Category Archives: Financial Projections

Learn everything you need to know about financial projections. Forecasting revenues, expenses, and cash flow for strategic planning.

Precedent Transaction Analysis: How to Value M&A Deals Using Market Data

Excel Financial Modeling - Sheets Market

Precedent transaction analysis (PTA) is a market-based valuation method that derives implied company value from historical M&A transactions. Unlike trading comps, which reflect ongoing public company valuations, PTA captures control premiums and deal-specific dynamics. It is a critical tool in M&A negotiations, fairness opinions, and strategic planning. Model Mechanics: Structure, Inputs, and Outputs A well-constructed

Optimal Portfolio Allocation: 3-Asset for Maximum Returns

Excel Financial Modeling - Sheets Market

Asset allocation is the primary driver of portfolio performance. While diversification reduces idiosyncratic risk, only optimized allocation maximizes risk-adjusted returns. A 3-asset model (typically comprising equities, bonds, and cash or alternatives) offers sufficient complexity for tactical allocation while maintaining analytical clarity. Model Structure: Inputs, Constraints, Objective A robust optimization model in Excel requires clearly defined

Stock Valuation in Excel: Forecasting & Key Financial Metrics

Excel Financial Modeling - Sheets Market

Stock valuation requires methodological discipline. Excel enables structured, transparent, and replicable valuation frameworks – if models are designed with clarity and control. Poorly structured models obscure assumptions, introduce error, and misguide decisions. Structured architecture is non-negotiable. Model Structure: Critical Components A robust Excel model must separate logic, inputs, and outputs. Each module should serve a

How to Analyze Financial Statements: A Complete Guide for Investors

Analyze Financial Statements

Financial statement analysis is a cornerstone of sound investment decision-making. Whether you’re a seasoned investor or just starting, understanding how to dissect and interpret financial statements is critical to evaluating a company’s performance, profitability, and financial health. This guide will walk you through the process and provide clear explanations to help you make informed investment

How to Perform Financial Forecasting: Methods & Best Practices

financial forecasting

Financial forecasting is a critical component of strategic business planning. It allows organizations to anticipate future financial performance, allocate resources effectively, and make informed decisions. Whether you’re a startup founder, or a small business owner, mastering financial forecasting is essential for sustainable growth. This comprehensive guide will explore the methods, best practices, and actionable insights

Financial Ratio Analysis: How to Evaluate a Company’s Performance

Financial Ratio Analysis

In finance and investing, understanding a company’s performance is crucial for making informed decisions. It allows you to dig deep into a company’s financial statements, uncover insights, and assess its health, profitability, and growth potential. In this comprehensive guide, we’ll explore the art and science of financial ratio analysis, breaking down the key ratios, their

Investment Analysis in Excel: How to Evaluate Stocks and Portfolios

Investment Analysis in Excel

Investment analysis is critical for traders, investors, and financial professionals. Whether you’re evaluating individual stocks or an entire portfolio, Excel remains one of the most powerful tools for performing financial analysis. With its vast array of functions, data handling capabilities, and automation features, Excel enables users to make informed investment decisions efficiently. In this guide,

Industry and Sector Analysis: How to Assess Market Trends & Risks

Industry and Sector Analysis

Industry and sector analysis is a crucial component of strategic decision-making for businesses, investors, and policymakers. Whether you are an entrepreneur looking to enter a new market, an investor evaluating potential opportunities, or a business executive developing long-term strategies, understanding market trends and risks is essential.  A well-executed analysis helps identify growth opportunities, understand competitive

Financial Analysis for Beginners: Key Ratios & Techniques

Financial Analysis for Beginners

Financial analysis is a cornerstone of sound business decision-making. Whether you’re an investor evaluating a potential stock purchase, a manager assessing your company’s performance, or an entrepreneur planning your next move, understanding financial analysis is essential. This blog will guide you through the fundamental financial ratios and techniques that form the backbone of financial analysis.

Break-Even Analysis: How to Determine Your Business’s Profitability

Break-Even Analysis

More than 50% of businesses fail within the first five years—not because they don’t have great products or services, but because they miscalculate their costs and pricing. Many business owners assume that as long as sales are coming in, they’re on the right track. But without knowing the exact point where revenue covers expenses, they