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Types of Financial Models for Greater Business Development

Spreadym

Financial models are mathematical representations or frameworks used to analyze the financial performance and make predictions about the future financial outcomes of a business, project, or investment. Financial models can take different forms depending on their purpose and complexity.

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The Future of Financial Leadership: Aligning Operational and Strategic CFOs

The Finance Weekly

An operational CFO optimizes performance by combining data from various departments with financial data. A strategic CFO focuses on creating long-term plans to achieve the company's goals. It involves analyzing financial statements and data from different business units.

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To NPV or Not to NPV: That Is the Question

Fpanda Club

Analysts usually build their financial models for the first 5 years of the investment and then add terminal value for all the years coming thereafter which may contribute up to 50% of NPV. Discovery driven planning Another weakness of the DCF model not discussed previously in this article is its sensitivity to assumptions.