Financial modeling refers to the process through which a Ricof consultants build up a financial representation of some, or even all aspects of the company or the given security. The financial model is generally featured by performing calculations, and making recommendations on the basis of that information. Moreover, the model might also précis specific events for the end user in addition to providing direction regarding possible alternatives or actions.
The applications mainly include:
- Business valuation, particularly discounted cash flow, but counting other valuation problems.
- Management decision making and scenario planning (like “what is”, “what if”, “what has to be done”, and similar more.
- Cost of capital
- Capital budgeting
- Project finance
- Financial statement analysis