What is the Output of a Financial Model & Valuation Analysis?

The output of a financial model and valuation analysis can vary depending on the specific purpose of the model and the inputs and assumptions used. In general, however, financial models are used to forecast a company's financial performance, such as its revenue, expenses, and cash flows, under different scenarios or assumptions.

Valuation analysis, on the other hand, is used to determine the value of a company or asset based on its expected future performance and risk. There are several different valuation methodologies that can be used, including discounted cash flow analysis, comparable company analysis, and multiples analysis.

The output of a financial model or valuation analysis might include:

Projected financial statements: Financial models often produce projected financial statements, such as the income statement, balance sheet, and statement of cash flows, based on the inputs and assumptions used.

Key performance indicators (KPIs): Financial models may also calculate key performance indicators (KPIs) such as return on investment (ROI), net present value (NPV), and internal rate of return (IRR) to help analyze the performance of the company or project.

Valuation: Valuation analyses often produce a target price or valuation range for the company or asset being analyzed.

Overall, the output of a financial model or valuation analysis can provide important insights into a company's financial performance and value, which can be used to inform investment decisions or business strategy.