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Building a successful career in the finance domain requires relevant skills for understanding, organizing, analyzing, and extracting insights, from a company’s financial data. There has been a significant increase in the demand for financial modeling and valuation skills, as managing data and making data-based decisions has become crucial for new-age organizations.
Financial modeling specialists summarise an organization’s expenditure and income in a spreadsheet, to understand how future decisions or events would impact the company financially. Some commonly used financial models include leveraged buyout (LBO) model, discounted cash flow model, sum-of-the-parts model, and merger & acquisition (M&A) model, required for analyzing and taking finance-related decisions in different scenarios. The financial models or modeling tools are also used to estimate the company’s valuation and compare it with competitors in the industry.
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Here are a few lucrative data-driven job roles that would convince a finance enthusiast to build her career in the field of financial modeling and valuation —
- Investment banker – Investment bankers provide financial support to different clients across industries and majorly focus on mergers and acquisitions, capital raising, and advisory mandates. As an investment banker, you will create financial models, implement short and long-term financial plans, seek new business opportunities, collectively work with professionals like accountants and lawyers, negotiate financial deals, and research across market conditions, for your clients. If you aim to work specifically within investment banks, your options include International investment banks, independent investment banks, and investment banking departments of commercial banks. Major clients of investment bankers include private corporations, governments, large public companies, and private equity firms.
- Real estate finance analyst – Real estate finance analysts research and analyze the market and take all strategic decisions related to property investments. The design of detailed financial models to determine the profitability of a project. As a real estate financial analyst, your major responsibilities will involve creating cash flow analysis, calculating internal rate of return (IRR), making projections and recommendations regarding the best use of resources, predicting the future potential of a property, and choosing high-return investments properties for your clients or organization. Other than financial modeling, in this field, you would also require knowledge of legal compliance matters, risk management, property valuation, builder-buyer needs, and an in-depth understanding of commercial, residential, and other forms of properties.
- Equity research analyst – Equity research analysts conduct investment researches, provide financial insights related to securities, and build financial models to understand the future of stocks. As an equity research analyst, you would analyze a stock’s statistical data, provide buy/ sell/ hold recommendations, identify future opportunities and risks, write reports, and help your clients make the most appropriate investment decisions. You also study the stock market trends, interact regularly with related team members, participate in industry seminars, disseminate ideas for better returns, and generate timely reports. You can either work with a buyer or seller firm or can work with both. Brokerage houses, non-banking financial corporations, mutual fund companies, and securities firms are a few places where you can work and create, update, and manage financial models.
Required knowledge and skills for financial modeling and valuation
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Knowledge of Excel and accounting and finance is the prerequisite for securing a successful career in financial modeling and valuation. You must know how to use basic tools, financial modeling tools, and formatting and conditions in excel. For building an understanding of investment decision techniques, you must know about the time value of money, future value and compounding, present value, net present value (NPV) and discount rate, internal rate of return (IRR), and payback period. Knowledge of how to apply the decision techniques and analyze financial statements is also essential. Mastery in essential valuation concepts like absolute valuation (DCF Method) and relative valuation would enhance your chances of landing a lucrative position across any industry of your choice.
Courtesy: Internshala Trainings (training.internshala.com) – e-learning platform to learn new-age skills from Internshala
(Disclaimer: The article is sponsored and hence promotes some commercial links.)
Hackers have stolen crypto tokens worth $120 million from Blockchain-based decentralised finance (DeFi) platform BadgerDAO. Several crypto wallets were drained before the platform could stop the cyber attack. In a tweet, Badger said it has received reports of unauthorised withdrawals of user funds. "As Badger engineers investigate this, all smart contracts have been paused to prevent further withdrawals. Our investigation is ongoing and we will release further information as soon as possible," the company said late on Thursday.
According to the blockchain security and data analytics Peckshield, the various tokens stolen in the attack are worth about $120 million, reports The Verge. According to reports, someone inserted a malicious script in the user interface (UI) of their website. Badger has retained data forensics experts Chainalysis to explore the full scale of the incident and authorities in both the US and Canada have been informed. "Badger is cooperating fully with external investigations as well as proceeding with its own," it said. DeFi is a collective term for financial products and services that are open, decentralised and accessible to anyone. DeFi products open up financial services to anyone with an internet connection and they are largely owned and maintained by their users. While the attack didn't reveal specific flaws within Blockchain tech itself, it managed to exploit the older "web 2.0" technology that most users need to use to perform transactions, according to reports. (IANS/ MBI)
(Keywords: crypto wallets, BadgerDAO, decentralised finance, Blockchain, 120 million, crypto tokens, Hackers)
A total of 120 top Bollywood and other celebrities are expected to attend the wedding of film stars Katrina Kaif and Vicky Kaushal which is scheduled on December 9 in Rajasthan, said Rajendra Kishan, the District Collector (DC) of Sawai Madhopur district of the state on Friday. The District Collector told mediapersons: "These 120 guests shall follow all COVID-19 protocols and fully vaccinated guests will get entry in the much-hyped celebrity wedding."
Kishan said that the organisers have been asked to strictly follow all Covid-19 protocols. Also, those who are not vaccinated, will not be allowed without the negative RT-PCR test report, he added. "We have been informed by organisers that a total of 120 guests are invited to the wedding and the events will take place between December 7 to December 10," he added.
Earlier at 10.30 a.m., Kishan called a meeting which was attended by administrative, police and forest department officials, hotel and event managers to ensure adequate arrangements for crowd control, smooth regulation of traffic, and law and order situation amid the VIP movement. The wedding venue Fort Barwara, that has been converted into a heritage hotel, is situated in the panchayat samiti Chauth Ka Barwara. The venue is around 22 km away from Sawai Madhopur and is around 174 km from Jaipur. Sawai Madhopur district is famous for the Ranthambore National Tiger Reserve and as per reports, the guests are likely to be taken for a tiger safari. (IANS/ MBI)
(Keywords: Rajasthan, December 9, Vicky Kaushal, Katrina Kaif, film stars, celebrities, Bollywood, Katrina-Vicky)
The National Centre for Biological Sciences (NCBS), which confirmed the first two cases of the Omicron variant in Bengaluru on Thursday, is continuously monitoring the situation in four cities - Bengaluru, Hyderabad, New Delhi, and Pune. The NCBS is a part of a consortium of national laboratories performing genomic surveillance across four city clusters. The consortium was established four months ago with support from The Rockefeller Foundation's Pandemic Prevention Institute, and is led by the Centre for Cellular and Molecular Biology (CCMB) in Hyderabad.
Dr Rakesh Mishra at the CCMB said on Friday that the consortium is continuously monitoring the situation in all the four cities and has upscaled its efforts to sequence as many samples as possible Apart from the CCMB and the NCBS, the consortium includes CSIR-Institute of Genomics and Integrative Biology - IGIB in New Delhi and the Pune Knowledge Cluster, Indian Institute of Science Education and Research (IISER), Pune, and CSIR-National Chemical Laboratory in Pune.
The first case of the Omicron variant was detected in South Africa and reported to the World Health Organization on November 24. | Unsplash
The consortium is focused on upscaling genomic surveillance as part of national efforts led by the INSACOG - Indian SARS-CoV-2 Genomics Consortium - to respond to the Covid-19 pandemic. The consortium intensified its sequencing efforts after the World Health Organisation announced Omicron as a Variant of Concern. Such an intensified effort enabled the Bengaluru team at the NCBS, a member laboratory of INSACOG, in collaboration with Strand Life Sciences and the Bruhat Bengaluru Mahanagara Palike (BBMP), to detect, rapidly sequence and verify the existence of the omicron variant in samples from two Covid-19 infected individuals.
They hope this will aid in a rapid response to contain the spread of variants of concern. Prof Satyajit Mayor from the NCBS conveyed the information to local and national authorities, and the Indian government released a statement on December 2, all within four days of receiving the samples. Both SARS-CoV-2 genomes have also been uploaded to the global repository for SARS-CoV-2 sequences, GISAID, so that they can be publicly available to the scientific community, the NCBS said. (IANS/ MBI)
(Keywords: Hyderabad, New Delhi, Pune, Bengaluru, The National Centre for Biological Sciences, Situation, NCBS, Omicron)