Financial model: Difference between revisions
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Financial models are widely used as tools for valuation and to support financial decisions. | Financial models are widely used as tools for valuation and to support financial decisions. | ||
In simple terms, a model: | |||
*Presents a financial calculation (or calculations) | |||
*In a way that enables the user to understand it and to challenge it, especially about the assumptions. | |||
Revision as of 04:08, 31 December 2016
A simplified representation of a financial situation, using a selected set of assumptions and relationships.
Financial models are widely used as tools for valuation and to support financial decisions.
In simple terms, a model:
- Presents a financial calculation (or calculations)
- In a way that enables the user to understand it and to challenge it, especially about the assumptions.
