What Are the Key Steps in Financial Modeling and Valuation? Financial Modeling and Valuation involve building a structured model to forecast financial performance and determine value. https://thealgebragroup.com/financial-modeling-and-valuation/Begin with a clear objective, gather historical data, and make realistic assumptions about revenue growth, margins, and expenses. Develop key drivers and scenarios to assess potential outcomes. Use multiple valuation methods like Discounted Cash Flow (DCF) and comparable company analysis to validate results. Test sensitivities for discount rates and terminal values to understand risk impacts. Maintain transparency in assumptions and documentation. Finally, interpret findings effectively to support informed decision-making and communicate insights clearly to stakeholders for better financial planning.