The most comprehensive educational resources for finance

Financial Modelling: Excel Shortcuts You Must Know

In the previous lesson, we learned about how to setup excel for productivity. We will now look at the important and commonly used shortcuts in excel that can speedup your financial modelling work. General F2 – Edit Cell F4 – Repeat Last Action Ctrl + Z – Undo Last Action Ctrl + O – Open

Financial Modelling: Writing Formulas in Excel

In have already looked at the excel keyboard shortcuts that you must know to become productive with excel. The next thing we will look at is how to write effective formulas. This is an important topic and I believe the quality of your financial model will depend on how well you write the formulas. There

Financial Modelling: Setup Excel for Productivity

This article is a part of our blog posts on how to build simple, readable and better financial models. The objective is to teach you how to be more productive, make lesser errors and make it easy for others to use the financial models build by you. The first step in building a successful financial

Financial Modeling: How to Build a Complete Model with Excel

A step-by-step course on how to build a financial model directly based on Train the Street’s live courses at top Wall Street firms. This intensive course is designed to develop financial modeling skills through actual hands-on construction of a model, and is the online version of Training The Street’s live courses at Wall Street’s 10

Financial Modeling: Implement Financial Models in Excel – Book Review

Anyone who is interested in understanding and applying financial modeling would be advised to read the excellent Financial Modeling, 4th edition by Simon Benninga. The primary intent of this book and it’s previous editions has been to use Excel to develop and implement financial models. The author has added six additional chapters in the 4th

Building Financial Models – Book Review

John Tjia’s Building Financial Models is the book if you’d like to learn how to create an integrated financial statement projection model. Not just a spreadsheet for financial calculations and analysis but one where the income statement, the balance sheet and cash flow statement are interconnected using Excel formulae. Tija’s book covers important areas of

Jensen’s Alpha Calculator in Excel

The Jensen’s Alpha is a popular risk-adjusted performance measure used by portfolio managers to determine how much excess returns their portfolio has generated over and above the market returns as suggested by the CAPM model. A positive alpha indicates that the portfolio has outperformed the market, and vice versa. The Jensen’s Alpha can be calculated

Avoid These Common Financial Modeling Mistakes

Building a financial model can be a complex task, especially when you’ve already spent a lot of time setting up formulas, and conditions, and now your model keeps throwing errors that you can’t figure out. A good financial analyst will follow certain discipline while building a financial model and will avoid any typical mistakes that

Using Excel’s Goal Seek Function to Estimate Implied Volatility

In this video, you will learn how to estimate implied volatility. Using the market price for an option on Google’s stock, the video demonstrates how to use Excel’s GOAL SEEK function to estimate implied volatility. Implied volatility is a reverse-engineering exercise: we find the volatility that produces a Model Value = Market Price. This video