and Practice. Allemagne, Wiley, 2022.

• Pignataro, Paul. Financial Modeling and Valuation: A Practical Guide to Investment Banking and Private Equity. Royaume-Uni, Wiley, 2013.

TBS Grading Scale