What is Financial Modelling? Course Detail (2024)

Financial modelling is the process of either building a financial plan from scratch or remodelling or restructuring an existing financial model. Since finance is a dynamic field that brings in new prospects and opportunities every year, preparing a model that meets the company’s long-term and short-term goals can be a complicated process. That’s why a Financial Modelling professional identifies these new opportunities that may arise and forecast how they may bring more revenue to the company in return for the investment made.

Financial modelling is the first step to any business action or project execution. Without a proper plan/financial model, no business can start investing in a new venture or growth activities. A Financial Modelling Analyst has to create an end-to-end plan based on prior data, potential opportunities, forecasts, and predictions. Financial modelling, as a profession, is gaining massive popularity in India and abroad. If you are interested in taking it up then here’s everything you need to know about this course.

Financial Modelling and Valuation Analyst Course Details

To update you with the quick facts on the FMVA course, here are some quick details to give you an insight on what this course is all about.

Financial Modeling and Valuation Analyst Course Details

To update you with the quick facts on the FMVA course, here are some quick details to give you an insight on what this course is all about.

FMVA Full FormFinancial Modeling and Valuation Analyst Course
Complimenting degreeB.Com, BBA, M.Com, MBA, diploma
DurationThe financial modelling course can be pursued as different types of degrees/certifications based on the knowledge you require in this field.

Undergraduate: 3 years

Postgraduate: 2 years

Certificate: 2 days to 6 months

Diploma: 1 to 2 years

EligibilityUG: 10+2

PG: Bachelor’s degree

Certificate: 10+2

Diploma: 10+2

Career options after Financial ModellingInvestment Banking

Equity Research

Corporate Finance

Real Estate

Commercial Banking

Venture Capital

FMVA salary range4.5 LPA to 7.5 LPA
Top hiring companiesJP Morgan

Ernst & Young

CRISIL

Thompson Reuters

Refinitiv

Morgan Stanley

Accenture

Genpact

Course feesCertificate Course on Financial Modelling: INR 7000 to INR 40,000

B.Com (Hons.) in Financial Modelling: Approx INR 90,000 + GST

PG in Financial Modelling: Approx INR 3,00,000

Best complimenting degreeChartered Financial Analyst

What is Financial Modelling? Course Detail (1)

Financial Modelling Core Subjects

A bachelor’s degree in Financial Modelling could take around 3 to 4 years whereas a diploma course will take around 1 to 2 years, and if you happen to choose a short-term online course then expect a learning journey as short as 2 weeks. Here are some of the major concepts you’ll be learning if you complement your CFA degree with a Financial Modeling course.

  • Corporate Finance
  • Portfolio Management
  • Cost of Capital
  • Estimation of Risk and Return of Portfolio
  • Modelling the Determinants of Capital Structure
  • Testing of CAPM, APM, and MFM
  • Agency Conflict and Dividend Policy
  • Optimal Portfolio Section (Application of Markowitz, Sharpe, Lagrange Multiplier and Utility Models)
  • Construction of Corporate Governance Index
  • Construction of Index Fund and Stylized Funds in the Mutual Fund
  • Financial Market
  • Risk Management
  • Financial Market Integration (Application of Co-integration)
  • Fixed Income Securities: Duration, Convexity and Value at Risk
  • Efficient Market Hypothesis (Application of Time Series Models)
  • Assessment of Risk in Equity market through Value-at-Risk
  • Financial market Instability: Measurement and Construction of Instability
  • Financial market Forecasting: Interest rate, Exchange Rate and Stock Price
  • Risk management in Insurance Companies: Solvency-I and II
  • Risk Management through Derivatives (Future, Option and Swaps)

What is Financial Modelling? Course Detail (2)

Financial Modelling Course Eligibility

Since the Financial Modelling Course can be pursued as either as an undergraduate degree, postgraduate degree, diploma degree or a short-term certificate course, the eligibility criteria for each of them differ.

Here are the course-wise eligibility criteria to help you prepare better for Financial Modelling courses :

Undergraduate: 10+2 From a recognised university

Postgraduate: Bachelor’s Degree From a recognised university

Certificate: 10+2 From a recognised university

Diploma: 10+2 From a recognised university

Skills Required To Become a Financial Modelling Expert

As mentioned earlier, financial modelling is the first step to the right financial planning and organisational growth. This profession not only requires some cutting-edge research skills but also data management and planning skills. Here are some of the top skills required an ideal Financial Modelling Expert needs to possess in order to take their career to the next level.

  • Thorough research on the market trends, consumer behavior, and product needs
  • Knack to identify the current market opportunities and include them in the financial model
  • Ensuring the financial model is in line with the company’s long-term goals
  • Using your analytical skills to analyse the latest financial data
  • Creating a financial model based on the data
  • Ensuring great problem solving and communication skills

We hope that with this detailed article on Financial Modelling you have received an in-depth understanding of what the profession looks like and what to expect. If you are interested in getting into this exciting and equally dynamic field, then pursuing a CFA degree post this course is the direction to take. To know more about the CharteredFinancial Analyst courseclick on the WhatsApp icon at the side of this blog and get in touch with our experts directly.

How much does a financial modelling course cost?

The financial modelling Certificate Course costs around INR 7000 to INR 40,000. The B.Com (Hons.) in Financial Modelling costs approximately INR 90,000 + GST. And the Post Graduate degree in Financial Modelling costs Approximately INR 3,00,000.

Are financial modeling courses worth it?

Financial modelling courses when complemented with a Chartered Financial Analyst degree boost your career prospects to an international level and open doors to the best opportunities. This surely makes financial modeling courses worth it.

Is financial modeling in demand?

Yes, Financial Modelling Experts are always in demand as with the changing times it is becoming extremely important for organisations to operate only with the help of the right financial model.

Is Financial Modeling difficult?

Financial modeling, as a course, is moderately difficult. However, with the right coaching and mentorship, it can be quite a seamless learning journey.

What is Financial Modelling? Course Detail (3)

Partham Barot is an ACCA-certified professional. showcasing his expertise in finance and accountancy. he’s revolutionising education by focusing on practical, real-world skills. Partham’s achievements underscore his commitment to elevating educational standards and empowering the next generation of professionals.

What is Financial Modelling? Course Detail (2024)

FAQs

What is Financial Modelling? Course Detail? ›

The Financial Modelling is a toolkit teaching essential money skills for running a business. It helps students understand and plan a company's finances, predicting future outcomes based on past performance. Financial models assist in decision-making, cash flow management, and assessing business performance.

What do you learn in a financial modelling course? ›

Financial modeling combines accounting, finance, and business metrics to create a forecast of a company's future results. The main goal of financial modeling is to accurately project a company's future financial performance.

How do you explain financial modeling? ›

What Is Financial Modeling? Financial modeling is the process of creating a summary of a company's expenses and earnings in the form of a spreadsheet that can be used to calculate the impact of a future event or decision.

Is financial modeling a hard class? ›

Learning financial modeling is challenging due to the complex formula logic and hidden assumptions involved. It requires technical and mathematical skills, as well as problem-solving and decision-making abilities. Financial modeling is more challenging to learn than accounting and investing.

Can I learn financial modeling on my own? ›

To become skilled at financial modeling, you typically need to develop advanced Excel proficiency skills, have accounting and business knowledge, and know how to create simple models. Learning financial modeling on your own requires more legwork than taking a course.

What are the benefits of financial modeling course? ›

Benefits of Financial Modelling in 2024

Enhances decision-making processes. Facilitates strategic planning for businesses. Enables professionals to predict and analyze financial trends. Supports capital raising, mergers, and acquisitions.

How long does it take to learn financial modeling? ›

The time it takes to learn financial modelling varies based on individual factors. Prior knowledge, learning resources, practice, and the complexity of the models all matter. While some might grasp the basics in a matter of weeks, mastering financial modelling can take several months to a year or more.

Is financial modelling a good career? ›

If you are interested in working in the finance and accounting sector, this course is a good career path to start. One who wants to make a career in the financial sector can choose the financial modeling course.

How much do financial modelers make? ›

Financial Modeling Analyst Salary. $70,000 is the 25th percentile. Salaries below this are outliers. $116,500 is the 90th percentile.

Who should learn financial modeling? ›

Key professional roles that require financial modeling skills include Investment Bankers, Private Equity Professionals, Real Estate Developers, Commercial Bankers, Equity Research Analysts, and Venture Capitalists.

Who should do a financial modelling course? ›

Financial Modelling is a vital skill for finance professionals, addressing real-world challenges. As global demand for financial expertise rises, students from diverse backgrounds, including MBA, B-Tech, CFA, and Investment Banking, recognize its value for lucrative job opportunities.

Are financial modeling courses worth it? ›

But they can also prove to be helpful as continuing education courses for people who already work in the industry. As the field of financial modeling encompasses a vast array of modeling tools and techniques, it potentially offers many years' worth of ongoing training.

Are financial modelling courses worth it? ›

It is a valuable, reliable method that helps many businesses grow. It is also why financial modelling analysts are in high demand. Many established professionals such as investment advisors, tax specialists and accountants got a head start in their careers by learning this essential skill.

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