What a Good Student Financial Model Looks Like
Professors grade models on structure, transparency, and auditability — not just the final number. Use separate sheets: Inputs (blue, hardcoded), Calc (black formulas), Output (summary + charts). One formula per row, copied across — no hardcoded numbers inside formulas.
Mini-DCF in 6 Steps
- Forecast revenue: prior year × (1+growth). Keep growth on Inputs sheet.
- EBIT = Revenue − COGS − Opex. Link, don't retype.
- FCF = NOPAT + D&A − Capex − ΔNWC. Show each line.
- Discount:
=NPV(WACC, FCF_range)/(1+WACC)^0.5for mid-year convention (explain assumption). - Enterprise → Equity: + Cash − Debt. Divide by shares for target price.
- Sensitivity: Data → What-If → Data Table on WACC × growth. Add conditional formatting.
NPV =NPV(10%, C2:C6)+C1 // C1 is today (t=0), not discounted IRR =IRR(C1:C6, 0.1) Break-even units =Fixed_Costs/(Price - Var_Cost)
Formatting That Earns Marks
- Blue = input, Black = formula, Green = link to another sheet, Red = alert.
- All money: $#,##0; negatives in (brackets). Percentages: 1 decimal.
- Balance check row that must equal zero — shows control.
- One-page Output with title, date, sources, and key chart.
Audit Checklist (5 minutes)
- Trace Precedents on totals — any hardcoded numbers?
- Are units consistent ($000 vs $)?
- Do balance sheet / cash ties balance?
- Does Data Table recalc when Inputs change?
- Can a stranger follow it without you explaining?
Send us your case PDF + rubric and get a clean, commented model with sensitivity tables and charts — ready to submit and defend.
