In a competing corporate world, anyone having financial modeling skills is given more preference and it’s an added advantage to their career. If you are gifted with numerical abilities and have a keen mind for calculation and want to embark on your career in corporate finance, then the Financial Modeling Course will be your stepping stone to help you find an outstanding place in the financial industry. In this article, we will be discussing the Financial Modeling Courses in Melbourne in detail with an in-depth understanding of financial modeling and its implications in the real world.
Now many of you might be wondering what Financial Modeling is. Truth be told, many people don’t know about Financial modeling. Let us understand what Financial Modeling is. Financial modeling is a numerical representation of a company’s accounting, financial operations, statements, and business metrics created through Microsoft Excel.
Experts with critical financial modeling skill sets can make financial models which help companies make business decisions, investments, and corporate transactions such as mergers and acquisitions, divestitures, and capital raising. Financial Modeling can be used for managing the business, finance, treasury, pricing securities, and checking corporate development.
A Financial Model is a risk management tool to analyze various financial and economic scenarios providing valuations of assets of companies. The financial models encircle financial statements, depreciation schedule, working capital management, debt schedule, and amortization schedule.
It encompasses the company’s financial policies, terms & conditions, and restrictions imposed by lenders impacting the company’s financial position. There are many financial models determining a company’s financial graph. These are the most important financial models discussed below.
3-Statement Financial Model
The most common type of financial model is the 3-statement model. It comprises three financial statements-
- Income Statement
- Cash Flow Statement
- Balance Sheet
- Income Statement
- Balance Sheet
- Cash Flow Statement
- Gross and Operating Margin
- Net Profit Margin
- Revenue Growth Rate
- Supporting Schedules
- Charts and Graphs
- Analyze historical performance
- Understand cash flow drivers
- Establish forecast assumptions
- Build the forecast
- Set the foundation for more advanced modeling
Discounted Cash Flow (DCF) Model
Among the different types of Financial models, the DCF model is the most important and relevant. The theory of this financial model values a company by forecasting its free cash flows in either a levered or unlevered way. In Free Cash Flow to Firm (FCFF), enterprise value is calculated and in Free Cash Flow to Equity (FCFF), equity value is calculated.
- Everything in the 3-Statement Model
- Free Cash Flow (Firm or equity)
- Terminal Value
- Weighted Average Cost of capital to discount all cash flows back to the present value and added together to calculate the implied valuation.
- Net present Value using XNPV
- Internal rate of return using XIPR
- Value a business, project, or investment
- Determine how much to pay for an acquisition
- Assess the impact of a strategic initiative
- Internal FP&A (Financial Planning and Analysis)
- Raising money
Investment bankers, private equity professionals, and equity research analysts use this financial model’s methods to determine the absolute value of a company.
Valuation Model/ Comparable Company Analysis Model
The Valuation model follows the method where a company’s value is derived from comparisons to the predominating share prices of the existing similar companies.
- Comparable Company Analysis (Comps)
- Selection of proper peer group of comparable companies
- Value a business
- Summarize the various valuation methods
- Create outputs, charts, and graphs for a presentation often for investment banking and private equity types of transactions
Merger and Acquisition Model (M&A Model)
It is an advanced and intricate type of model which lies beyond the 3-Statement and DCF models.
- Operating scenarios
- Consolidated (pro-Forma) model
- Transaction assumptions (synergies, financing, takeover premium)
- Accretion/ Dilution analysis
- Sensitivity analysis
- IRR (Internal Rate of Return) and share price impact
- Value a target business
- Determine how much to pay for an acquisition
- Compare cash vs share consideration
- Evaluation synergies and takeover premiums
- Assess the net impact of the acquisition
Mostly used in investment banking and corporate development.
LBO Model (Leveraged Buyout)
The LBO model maintains the business of acquiring another company using a significant portion of the source of capital.
- 3 statement and operating model
- Operating scenarios
- Transaction assumptions (financing debt tranches, takeover premium, consistent FCFs, sufficient debt capacity)
- Debt and interest schedule
- Levered IRR analysis by investor type
- Assess how much leverage can be used
- Maximize the equity IRR
- Obtain financing and make an investment decision
Recommended Read: Online Financial Modeling Courses
Budget Model/ Forecast Model
This type of financial model is used for financial planning and analysis.
- Monthly assumptions
- Drivers of operations
- 3 financial statements
- Ability to “roll forward” the model
- Charts and Graphs
- Internal corporate planning
- Budgeting and forecasting
- Measuring results and performance
- Strategic planning
Where is Financial Modeling Needed?
Many professions and career paths require financial modeling.
Investment Banking: It is a special segment that is closely related to capital raising, financial consulting services, and financial transactions, Analysts and associates build financial models to manage the finance.
Equity Research: A study of a business that recommends what type of companies to invest in, makes an acquisition deal, and determines the price of investment in the bidding company.
Private Equity: It is an alternative investment that helps to decide which companies the private equity firm wants to acquire and how much they should invest.
Credit Analysis: A type of financial analysis that determines the credit worthiness of a business or organization. It is a way to measure the financial obligations of a company.
Financial Planning and Analysis: Analysts and managers build models to forecast and plan the financial situations of an operating company.
Corporate Development: It helps a corporation make strategic decisions to grow their business, perform better partnerships and attain operational excellence.
With the help of financial modeling courses in Melbourne, one can use their skills in such fields and choose a better career in corporate finance.
A Career in Financial Modeling Courses in Melbourne
Financial modeling courses in Melbourne can help an individual choose many career paths. Not only in Melbourne, anyone from anywhere in the world is eligible to choose these career options with financial modeling skills. In a real-world job scenario, one can start as a Financial Analyst, Money Market Analyst, Regulatory Reporting Analyst, Capital Market Operations Consultant, or Risk Management Consultant at the entry-level.
Other job opportunities one can try are Investment Banking Associate, Global Finance Researcher, Financial Market Advisor, Anti Money Laundering Specialist, Investment Banking Operations Lead, Executive Director in Clearing Services, and Corporate Banking Treasurer.
Recommended Read: Financial Modeling Courses in Kenya
Financial Modeling Skills
Financial Modeling is an artistic and scientific way to build a dynamic tool (an excel model) that can be used to evaluate investment operations, merger and acquisition (M&A), capital raising, or to assess a company’s historical and forecasted financial performance. One should possess a few skills to get better at financial modeling.
- Accounting & Financial Knowledge
- Excel Skills
- Logically Problem Solving
- Forecasting Skills
- Design Skills
- Attention to Details
- Presentation Skills
- High-level Strategy with execution ability
- Simplification of complex information
Who Can Take This Course?
Anyone who has extensive knowledge of Microsoft Excel would benefit the most from this course. Individuals from the commerce stream studying or having studied disciplines such as finance, accounting, economics, marketing, actuarial sciences, or other streams involving numbers such as Mathematics, Statistics, Computer Science, Engineering and other sciences can go for this course.
Financial Modeling Courses in Melbourne
Financial Modeling Courses in Melbourne are available in both Offline and Online modes. With the help of technology, people from Melbourne can avail courses from all over the world as well. This article discusses the offline courses available in Melbourne as well as the online courses that give a similar valuation.
1. IIM Skills
IIM Skills offers one of the best financial modeling courses in Melbourne named as “Online Financial Modeling Course”. The curriculum of this course is structured into 6 modules. The course duration is 3 months long which includes 50+ hours of live classes that students from Melbourne can easily follow and participle in the virtual classroom. The course offers 100+ hours of practical assignments, 4 live projects, and 5 case studies.
IIM Skills offers a guaranteed internship with this course. IIM Skills doesn’t only provide high-quality practical teaching and 24*7 online support, they guide you in mock interview preparation and provide 100% placement assistance. All the course material is in alignment with MS Excel with lifetime access.
- Course Fee: 717.42 Australian Dollar
- Course Duration: 3 months
- Guaranteed Internship
- 100% job Support
- Lifetime Access
- 24*7 Online Support
- Master Certification from IIM Skills
Also Read: IIM Skills Financial Modeling Course Review
2. EY Virtual Academy (building a better world)
With the motto of Building a better world, EY Virtual Academy offers a “Certificate in Financial Modeling and Valuation in Finance and Accounting” financial modeling course. This course includes 36+ hours of learning online videos. EY helps learners to grow through presentations and online assessments. EY provides query support through email. Learning Management System access is available for six months.
- Course Fee: $125.58
- Course Duration: 36+ hours
- Query support through email
- 6 months of LMS access
- Certificate upon completion
3. The University of Sydney
CCE ( Centre for Continuing Education) under The University of Sydney offers both online and offline financial modeling courses in Melbourne. “Financial Modeling Course Online: The Complete Guide” is a self-paced online course that is 120 days long. It provides 60 hours of online video classes discussing each concept mentioned in the curriculum.
Learners can engage themselves in the open discussion of the concepts in the classroom forums to participate better. CCE offers case studies that help learners to deal with the problems and practically solve them by implementing logic and transforming the concepts into excel formulas.
- Course Fee: $890.00
- Course Duration: 120 days
The University of Sydney conducts workshop-based Financial Modeling courses as well.
“Financial Modelling Course: Integrated Financial Statements”
- Course Duration: One day
- Mode: Offline
- Topic: 3-way models
“Financial Modeling Best Practice Course”
- Course Fee: $875.00
- Course fee: 8 hours, one day
- Mode: Offline
Recommended Read: Financial Modeling Courses in Hong Kong
4. JPA Financial Modeling
JPA is dedicated solely to Financial Modeling. In JPA, the financial modeling course is taught by experienced real-life modelers. All JPA training presenters are full-time modeling professionals, experienced for years in Australian transactions, including PPP models, Infrastructure auctions, and corporate Mergers and Acquisitions. The course teaches the learners about
- Model Development
JPA teaches Model development in a unique way that helps to create a model with minimal formulae complexity and the fastest calculation speed-boosting the modeling experience effortless and inherent.
- Model Audit
As guided by the experienced modelers familiar with high-risk areas for errors, they provide guidance based on real-life work scenarios and problem-solution methods to make the models seamless and error-free. The model auditing techniques are best when it comes to JPA.
JPA provides both in-house and public training courses. The in-house courses are customized to suit the needs of each client with a flat fee irrespective of the number of participants. Public courses have limited slots of 10 participants per session. They are conducted in Melbourne and Sydney regularly.
The course includes four modules that one can attend and learn about
- Introduction to Microsoft Excel
Duration: 1 or 2 days
- Introduction to Financial Modeling
Duration: 2 days
- Introduction to Project Financial Modeling
Duration: 2 days
- A presentation workshop is followed discussing Dashboarding and Charting
Duration: 1 day
5. Kaplan Schweser
Partnered with the Marquee Group, an industry leader in financial modeling training, Kaplan Schweser offers one of the best financial modeling courses in Melbourne. Infused with the learning science of Kaplan and the technical expertise of the marquee group, the financial modeling course proves to be an effective practical course.
It provides 15+ hours of comprehensive online classes. On-demand course format offers the flexibility of the course and helps you learn at your own pace. This course helps candidates prepare for the Advanced Financial Modeler exam offered by the Financial Modeling Institute.
- Course Fee: $199.00
- Course Duration: 15+ hours
- 180 days of access
Recommended Read: Financial Modeling Courses in Sydney
6. CFI Education
CFI Education offers a “Financial Modeling and Valuation using MS Excel” self-paced online course that provides 80+ hours of live online classes with detailed study material and recorded lectures. The course enables one to develop soft skills and build a better CV. CFI assists learners with interview preparation and provides 100% placement assistance. The course prepares learners for AFM (Accounting and Financial Management) degree.
- Course Duration: 80+ hours
- 30 hours of project-based learning
- Certification from FMI, Canada
WallSteetPrep offers a “Financial & Valuation Modeling Certification Program” which is 46 hours long. The curriculum is divided into many parts and lessons as mentioned below
- Financial Statement Modeling: 82 lessons, 10 hrs 29 min
- DCF Modeling: 66 lessons, 6 hours 16 mins
- M&A modeling: 38 lessons, 5 hrs 54 mins
- Trading Comps Modeling: 55 lessons, 6 hrs 47 mins
- Transaction Comps Modeling: 52 lessons, 5 hrs 12 mins
- LBO Modeling: 88 lessons, 9 hrs 46 mins
Other than these, the program comes with 39 mini-courses. WallStreetPrep provides “Buyers Lists” which help to understand different types of buyers and the dealing process of M&A. Trainees are eligible to take the WSP Financial and Valuation Modeling Certification Exam recognized by the National Association of State Boards of Accountancy (NASBA). Those Scoring above 70% will be certified upon passing the exam.
The premium Package of WallStreetPrep prepares a candidate extensively for the exam. Those who are willing to avail of the certificate can go for the premium package which covers real-world “On the Job” Investment banking Training, Intuitive and comprehensive study material, Support Center, Private Online Tutoring with an additional fee, and Resume inclusion which helps a candidate to upload the resume and cover letter to WSP.
- Course Fee: $499.00
- Course Duration: 46 hours
- Live Q&A sessions with the program instructor for doubt clearing or any assistance related to the course
- 1-month access to PitchBook
Recommended Read: Financial Modeling Courses in Dublin
Coursera offers “Business and Financial Modeling Specialization” a beginner-level online course under the University of Pennsylvania. This specialization program comes with 5 courses as mentioned
- Fundamentals of quantitative Modeling
- Introduction to Spreadsheets and Models
- Modeling Risk and Realities
- Decision Making and Scenarios
- Wharton Business and Financial Modeling Capstone
Coursera gives practical guidance with hands-on projects. A certificate is delivered upon completion of all the courses and projects.
- Course Fee: Free
- Course Duration: 6 months
1. What makes a good Financial Model?
- A good financial model should be simple enough that anyone can understand it, yet detailed enough to handle complex situations.
- It should be well structured, simple, and accurate with a good layout.
- It should be easy to follow and understand.
- Drivers and assumptions should be laid out.
2. How to determine the right financial modeling courses in Melbourne?
One must keep these things in mind before choosing financial modeling courses in Melbourne.
- Detailed practical curriculum based on work scenarios.
- Access to materials both offline and online.
- Internships to implement your learnings.
- Real-world assignments and exposure to dealing with clients.
- Job opportunities and placement support.
- Accredited certifications.
3. What is the Average Salary for a Financial Modeling Career after completion of Financial Modeling courses in Melbourne?
The average annual salary in Australia for a financial modeler is $129,411.
4. What are the steps for Financial Modeling?
- Historical data: It takes at least 3 years of input from the company to make an efficient model.
- Historical ratios and metrics: It includes some components such as margins, growth rates, asset turnover, and inventory changes.
- Assumptions: A method to build ratios and metrics for the future by making assumptions about margins, growth rates, and so on.
- Forecast: It is a common way of financial modeling to forecast the three financial statements into the future using the assumptions altogether. Usually, the forecast is 3-5 years long and takes time to make an effect.
- Valuation: The company uses various valuation methods to determine the value and make the financial model.
- Additional Analysis: It includes sensitivity, scenarios, charts, graphs, dashboards, and so on.
5. Are Financial Modeling courses in Melbourne worthwhile?
Financial Modeling courses are beneficial as they will enhance your career in the competing corporate world. With the financial modeling skill set obtained from the course, one will stand apart from those who are in a similar field. However, you will be more efficient and superior in terms of skill set and getting things done.
Financial modeling courses empower the interested learners who go through the course to have an edge over the competitors. There are many other financial modeling courses instructed by expert mentors one can opt for. An article is too short to cover all financial modeling courses. We tried to cover the important financial modeling courses in Melbourne. We hope this article is useful to your queries about financial modeling courses in Melbourne.