Managing FM when new FY's results get published
Posts: 2
Joined: Sun Dec 02, 2012 11:28 pm

Managing FM when new FY's results get published

Postby » Mon Dec 10, 2012 7:05 pm

Suppose I've prepared a Financial Model of a company valuation based on DCF model; I've pojected five years' (say FY13 to FY17) cash flow and then calculated terminal value. Now suppose current financial year's (FY13) results get published by the company, how will I incorporate/handle this situation in my FM? I don't want to change the structure. That means now I want to project for the next five years (FY14 to FY18). Will I have to prepare another model or can I work on the same model? If yes, how?


Finance Junkie
Posts: 61
Joined: Fri Aug 03, 2012 11:24 am

<span class=

Postby pankaj » Wed Jan 09, 2013 10:52 am

See, using DFC you find value as of today (that is present value). so, if you have forecasted 2013 numbers in your model to get the final valuation and now when actual figures are can see how good your forecast was. To check the model you need to just put the actual numbers in the 2013 column and the model will show you the end result (provided you have created an integrated model). In case, variations are wide change your assumptions and if you want to extent the model just copy and drag to a new column.

Hope this helps!

Return to “Open Source Financial Modeling”



Global Association of Risk Professionals, Inc. (GARP®) does not endorse, promote, review or warrant the accuracy of the products or services offered by EduPristine for FRM® related information, nor does it endorse any pass rates claimed by the provider. Further, GARP® is not responsible for any fees or costs paid by the user to EduPristine nor is GARP® responsible for any fees or costs of any person or entity providing any services to EduPristine Study Program. FRM®, GARP® and Global Association of Risk Professionals®, are trademarks owned by the Global Association of Risk Professionals, Inc

CFA Institute does not endorse, promote, or warrant the accuracy or quality of the products or services offered by EduPristine. CFA Institute, CFA®, Claritas® and Chartered Financial Analyst® are trademarks owned by CFA Institute.

Utmost care has been taken to ensure that there is no copyright violation or infringement in any of our content. Still, in case you feel that there is any copyright violation of any kind please send a mail to and we will rectify it.