Financial Modeling in Excel For Dummies

Title Page
Copyright Page
Table of Contents
Introduction
	About This Book
	Foolish Assumptions
	Icons Used in This Book
	Beyond the Book
	Where to Go from Here
Part 1 Getting Started with Financial Modeling
	Chapter 1 Introducing Financial Modeling
		Defining Financial Modeling
			What it is
			Who uses it
			Why it matters
		Looking at Examples of Financial Models
			Project finance models
			Pricing models
			Integrated financial statement models
			Valuation models
			Reporting models
	Chapter 2 Getting Acquainted with Excel
		Making Sense of the Different Versions of Excel
			A rundown of recent Excel versions
			Focusing on file formats
		Defining Modern Excel
		Recognizing the Dangers of Using Excel
			Capacity
			Lack of discipline
			Errors
		Looking at Alternatives and Supplements to Excel
	Chapter 3 Planning and Designing Your Financial Model
		Identifying the Problem That Your Financial Model Needs to Solve
		Designing How the Problem’s Answer Will Look
		Gathering Data to Put in Your Model
		Documenting the Limitations of Your Model
		Considering the Layout and Design of Your Model
			Structuring your model: What goes where
			Defining inputs, calculations, and output blocks
			Determining your audience
	Chapter 4 Building a Financial Model by the Rulebook
		Document Your Assumptions
		Create Dynamic Formulas Using Links
		Only Enter Data Once
		Model with Consistent Formulas
		Build in Error Checks
			Allowing tolerance for error
			Applying conditional formatting to an error check
		Format and Label for Clarity
	Chapter 5 Using Someone Else’s Financial Model
		Considering Templates for Building a Financial Model
			Why templates can be appealing
			What’s wrong with using templates
			Why you should build your own model
		Inheriting a File: What to Check For
			Meeting a model for the first time
			Inspecting the workbook
		Using Audit Tools to Find and Correct Errors
			Checking a model for accuracy
			Making sense of the formulas
		Sharing and Version Control
Part 2 Diving Deep into Excel
	Chapter 6 Excel Tools and Techniques for Financial Modeling
		Referencing Cells
			Relative cell referencing
			Absolute cell referencing
			Mixed cell referencing
		Naming Ranges
			Understanding why you may want to use a named range
			Creating a named range
			Finding and using named ranges
			Editing or deleting a named range
		Dynamic Ranges
		Linking in Excel
			Internal links
			External links
		Using Shortcuts
		Restricting and Validating Data
			Restricting user data entry
			Creating drop-down boxes with data validations
			Protecting and locking cells
		Goal Seeking
			Limiting project costs with a goal seek
			Calculating a break-even point with a goal seek
	Chapter 7 Using Functions in Excel
		Identifying the Difference between a Formula and a Function
		Finding the Function You Need
		Getting Familiar with the Most Important Functions
			SUM
			MAX and MIN
			AVERAGE
			COUNT and COUNTA
			ROUND, ROUNDUP, and ROUNDDOWN
			IF
			COUNTIF and SUMIF
			Reporting sales with SUMIF
			VLOOKUP, HLOOKUP, and XLOOKUP
		Being Aware of Advanced Functions and Functionality
	Chapter 8 Applying Scenarios to Your Financial Model
		Identifying the Differences among Types of Analysis
		Building Drop-Down Scenarios
			Using data validations to model profitability scenarios
			Applying formulas to scenarios
		Applying Sensitivity Analysis with Data Tables
			Setting up the calculation
			Building a data table with one input
			Building a data table with two inputs
			Applying probability weightings to your data table
		Using Scenario Manager to Model Loan Calculations
			Setting up the model
			Applying Scenario Manager
	Chapter 9 Charting and Presenting Model Output
		Deciding Which Data to Display
		Conveying Your Message by Charting Scenarios
		Deciding Which Type of Chart to Use
			Line charts
			Bar charts
			Combo charts
			Pie charts
			Charts in newer versions of Excel
		Dynamic Charting
			Building the chart on formula-driven data
			Linking the chart titles to formulas
			Creating dynamic text
		Preparing a Presentation
Part 3 Building Your Financial Model
	Chapter 10 Building an Integrated Financial Statements Model
		Getting to Know the Case Study
		Entering Assumptions
			Revenue assumptions
			Expense assumptions
			Other assumptions
		Calculating Revenue
			Projecting sales volume
			Projecting dollar sales
		Calculating Expenses
			Staff costs
			Other costs
			Depreciation and amortization
		Building the Income Statement
		Building the Cash Flow Statement
		Building the Balance Sheet
		Building Scenarios
			Entering your scenario assumptions
			Building a drop-down box
			Building the scenario functionality
	Chapter 11 Building a Discounted Cash Flow Valuation
		Understanding How the Discounted Cash Flow Valuation Works
		Step 1: Calculating Free Cash Flow to Firm
		Step 2: Calculating Weighted Average Cost of Capital
		Step 3: Finding the Terminal Value
		Discounting Cash Flows and Valuation
	Chapter 12 Budgeting for Capital Expenditure and Depreciation
		Getting Started
			Making a reusable budget model template
			Creating dynamic titles
		Output 1: Calculating Cash Required for Budgeted Asset Purchases
		Output 2: Calculating Budgeted Depreciation
			Useful life
			Written-down date
			The depreciation schedule for the current year
			Depreciation in prior periods
		Output 3: Calculating the Written-Down Value of Assets for the Balance Sheet
Part 4 The Part of Tens
	Chapter 13 Ten Strategies for Reducing Error
		Using the Enter Key
		Checking Your Work
		Checking It Again
		Getting Someone Else to Check Your Work
		Documenting Assumptions
		Documenting Methodology with a Flowchart
		Stress-Testing with Sensitivity Analysis
		Conducting a Scenario Analysis
		Taking Note of Excel Error Values
		Including Error Checks
	Chapter 14 Ten Common Pitfalls to Avoid
		The Numbers Don’t Add Up
		You’re Getting #REF! Errors
		You Have Circular References
		The Model Has Too Much Detail
		The File Size Is Out of Control
		Your Model Is Full of “Spaghetti” Links
		The Formulas Are Unnecessarily Long and Complicated
		No One Is Paying Attention to the Model
		You Don’t Want to Let Go
		Someone Messes Up Your Model
Index
EULA