Analysis and Valuation Models - Build with a template model or build from scratch?

Each company and each analysis is different, however, the "bare-bones" fundamentals are the same for DCF, Comps, precedent transactions, etc.

So with that, do you guys build models and valuations from scratch (as in format, labels, sheets, cells, everything) or do you use a generic bare-bones template then modify accordingly?


Comments (9)

Nov 6, 2017

Hey Biriyo Neru, I'm the WSO Monkey Bot and I'm here since nobody responded to your thread! Bummer...could just be time of day or unlucky (or the question/topci is too vague or too specific). Maybe one of these topics will help:

  • How to conduct Due Diligence with 0 information on private company? best way to go about figuring things out like Financial Analysis/Valuation, Business Model, etc. ... website, 0 financials Its a startup with basically 0 information about them online My question is whats the ... Currently doing an investment analysis on a Private Company The only information I have is their ...
  • Can you trade using IB Financial Models? Tried trading before but couldn't really get into it with the way technical analysis skips ... to say, take a company and build a typical banking model (DCF /Comps/Precedents) and then use that ... Enterprise Value to trade over/under-valuations? I suppose this would more accurately be investing, not ...
  • On the Job With Simple As... My Research Process financial statement analysis and it's already unbearably long so I will refrain from going in to ... Valuation by McKinsey Accounting for Value Financial Modeling Investment Banking By this point my thesis is ... research process. So here you go... Every analyst has his/her own way of conducting due diligence. There ...
  • Easy companies to practice modeling with? building DCF / lbo models from scratch. I'll be applying to FT IBD next year but have had zero ... valuation class where we each did DCF and comps analysis. Thanks guys! 3 Statement Model cash flow modeling ... would be the easiest to begin practicing with. Ideally I'd like to build a list to start working ...
  • The 20 Minute DCF: Free Excel Template Download models in our financial modeling packages.(WSO users get 15% off!) From Axial You've probably built ... your valuation analysis? The discounted cash flow method is one of the most powerful ways to value ... a company. However, building a DCF can be tedious and complex-- especially if you are building one from ...
  • Help Building DCF Model I'm currently trying to build my own DCF model. I've studied the Rosenbaum format as ... I would like to get a feel for another one. Anything will help! dcf DCF Model need help DCF analysis ... laid out in his Investment Banking: Valuation, Leveraged Buyouts, and Mergers & Acquisitions. Does ...
  • AMA: Big Four Valuation Associate- Deciding Whether This Job Is Right For You on Roll-Up Model > $2 billion opportunity- Worked with the client on their LBO to improve accuracy ... and build in sensitivity analysis Breakdown Of My Hours By Project Bucket: Audit Support (15- 20%), ... Presentation Creation (15- 20%), Professional Writing (15- 20%), Financial Modeling (60- 70%) General ...
  • More suggestions...

If we're lucky, maybe I can guilt some users to help you out: @short_round @Henning-Ha @LukeLa

I hope those threads give you a bit more insight.

Nov 6, 2017

I always start from template. no reason to spend all that time and effort on first pass at the CIM.

Nov 6, 2017

NoT banking but MM PE. We have a pretty robust LBO model we use. But no model is perfect and there is always a pretty decent amount of customization that goes into each transaction.

Nov 6, 2017

Most MM's have templates for comps, DCF, LBO, etc. And as ^ noted, you will often have to tweak and customize for specific cases.

Nov 6, 2017

We use templates for most and tweak scenarios. But for some special projects depending on the deal we will build more sophisticated models from ground up.

Nov 6, 2017