Modeling

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Estimating WACC for Private Company Valuation: A Tutorial

by David Turney

The discount rate is a critical input in any discounted cash flow valuation analysis. How does an analyst estimate a reasonable discount rate for a private company that has no publicly traded debt or equity? This article focuses on best practices for estimation of the WACC in the context of a private company valuation. The discussion begins with an overview of the WACC, background on the components of the WACC, methods to estimate the WACC components for private companies, and an example of how to apply this framework to estimate a privately-held building materials company.

16 minute readContinue Reading
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Advanced Financial Modeling Best Practices: Hacks for Intelligent, Error-Free Modeling

by Alberto Mihelcic Bazzana

From abstract spreadsheets to real-world application, financial models have become an inextricable part of business life and an indispensable part of every company’s toolkit. But irrespective of its ubiquitousness as a productivity and decision-making tool, many out there still have a love-hate relationship with it. Finance expert Alberto Bazzana authors a comprehensive “how-to guide”, for both the novices and experts among us, detailing Wall Street’s best practices for intelligent, effective, and error-free financial modeling.

17 minute readContinue Reading
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Why Every Business Should Build Weekly Cash Flow Forecasts

by Marty Mooney

When most finance professionals hear the term “13 week cash Forecast,” they view it as a burden—one more task to appease an overbearing lender. It doesn’t help that it seems less exciting than analyzing an investment or acquisition. Therefore, people often only prioritize these forecasts in distressed situations, when it is too late to take corrective actions. However, in this article, Toptal Finance Expert Marty Mooney argues that weekly cash forecasts are crucial for all businesses, irrespective of size, health, or sector. It also provides a simple tutorial for efficiently building such analyses.

18 minute readContinue Reading
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Power Pivot for Excel Tutorial: Top Use Cases and Examples

by Ellen Su

With the arrival and growing ubiquity of big data, Excel, as a data-mining and processing tool has been pushed to its limits—reflected in its dated 1,048,576 row hard limit and the application’s processing speed slowing to a crawl. As of 2010, Microsoft released a Power Pivot function that transformed the scope and usefulness of Excel where the extraction, combination, and analysis of large datasets are concerned. Using live cases, Finance Expert Ellen Su explores in detail how to master Power Pivot and explores its hidden advantages as a big data tool.

17 minute readContinue Reading

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