6 Factors That Would Help You Choose the Perfect Financial Modeling Firm
Financial modeling is one of the founding stones of equity research. It helps in gaining perspective of a company’s past performance and future prospects, as well as facilitates investment decision making. The 6 factors outlined below can help identify the best financial modeling firm for you for conducting Investment Research on a Company: Company’s reporting structure : A model is generally viewed in conjunction with a company’s financial reports. It is vital to develop a financial model that reflects the company’s style of reporting in terms of content and structure. This makes the model more relevant compared with a generic template that shows broadline or clubbed figures. Comprehensive revenue model : A revenue model should help understand the principal question – How does the company earn money? An ideal revenue model breaks down a company’s revenue segment-wise, links the important KPIs to the revenue, and helps analyze dependencies of those KPIs on the revenue. The model mus