Financial model: Difference between revisions

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A simplified representation of a financial situation, using a selected set of assumptions and relationships.  
''Spreadsheets and models.''
 
A simplified representation of a financial situation, using selected assumptions.
 
Financial models are widely used in practice for valuation, and to support financial decisions and risk management.
 
Models are also an important tool in finance coaching and financial education.
 
 
In simple terms, a model:
*Presents a financial calculation (or calculations)
*In a way that enables the user to understand it and to challenge it, especially about its assumptions.


Financial models are widely used as tools for valuation and to support financial decisions.




== See also ==
== See also ==
* [[CertFMM]]
* [[Ceteris paribus]]
* [[Coaching]]
* [[Deterministic]]
* [[Deterministic]]
* [[FAST]]
* [[Financial]]
* [[Financial maths]]
* [[Financial modelling]]
* [[Financial modelling]]
* [[Input]]
* [[Model]]
* [[Model]]
* [[Risk management]]
* [[Rounding]]
* [[Rounding]]
* [[Sensitivity analysis]]
* [[Shadow model]]
* [[Simulation]]
* [[Simulation]]
* [[Spreadsheet]]
* [[Spreadsheet risk]]
* [[Stochastic]]
* [[Stochastic]]
* [[Tab]]
* [[Workbook]]
[[Category:The_business_context]]
[[Category:Corporate_finance]]
[[Category:Investment]]
[[Category:Long_term_funding]]
[[Category:Identify_and_assess_risks]]
[[Category:Manage_risks]]
[[Category:Risk_frameworks]]
[[Category:Risk_reporting]]
[[Category:Financial_products_and_markets]]
[[Category:Technology]]

Latest revision as of 22:36, 11 March 2023

Spreadsheets and models.

A simplified representation of a financial situation, using selected assumptions.

Financial models are widely used in practice for valuation, and to support financial decisions and risk management.

Models are also an important tool in finance coaching and financial education.


In simple terms, a model:

  • Presents a financial calculation (or calculations)
  • In a way that enables the user to understand it and to challenge it, especially about its assumptions.


See also