Summary

In this chapter, we looked at the steps to be followed in building a financial model. We understood why it is necessary to have a systematic approach. We went through the steps from discussions with management through to calculating a valuation of the enterprise and the shares of the company, understanding the purpose and importance of each step.

In the next chapter, we will look at how we can use Excel formulas and functions to speed up our work and make modeling a more rewarding experience.