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 ?

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2 Comments

Ricqles

O

17y

..

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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dayaaam

IB

17y

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Authored by: Certified Investment Banking Professional - 2nd Year AnalystCertified Investment Banking Pro

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Difference between valuation and financial model

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Difference between valuation and financial model

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