Every company or organization needs to have a unique model in all departments that should be followed to be successful. Maintaining your finances is one of the important aspects and this is where Financial Modeling comes into the frame. Let us look in detail at its scope, Financial Modeling courses in India, and the institutes that provide them.
What is Financial Modeling?
In simple terms, Financial Modeling is like our home budget but on a very large scale, so large that it needs a predefined model to be followed. Organizations use this model to calculate their earnings, expenses, taxes, and their future growth in the competitive market and share market.
But calculating the finances and predicting the future is a complex process and it is the reason why companies follow different financial models that suits their need. A good financial model can make a business grow in leaps and bounds over its competitors and so corporations expand a large sum of money on them.
The most frequent tool used for creating financial models in Microsoft Excel spreadsheets. However, there are dedicated software programs that provide financial modeling methods.
Why Financial Modeling?
As we saw earlier, Financial Modeling is a must for any institution, be it small or large, which eventually means the demand is high for this job. Whether you are a B. Com graduate, a CA graduate or you are studying any financial degree, or even someone who wants to work in the finance sector, learning any one of the Financial Modeling courses in India will add a huge boost to your portfolio.
You can even work as a freelance Financial Modeling Expert once you have acquired the required skillset. There are scores of opportunities in financial modeling for people who want to go mainstream and get a job and also for people who would like to have a passive income.
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Career Options and Salary:
There are numerous career options when you want to work in the finance sector. The options range from part-time jobs with an income of a few thousand to a full-time job where you have the chance to earn lakhs. Having a certification from one of the best Financial Modeling Courses in India will add value and you will end up getting your preferred job sooner.
It is one of the jobs that will take you around the world and may get you into the famous Wall Street if you are willing to pursue it till the end. It is one of the high-paying jobs in the finance sector. Investment banks serve as a link between large corporations and investors, advising companies and governments on how to address financial concerns and the best ways to obtain cash, whether through stock offerings, bond issues, or derivatives.
Investment banks also assist with the pricing of financial instruments to maximize revenue, navigating regulatory requirements, underwriting new debt and equity securities for all types of corporations, assisting in the sale of securities, and assisting institutions and private investors with mergers and acquisitions, reorganization, and broker trades.
Average Salary per annum
11 lakhs (Glassdoor)
9.61 lakhs (Upgrade)
9.25 lakhs (Payscale)
Check Which Popular Financial Modeling certifications are in-demand these days.
2. Budget Analyst
Budget analysts’ key responsibilities include establishing a company’s budget. According to the Bureau of Labor Statistics, this may need the analyst to collaborate with project and department managers, as well as stakeholders, to determine the advantages and costs of various programs. Budget analysts also do research, analyze results, and examine financial records. The analyst may provide recommendations for spending savings and funding levels throughout the process.
Average Salary per annum
12 lakhs (Glassdoor)
6.98 lakhs (Indeed)
8 lakhs (Payscale)
3. Portfolio Manager
Portfolio management is a strategy for maximizing returns while keeping your investment objectives, risk tolerance, and asset exposure in mind. It also considers investing in various investment instruments while keeping your investment aim and tenure in mind. Account managers typically conduct a SWOT analysis on your investment goal before deciding on an investment strategy to best manage your portfolio.
Average Salary per annum
11 lakhs (Glassdoor)
10.27 lakhs (Payscale)
4. Public Accountant
Any individual who keeps and analyses financial records is known as an accountant. CPAs, on the other hand, are not limited to a single industry or even a single job function. Because of the knowledge learned in test preparation and continuing professional education (CPE) requirements, CPAs can undertake other services in addition to preserving and interpreting financial records.
Average Salary per annum
5.26 lakhs (Indeed)
6.96 lakhs (Payscale)
5. Risk Analyst
Here you calculate and estimate individual and combined risk variables for your organization using a variety of methods. The particular causes will vary depending on your organization, but interest rate, stock, currency, and commodity price variations are all common worries.
You use data from historical behavior to produce forecasts about future changes using several carefully designed financial equations and computer tools. You can use these models to evaluate the level of risk that your organization bears on a particular subject.
Average Salary per annum
5.5 lakhs (Glassdoor)
5.17 lakhs (Payscale)
Types of Financial Modeling:
When it comes to the types of Financial Modeling, there are ten main types of them and here, we will take a look at the five most important models that are extensively used in various types of industries. These models have been tested time and again and have proved to be the best among all the models and the chances of profit for a company are high when these models are followed in the right manner by an expert in the field.
This model is also known as the “three-way financial” model and it consists of the Income statement, Cash-flow statement, and Balance sheet. Although not every form of the financial model must include all three types of financial statements, many do, and those that do are referred to as integrated financial statement models.
From the perspective of financial modeling, it’s critical that when financial modeling for an integrated financial statement occurs, the financial statements are appropriately connected so that if one statement changes, the others do as well.
Discounted Cash Flow (DCF) Model:
A DCF model is a sort of financial model that is used to value a company. The Net Present Value (NPV) model is a forecast of a company’s free cash flow discounted back to today’s value (NPV). To anticipate future cash flow, the Net Present Value of a corporation is determined. Some modifications are performed using the three-statement model, and then the company’s Weighted Average Cost of Capital (WACC) is determined using the NPV formula.
Merger (M&A) Model:
This falls under the Valuation category of financial models. The merger and acquisition (M&A) model calculate the effect of a merger or acquisition on the newly formed company’s earnings per share (EPS). The current EPS of the corporation can then be compared to this amount.
The M&A model can assist a corporation in determining whether or not a possible merger or acquisition will benefit the company’s bottom line. If the M&A model demonstrates that the acquisition would boost EPS, it is termed accretive, suggesting that it will result in growth. However, if the M&A model reveals a drop in EPS, the deal is considered dilutive, which means it will lower the company’s value.
Initial Public Offering (IPO) Model:
These financial models equate companies to study with an estimate of how much investors would be ready to pay for the business in question. An IPO discount is included in the valuation in an IPO model to ensure that the stock trades well in the secondary financial market. The IPO pricing model is made up of numerous separate components.
It will, for example, employ comparable company research to compare its P/E to industry rivals. Investment bankers will look at projected annual growth predictions for up-and-coming digital companies that have yet to earn a profit. This model also considers prior fundraising round valuations as well as what share price would be appealing to institutional investors that are IPO subscribers.
Leveraged Buyout (LBO) Model:
A leveraged buyout (LBO) is a business acquisition in which the primary source of consideration is debt. Typically, a private equity (PE) firm borrows as much as it can, from a variety of lenders (up to 70 or 80 percent of the purchase price) and then funds the remainder with its capital.
An LBO transaction usually necessitates financial modeling with loan schedules, which is a more complicated type of financial model. The various layers of financing create circular references and necessitate cash flow waterfalls, making an LBO one of the most complicated financial models.
Top 9 Institutes that offer various Financial Modeling Courses in India
Here is a list of the Top 10 best Financial Modeling Courses in India which will provide you with an idea about the syllabus, duration, certification, mode of learning, and their benefits.
1. The WallStreet School
The WallStreet School is a good name when it comes to Financial Modeling courses in India. They offer a good variety of modules including Precedent Transaction Analysis, Discounted Cashflow Valuation, Merger model, and Leveraged Buyout. They charge only 40% of the fee upfront and the remaining 60% is to be paid after placement.
They provide weekdays and weekend classes where you will have an eligibility interview to join weekday classes, and the weekend ones can be joined by anyone who has an interest in the finance sector.
- Course offered – Financial Modeling and Valuations
- Duration – Weekday (6 weeks-180hours); Weekend (2.5weeks-120hours)
- Fee – INR 40,000
2. Proschool by IMS
IMS Proschool has branches all over India and provides courses across various fields and works in association with the NSE Academy & National Skill Development Corporation (NSDC), Ministry of Skill Development, and the Government of India. They provide one of the best flexible Financial Modeling courses in India.
In Financial Modeling, they cover financial statement analysis, project finance, and equity modeling. Their course also includes certifications for VBA-Macros and Merger & Acquisition (M&A) and you are eligible to get certified under NSE Academy. Apart from online and offline classes, you also have the Distance Learning option. Preschool provides three modes of training i.e., classroom, online, and self-learning.
- Course offered – Financial Modeling
- Duration – 55+ hours
- Fee – Classroom – INR 40,000; Online – INR 32,000; Self-Learning – INR20,000
3. Imarticus Learning
This course is offered in association with KPMG India. This financial analyst course provides practical experience through case studies, seminars, and hands-on projects. It helps in simplifying the processes of corporate valuation, and financial modeling approaches.
You get a 25-hour exclusive training by KPMG experts and hands-on training with six industry projects. They make you interview-ready by taking mock interviews, body language, and etiquette sessions.
- Course offered – Financial Analysis Prodegree
- Duration – 180 hours
- Fee – Offline – INR 75,000; Online – INR 58,000
4. Corporate Finance Institute (CFI)
The certification provided by the CFI holds one of the highest values amongst the ones given by the many Financial Modeling courses in India. The course is taught by industry experts and has 7 preparation courses, 11 main courses, and 3 elective courses.
You can learn at your own pace with the material given. You are required to get a minimum of 70% in the final exam to complete this certification. Once you have passed the exam, you will get the FMVA certificate.
- Course offered – Financial Modeling and Valuation Analyst (FMVA)
- Duration – 6 months
- Fee – $497
Coursera provides online training which covers Quantitative Modeling, Wharton Business and Financial Modeling Capstone, Linear Programming, and other decision-making scenarios. Upon completion of the course, you will be able to use spreadsheets to map various financial scenarios. This online course allows you to work at your own pace and has a flexible schedule.
- Course offered – Business and Financial Modeling Specialization
- Duration – 6 months (if paced at 2hrs/week)
- Fee – INR 34590 (may vary according to the time taken to complete the course)
Wallstreetprep has one of the best self-studying Financial Modeling courses in India. This online course comes in two forms, the basic and the premium ones. Both are self-study ones and in the basic package, you will learn to build a 3-statement financial model and also perform sensitivity & scenario analysis.
The premium package consists of the Valuation modeling along with all the modules from the basic package. Here, you will learn DCF, Comps, M&A, and LBO modeling.
- Course offered – Financial Modeling (Basic & Premium)
- Duration – Basic (20-30 hours approx); Premium (70-90 hours approx)
- Fee – Basic – $199; Premium – $499
EduPristine offers this course in collaboration with the BSE Institute Ltd. The course module includes the Comparative Company Analysis model, Option Pricing model, and Sum-of-the-parts model. Along with the technical teachings, you are also trained in soft skills such as presentation skills, emotional intelligence, time management, and communication skills to make you industry-ready. The course also offers pre-recorded lectures and discussion forums as a self-study package.
- Course offered – Financial Modeling
- Duration – Classroom – 14 days (70 hours)
- Fee – INR 12,600
Udemy offers a large variety of Financial Modeling courses in India at an affordable rate. In this course, you will learn to build a cash flow statement and valuation model with various scenarios. It has lifetime access to resources and also a 30-day moneyback guarantee. This module includes 5 hours of on-demand video and 134 downloadable resources that can be accessed over mobile and TV.
- Course offered – Financial Modeling: Build a Complete DCF Valuation Model
- Duration – 5 hours 20 minutes (13 sections; 89 lectures)
- Fee – INR 3499
It also has courses for beginners such as “Introduction to Financial Modeling for Beginners” and “Beginner to Pro in Excel: Financial Modeling and Valuation” for the same fee.
9. LinkedIn Learning
LinkedIn has ventured into the online education field through their program Lynda. It has also started to give courses in languages other than English. Its financial modeling course teaches corporate financial models, investment models, banking models, and buyout models through MS Excel and is turning out to be one of the most sought-after Financial Modeling courses in India. It has downloadable exercise files and quizzes to get the much-needed practical experience.
- Course offered – Financial Modeling Foundations
- Duration – 3 hours
- Fee – INR 1610 per month (after 1 month’s free trial)
1. Who can pursue Financial Modeling?
Anyone who has an interest in the finance sector can pursue any of the above given Financial Modeling courses in India. Finance Professionals can upgrade their careers with one of the courses. Start-Ups should have one of these courses as a mandatory one. MBA and CA students can choose this to have a head start in their career.
2. What are the job opportunities for Financial Modeling?
There are a lot of job availabilities for these courses. Other than the career options we saw earlier, there are also various other jobs like Financial Analyst, Chief Financial Officer, Asset Manager, Equity Search Analyst, Credit Analyst, Personal Finance Advisor, and Venture Capital analyst, where most of them have a minimum package of 5 lakhs per annum.
3. Is Financial Modeling difficult?
If you love numbers then Financial Modeling is the right course for you. Initially, it might look a bit difficult but with the right guidance from a reputed organization, you will be able to break through your initial hesitation and come out with flying colors. Getting certified from any one of the institutes that provide Financial Modeling courses in India will go a long way in getting your dream job and start earning immediately.
4. Can engineering graduates learn Financial Modeling courses?
Of course. There is no restriction on who can learn these courses. If you have an interest in analyzing financial data and playing with numbers you can very well take up one of the courses and start your financial career straight away.
5. What is the initial salary I can expect in this domain?
As is the norm in any field, in the beginning, you have to work hard to get the experience and knowledge. Having said that the starting salaries in this sector are pretty handsome. A minimum of 4 lakh per annum is what you can expect when you start as a fresher and once you have become an expert there is no limit to what you can earn.
Any industry should have a keen eye on its finances not just to grow but also not to go in the wrong direction. So, industries need a great pool of resources to analyze, build, and maintain good Financial Models. Doing a course in this area will provide you with a wide range of job and freelance opportunities to choose from. Many institutes and organizations provide financial modeling courses and you can choose one that suits you according to the price, availability of time, and preferred mode of learning. Hurry, get enrolled in any of the Financial Modeling courses in India, and get on the ship to set sail on your route. Good luck with your journey!