Difference between valuation and financial model
This was the question I was asked (in an interview) yesterday -
Can you explain to me the difference between financial model and valuation ?
This was the question I was asked (in an interview) yesterday -
Can you explain to me the difference between financial model and valuation ?
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you use financial models to do valuation
but valuation only gives you how much the company is worth, not necessarily the different transaction cases
then you enter different transaction cases in the financial model to tweak the capital structure that give you other future projections
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