Financial Modeling
Financial Modelling
Financial Modelling is a key skill with application in several areas within banking and finance industry as well as within corporations. In financial modelling you learn to gather historical information on companies and analyze company / industry performance on various financial parameters. This analysis is then used to build a companies financial model, which in turn is key to projecting a future financial performance. Based on this model companies investors can arrive at a suitable evaluation for the companies. Individuals with these skills can work in the areas of investment banking / equity research/trading, financial KPOs that are assisting investment bankers / equity research firms, financial advisory firms, project finance and in the area of performance tracking and MIS for companies themselves.
Career Options in Finance Sector
Financial KPOs:
Knowledge Process Outsourcing (KPO) has emerged as a newfast growing business sector. Lot of finance companies currently outsource research and financial analysis functions to KPOs because it is cost effective for them. When outsourcing of financial research started a few years back it was considered as low complexity back room information support for Investment Analysts frombuy side and sell side firms.This activity has now moved up the value chain considerably and the world of outsourced research has evolved significantly for many reasons. Among themsomeof the prominent reasons are:
Regulatory changes that are pushing for transparency.Investment Banks doing research were not
considered being completely unbiased. Need for Investment Banks toremainprofitable. Research expertise was earlier used as marketing and promotional tool by Investment banks toattract clients. Research was basically a cost center activity. With most investment banks under profit pressure, and research no longer a marketing tool, investment banks have started strategic initiatives to outsource research to independent research institutions who are capable of doing at a fraction of the cost. The above trend has led to the growth of the outsourced research activity; many of these firms are located in India. Some of the well known firms in this field who established their presence are: Adventity, Gridstone Research, AMBA Research, Evalue Serve, Copal Partners, Irevna, Capital IQ, DE Shaw, Aranca, Netscribes, ICRA, CMIE, Capital Markets, Dwan A Day Analytics, Care Ratings, Value Notes, Viteos Capital Markets. Research work carried out by these firms includes:
Detailed research to recommend buy/sell price on companies under coverage. There are over 90,000 listed stocks on global exchanges and each one have to be valued onaregular basis.Create Excel based models to get the understanding of business drivers, incorporate assumptions, risk factor and possible valuation of company. In-depth scrutiny and analysis of Company cash flows and financial statement to verify the authenticity of disclosures, to prevent malpractices like Enron, Worldcomand Satyam.
Analyzetheattractivenessof IPO.Complete macro understandingof the sectors to identify investment opportunities. The sectors covered are typically Financial Services, Retail, Information Technology & Telecommunication, Business Services, Oil & Gas,Metal s& Mining, Energy, Utilities. Identifying Target companies formergers , acquisitionsor sell out.
Analysis to bench mark performance with pees in the sectors. Carry out research on various stock exchanges, commodity exchanges on the movements and predict future trends. Research and Valuation Models to arrive at transaction valuation for companies preparing to merge or acquire. Information gathering from various sources, organizing the data collected, validating the data and providing the data to analysts. Companies need to analyze their own finances, buildfinancial models for their own projects and hence often employ analysts within the company. There are also financial advisory companies who provide these services to corporations as an outsourced model. Most fresh graduates in these firms start as research assistants and assist senior analysts in creating reports. As a research assistant one has to collect, and normalize data, build the financial model, make the report and track the announcements/ developments on the company. These firms need candidates who have strong analytical skills and specific domains knowledge in the field of financial modelling.
Program Content
IMS Program:
The prime objective for this course is to groom candidates for specialized obs in Finance sector which require financial analysis and modelling skills. This program aims to impart necessary skills required to perform the role of a financial Analyst. The program equips students with the practical skill sets required to perform Financial modelling, valuation and anlaysis through Excel. The program comprises of the following modules:
Accounting Fundamentals.
Economic Analysis.
Financial Management.
Financial Markets.
Excel Proficiency.
Financial Modelling.
Valuation Methods.
Report Writing.
Sector Overview.
About Proschool
What are the Challenges?
At IMS, our goal for the past 33years has been simple
KOLKATA
Program Content:
– Build a long term successful career for our students.
IMS Proschool is an extension of the same mission although the route is different.
Economic growth over the past decade has created new opportunities for students and IMS Proschool is helping students tap these opportunities. How?-
Growth in almost every sector has created a shortage of skilled man power and that we have heard from almost every CEO by now (read news stories). IMS Proschool’s goal is to provide these industry relevant skills to its students in the shortest possible time, get them quality jobs that give them quality experience and create a long term career for them. In the process, we will also help the industry solve its manpower issues.
For more information on Financial Modeling program please visit NSE India( National Stock Exchange
website http://www.nseindia.com/content/ncfm/ncfm_ibam_fmpros.pdf
10 D, IMS HOUSE,
Hungerford Street,
Kolkata – 700019.
Email ID : [email protected]
Tel. No.: 09830828036
Website: http://proschool.imsindia.com
NCFM Certification|Financial Modeling
