Financial modeling involves building a forecast of how an organization is expected to perform financially in the future. These forecasts are created based on various assumptions and how the organization has performed in the past. Watching video tutorials online is a popular method of learning financial modeling. They provide an accessible learning format, and students can watch them from any location at any time. This article will cover a range of videos, including what they teach and where to find them.

What is Financial Modeling?

Financial modeling is the process of evaluating a company’s past performance to predict the likelihood of various financial outcomes. Those who create financial models rely on financial forecasts to do so. The assumptions in a forecast are played out using the organization’s financial statements to predict how various statements may look in the future. Since these models are based on financial statements, they are typically generated monthly, quarterly, or yearly. It’s common for financial models to be constructed using manual data entry in an Excel spreadsheet. 

Financial modeling is a valuable tool for estimating how a business or a specific project will perform based on relevant factors, as well as risk assumptions and growth, then evaluating their impact. This process helps to present a concise understanding of the variables used to make financial forecasts. Those who create financial models either build them from scratch or work with existing models, making changes based on newer data that’s become available since its creation. Because financial situations are complex and can change quickly and rapidly, financial modeling helps to create a detailed understanding of the different components.

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What Can You Do with Financial Modeling?

Without well-executed financial modeling, any business operation would be analogous to a ship floating aimlessly in the sea with no navigation system. Although one could use gut instinct to steer the ship in the correct direction, there would be no guarantee that this course would be accurate. The more sound a financial model is, the less unnecessary risk a business will likely encounter. And the less likely it will be to drift aimlessly. 

Financial modeling has numerous applications across industries. Strong financial models are the backbone of many businesses and are a critical component to help them continue to grow and mitigate risk. Financial models provide a way to perform a detailed analysis of all possible financial outcomes of a business decision. These models seek to avoid loss as well as increase profits.

Financial modeling is a powerful tool for a range of financial analysis tasks. It can help an organization budget for the future and analyze the company’s performance against goals and targets. It also can be used for business valuation. Financial models allow individuals to compare one company’s performance against its competitors. It is often used to analyze financial statements, ratios, and capital structure, as well as to estimate financial metrics for new projects. Not only are these models imperative for solving problems, but they are used to make decisions about future outcomes. Some of the many decisions financial models can help with are estimating a company’s projected growth, organizing its budget, choosing investments, deciding between acquisition or merger, and deciding which projects should be prioritized.

Why Are Video Tutorials Helpful When Learning Financial Modeling?

If you are new to creating financial models and want to explore this process on your own before committing to a regular course of study, video tutorials are a great starting point. A wide range of video content is available about financial modeling, which means you can find beginner-friendly and more advanced tutorials. You can watch videos as often as you want; they can also be paused and rewound, which can help facilitate note-taking. You can access them on desktop devices, laptops, and even phones, meaning the content is accessible from any location with an internet connection. This learning method is perfect for busy individuals looking to balance their financial modeling study with travel or other commitments.

Another benefit of learning financial modeling basics via video tutorials is that they are a cost-effective learning option. Whereas in-person study or certificates can cost hundreds or thousands of dollars, online financial modeling videos are much more affordable. Some videos are even available for free from top educational providers. While it can be challenging to master complex financial modeling skills via video tutorials alone, these resources are a good place to start on your learning path.

Types of Financial Modeling Videos

One excellent resource for financial modeling videos is Noble Desktop. They offer a variety of short YouTube videos designed to help learners get started with financial modeling. Each video is just a few minutes long and covers topics like Foreign Exchange, Interest Rates and the Fed, and Understanding Terminal Value

If you’re interested in learning more about the stock market, Noble Desktop’s Stock Market Investing Fundamentals is a good starting point. This hour-long video teaches investing fundamentals, such as what bonds and stocks are, how to price them, and the basics of valuation. Noble’s Finance & FinTech YouTube playlist can also help you master specific financial modeling concepts and skills. 

Other top educational providers also have financial modeling videos. Corporate Finance Institute offers the short YouTube video What is Financial Modeling? This five-minute video includes a detailed description of financial modeling and how you can use Excel for forecasting. For a more detailed overview of financial modeling, The WallStreet School’s How to Build a Financial Model in Excel is available, which provides over two hours of beginner-friendly insights into using Excel for financial modeling.

Why Learn Financial Modeling?

Financial models have a range of uses for businesses of all sizes. They can provide an overview of how much a company is worth before it goes public and whether it’s eligible for a loan or financing options. Budget forecasting models are a valuable tool for those working in finance to understand how the organization is performing based on input from different departments. Financial models also help evaluate potential outcomes of management decisions before they are executed, which can help predict any changes to revenue that may be associated with raising the price of a product. In addition, investors sometimes work with financial models to establish how likely a company is to repay its debts.

Financial models are extremely valuable for organizations because they provide a simple way to calculate performance and anticipate outcomes. Not only can these models provide insights into the risks of implementing decisions, but they can also offer a financial statement that highlights how a company is operating financially. Although there are many different kinds of financial models, they all present a comprehensive overview of how an organization performed in the past, where it currently stands, and what can be expected in the months and years ahead.

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How Difficult is It to Learn Financial Modeling?

The field of finance can be complicated to understand, and financial modeling is considered one of the most challenging tasks in this field. Unlike other branches of finance that are specifically backward-looking or forward-looking, financial modeling has to look both ways simultaneously. In addition, there are many hidden assumptions the individual creating a model may not be aware of and, therefore, cannot be completely accurate.

Another contributing factor to how difficult it is to perform financial modeling is the level of detail that has to be built into the model. In an ideal scenario, a decision-maker would approach the information with as much granularity as possible, and the model would allow the user to drill down data from the aggregate level to the granular. It is up to the Financial Modeler to create this ability. This means they must fully understand how the numbers work on a micro and macro level. In addition, to be a successful Financial Modeler, it’s essential to be an expert working with technology to convey the process as a reusable model. For this reason, those who perform financial modeling must wear many hats and have expertise in various fields. 

Financial modeling is a process that involves a variety of skills and tools. Those who create financial models must have an understanding of finance and accounting and a grasp of how the economy works. In addition, one of the most widely used programs for financial modeling is Microsoft Excel. This spreadsheet application is available as part of a subscription that includes other Microsoft 365 apps, such as Word, PowerPoint, Teams, and OneDrive. Microsoft 365 Business Basic is available for $6/user/month. If you want to explore Excel before committing to buying a subscription, Microsoft offers a free Excel trial

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Learn Financial Modeling with Hands-on Training at Noble Desktop

Noble Desktop offers several excellent learning options for those interested in studying financial modeling. Noble’s Financial Modeling Bootcamp covers the basics of accounting, finance, and corporate valuation. Those enrolled in this hands-on class work with Excel to create a discounted cash flow model. Students who don’t have a background in accounting or finance will be sent a short guide on terminology before class starts. All participants should have intermediate Excel proficiency as a prerequisite.

Noble’s Financial Analyst Training Program provides learners with instruction on pertinent corporate and financial concepts and how to create a full valuation model. This intensive program teaches core Excel skills, like how to work with PivotTables and shortcuts, as well as advanced Excel techniques, including cash flow projection tools and Goal Seek. All students will create an integrated, three-statement financial model based on current financial data.

Noble also offers financial modeling training courses in-person and live online. Those interested in learning more about how to use Excel for modeling can attend the Excel Bootcamp. In addition, FinTech courses such as Python for Data Science Bootcamp, Algorithmic Trading With Python, and FinTech Bootcamp are also available. Noble’s FinTech Bootcamp provides hands-on training from expert instructors in creating machine learning models, using programming languages like SQL and Python to analyze financial data, and working with various types of data, such as integers, strings, and floats. One-on-one mentoring and the option of a free course retake is included for all participants.