Financial Model Templates
Financial Model Templates and Excel Models
Browse the library of ready-to-use financial model templates to perform any type of analysis. Benefit from the experience of others and save valuable time.
What is a Financial Model?
A financial model is a tool used to forecast a company’s future financial performance based on historical trends, assumptions and scenarios about the future. A basic financial model would typically begin with a three-statement model, which contains an income statement, balance sheet, and cash flow statement. Financial analysts can build on top various types of advanced models to further evaluate a project or investment opportunity.
Uses of a Financial Model
The results derived from a financial model allow analysts to perform in-depth financial analysis and test different operating scenarios about the future. Financial models help management make better decisions about:
- Raising capital in the form of debt and/or equity
- Undergoing transactions such as mergers and acquisitions (M&A), leverage buyout (LBO), and divestiture
- Forecasting organic growth of the business
- Valuing an investment (assets, projects, or businesses)
- Budgeting and forecasting
- Pricing securities
Users of Financial Models
Financial models are built and used by many types of professionals, particularly in investment banking, commercial banking, equity research, sales and trading, portfolio management, corporate finance, financial planning and analysis (FP&A), accounting, etc. Use the financial modeling templates provided by finance professionals to perform more efficient and accurate financial analysis!
Top 10 Types of Financial Model Templates
Here is a list of the 10 most commonly used financial models in corporate finance:
- Three Statement Model: dynamically linked three statement models (income statement, balance sheet, cash flow statement)
- Discounted Cash Flow (DCF) Model: values a company using future cash flows and calculate the net present value (NPV) discounted at the company’s weighted average cost of capital (WACC)
- Merger Model (M&A): used to evaluate the pro forma accretion or dilution of an M&A transaction
- Initial Public Offering (IPO) Model: value a company before it goes public
- Leveraged Buyout (LBO) Model: value a leverage buyout transaction which involves use of different types of debt financing
- Sum of the Parts Model: combines several DCF models to calculate the net asset value for a business
- Consolidation Model: consolidates the performance of multiple business units into one single model
- Budget Model: commonly used in financial planning & analysis to plan for future years’ budget
- Forecasting Model: used in FP&A to predict future business performance
- Option Pricing Model: two main types of models are binomial tree and Black-Sholes