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About the FMVA Program
The FMVA Program (Financial Modeling & Valuation Analyst) is renowned as one of the premier qualifications provided by the Corporate Finance Institute (CFI). It specializes in the creation and assessment of financial models using Excel. Notably, the CFI Institute is an accredited institution for financial analysts and is registered with NASBA (The National Association of State Boards of Accountancy).
CFI offers a diverse array of finance and investment courses, catering to both individuals and businesses worldwide. Their headquarters are located in Canada.
Annually, over 100,000 students hailing from various countries enroll in these courses. Exploring financial modeling and evaluation through this certification imparts extensive knowledge, valuable information, and numerous advantages. This certification is delivered online and is designed for self-study, eliminating the necessity for a formal degree. Upon successful completion, CFI issues a certificate that can enhance your CV.
The FMVA program is open to professional financial analysts, students, accountants, and anyone with an interest in the realm of finance.
Why use Financial Models?
Financial models serve as essential tools for making informed decisions and conducting financial analyses, both within and outside a company. Internally, these models are valuable for decision-making in various areas, including:
1. Capital Increase : Assessing the impact and feasibility of raising additional capital, whether through debt or equity.
2. Acquisition (Assets / Companies) : Evaluating the financial viability and potential outcomes of acquiring new assets or entire companies.
3. Business Development and Expansion : Analyzing the financial aspects of expanding operations, entering new markets, or launching new products or services.
4. Sale or Liquidation of Assets : Determining the financial consequences and strategies associated with selling or liquidating assets within the company.
5. Budgeting and Forecasting for the Coming Years : Developing comprehensive financial forecasts and budgets to guide future financial planning and decision-making.
6. Capital Allocation : Allocating financial resources efficiently across different projects, divisions, or investment opportunities.
7. Business Evaluation : Conducting thorough financial assessments to gauge the overall health and performance of the business.
Financial models are versatile tools that facilitate data-driven decision-making processes within organizations, helping stakeholders navigate a wide range of financial scenarios and choices.
FMVA Program fees
There are two program options to choose from:
Program 1 – $497: This program covers all course materials, files, exams, and ready-made forms provided by the institute. Upon completion, you’ll receive a certificate with an official student number.
Program 2 – $847: In addition to the features of the first program, this package includes a complimentary 3-month subscription to Pitchback, technical support via email, a review of forms created by the student, and additional practical offers.
Payment can be made via Visa or MasterCard, and there is a 7-day refund policy from the date of payment. If you prefer to pay in installments, you can opt for a monthly payment plan of $97 over 6 months, totaling $582 instead of the one-time $497 fee.
How to get FMVA certification?
CFI’s online certification program is designed for convenience. It comprises 24 sub-courses, including 9 core and 3 elective courses. You can create an account on the CFI Institute website to access video lectures (around 5 minutes each), along with PDFs, quizzes, and exercises. The program concludes with a final exam of 20 questions, where you need to score above 80% to pass. This certification typically takes 3 to 5 months to complete.
How to benefit from the certification in your career?
Traditional academic education often lacks the practical experience and hands-on skills that companies seek. As a recent graduate, you might find yourself underqualified for the job market’s demands.
The CFI Institute offers a certification program that bridges this gap, providing a robust foundation in financial modeling and evaluation. This program goes beyond theory, enhancing your understanding of applied accounting, finance, financial modeling, and financing. It equips you with the practical skills required for success in the field, improving your job prospects.
Given the fierce competition in today’s job market, companies value candidates who actively seek skill improvement and pursue professional certifications. While pursuing the FMVA Program (Financial Modeling & Valuation Analyst) certification, you’ll notice a significant development in your analytical abilities, including mastering financial analysis methods like ratios and measurements. You’ll learn to construct company valuation models from scratch, analyze financial statements over the past three years, and forecast financial performance for the next five years. This empowers you to make comparisons with other companies in the same industry and present your findings professionally. Additionally, you’ll gain expertise in organizing and designing graphs and presentations.
The certification serves as a bridge between financial theory and practical application. It covers a wide range of essential topics, including accounting, Excel proficiency, financing, valuation, financial modeling, and other relevant subjects in the field. This comprehensive approach ensures you are well-prepared for the real-world challenges of financial analysis and decision-making.
How to learn Financial modeling and the required skills
The most effective way to learn financial modeling is through practical experience, as it provides hands-on training in constructing professional financial models. To succeed in this endeavor, there are several key skills and techniques to master:
1. Excel Proficiency : Excel is the cornerstone of financial modeling. You must be proficient in using Excel for data analysis, formula creation, and model building.
2. Keyboard Efficiency : Increase your efficiency by becoming adept at using the keyboard rather than relying on the mouse.
3. Clarity in Formulas : Create clear and straightforward formulas, and break down complex calculations into manageable steps for transparency.
4. Formulas and Functions : Master important Excel formulas and functions commonly used in financial modeling.
5. Index and Match : Use the “Index” and “Match” functions as alternatives to the “VLOOKUP” function for improved flexibility.
6. Scenario Building : Utilize the “Choose” function to construct and evaluate various financial scenarios.
To apply these skills effectively, consider the following practical steps:
- Data Utilization : Work with historical financial data from established companies and create forward-looking models. Calculate the Net Present Value (NPV) of each share and compare it with the current share price or target price.
- Formatting : Maintain an organized structure, clearly distinguishing assumptions (e.g., written in blue) from outputs (e.g., written in black). This color-coding system enhances clarity.
- Model Design : Design your model with simplicity in mind, ensuring it is easy for users to navigate. Consider building the entire model on a single sheet, and then consolidate sections for improved flexibility and ease of expansion.
- Data Presentation : Present data in an attractive and understandable format, facilitating user comprehension. Visual appeal and clarity are essential for effective financial models.
