How to build a financial model step by step

Description
In this package of templates, we are going to create a financial model for Google. With the purpose to show how financial models are built from raw information. That is why I choose Google as an example for this.
In the first step, we will prepare the model for BS PL and CF. To do that, we need to download all its relevant forms on SEC website. Then step-by-step, we will get accompanied with how to build the forecasts for every line items in each type of FS.


In the second step, we are going to create a DCF model by using FCFF, FCFE approaches. We will develop our DCF valuation on the model we have developed on the first step.


After we finish the second step, we would try to enhance the forecasts. This way, the learners will be able to focus from easy to difficult. From the basic three-statement model and then building the forecasts. That streamlining will make the process much more efficient.


Understanding that building a financial model is always complicated and costs much effort. I design the template with many separate excel files to lead to the final completed one. By carefully reviewing and learning each file, step by step, I believe you will have a better view and skill on how to create other FM from zero.