Financial modelling is a process which considers the economic worth of any endeavor.
Understanding the best outcome for the business is achieved by considering different options or alternatives.
Investment capital is almost always necessary to fund a new operation, expansion project, or other business venture.
This investment capital is sourced from banks, external investors, shareholders or other financial institutions that require a certain level of confidence when deciding whether or not to invest and fund the project.
Financial modelling provides this level of confidence to investors and financial institutions by means of a structured and benchmarked methodology to evaluate the economics of underlying cash flows and understand the viability of a project.
Quantitative analysis of capital and operating expenditure, revenue and investment income, tax and royalties and other costs over the project lifetime provides key project investment indicators such as net present value (NPV), internal rate of return (IRR), discounted cash flow (DCF) and earnings before interest, tax, depreciation, and amortisation (EBITDA).
Investment decisions can be made based on these indicators within financial modelling.
Download Financial Modelling Information Sheet PDF
Download French Translation of Financial Modelling Information Sheet PDF