Difference between revisions of "Financial model"

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Financial models are widely used as tools for valuation and to support financial decisions.
 
Financial models are widely used as tools for valuation and to support financial decisions.
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In simple terms, a model:
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*Presents a financial calculation (or calculations)
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*In a way that enables the user to understand it and to challenge it, especially about the assumptions.
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Revision as of 04:08, 31 December 2016

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

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


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 the assumptions.


See also