Describe ‘financial modeling’.

Quantitative analysis of financial data is widely used for asset pricing as well as general corporate finance. To predict the future impact of today's decisions, a company's expenses and earnings are taken into account (often in spreadsheets).

The financial model also turns out to be a very impactful tool for the following tasks:

• Estimate the valuation of any business
• Compare Competition
• Strategic planning
• Testing different scenarios
• Budget planning and allocation
• Measure the impacts of any changes in economic policies

You can also share your experience through different financial models, including discounted cash flow models (DCF), initial public offerings (IPOs), leveraged buyout models, consolidation models, etc., since financial modeling is one of the most important primary skills.