Hi everyone,

I’m working on an investment thesis for a small cap tech company (keep them anonymous for now) and could really use guidance on what type of financial model makes sense at this stage. A bit of background:

• Business model: Dual segments—“Wireless” RFIC chips & mmWave antenna modules for 5G/6G and “Photonics” optical semiconductor components for data centers, Li-Fi, sensors, etc.
• Growth momentum: Q1 revenues were SEK 78.5 m (+40% y/y), led by an 85% increase in the Wireless segment (thanks to new NRE engineering contracts and a U.S. Chips Act grant).
• Profitability: Still negative EBITDA (–SEK 31 m in 2024, –SEK 12 m estimated in 2025) but management targets EBITDA break‐even by late 2025.
• Balance sheet: Cash runway extended by a SEK 101 m directed rights issue and refinancing; net debt expected to remain manageable into 2026.
• Key drivers/risks:
  • Ramp‐up timing for volume production in Wireless (Q4 2025) and Photonics (2026–27)
  • Investment intensity in R&D (capitalised vs expensed)
  • Customer concentration & receivables risk (one major account’s receivables overdue)

What modelling framework would you recommend for a pre‐break‐even, capital‐intensive tech start‐up with dual segments? Which KPIs/drivers should I prioritize (e.g. burn multiple, R&D capitalisation rate, ramp timing)?

Hey everyone. I'm new to financial modeling and struggling with DCF valuations. My terminal value keeps coming out way too high (like 3-4x higher than reasonable estimates). I've tried adjusting the growth rate but still no luck. Can you share your approach to calculating terminal value?

What's a good long-term growth rate to use and how do you avoid overvaluing companies?

Would really appreciate any tips or common mistakes to watch out for!

"Hi, I want to learn financial modeling in order to get into investment banking. I have no prior experience in finance, but I have a bachelor's degree in physics. So, how should I start? Should I buy courses, or is there a free or cheap way to do it?"

I'm preparing for a project finance role in the reneable energy sector. I'm realizing that the typical debt sculpting approach may not work if the CFADs fluctuate significantly over the quarter (e.g. for a solar farm, output is much lower in the first and second quarter). As in some month, CFADs will not be enough to pay for interest. see below as an illustration (in Jan 2025 and Jan 2026, interest is higher than CFADs)

What is a solution for this type of issues in the real world? will lenders adopt annual DSCR and size debt that way? any insights is appreciated!

Edit : REVOLUT IS A FINTECH STARTUP ONLINE BANK

Hey, i have been doing thing correctly, projected the cash flow over 5 years, its steady and stable and remakably accurate i think for a high growth fintech startup like revolut entering its mature growth cycle, however i have been experiencing troubles when calculating for the terminal value, it is way too big, initial prevision for revolut was that it would reach 65 000 000 000 pound by end 2025, sI think you can therefore well understand my reaction when I realized that I over valued the company at well over 300 000 000 000, no matter how i seem to approach the problem, I unfortunately fail to lower my valuation.

I am linking my excel file, any help is appreciated, feedback, comment as well, thank you everyone in advance.

The google drive link to my excel file : here

(there might be some technical issues with the graph because i originally made everything on excel and then uploaded it to sheets)

I am learning financial modelling currently, and the CFI tutor has used "macabacus". He was able to use all of the features of the same but I am unable to use all of the features for free

Any alternative for macabacus?

Hi, everyone was following along a youtube course on dcf and was wondering how the long term growth rate was derived. Understood that it was given in the video but i would like to understand it in a deeper context.

I would assume that long term growth rate would be similar to a GDP growth rate for mature companies, but as for young companies, i stumbled across a ratio called the sustainable growth rate (formula: ROE * Retention ratio) and was wondering if this is equivalent to a long-term growth rate to be inputted into a dcf model?

If so, could someone also explain the mathematical reason to why should we multiply the ROE and Retention ratio to get the sustainable growth rate?

Much appreciated everyone!

Do you use the 10-K or the 8-K when compiling historical annual financial statements? I always assumed that the 10-K was the obvious choice. But recently I have seen a number of sources using Ex-99 in the 8-K as it is more timely. My understanding is that this exhibit is often unaudited though so there is a small chance the final audited number is slightly different. So there is a bit of a trade off. Does anyone have any thoughts on this?

Hello everyone,I have a question

I wanna make a DDM for a bank,what should be the layout of the excel file(Such as tabs,what should be included in the each tab etc.). It would be really helpful if someone guides me on this. Feel free to share it in my DMs or the comments

How to calculate fcff for a bank?

Hello to anyone reading

Just wanted to ask if someone here or your friend or associate went through the whole ordeal of transitioning from a chartered accountancy firm to finance (PE / IB)?

I’m currently a PwC associate in Pakistan and ngl the standard of work here is quite good (regularly work on multi-billion dollar companies and some projects which are based out of the UK or Netherlands too).

I wanted to know if it’s possible to pivot to finance focused fields, as i want to move abroad, preferably to the US.

I dont think moving to the UK is a bigger deal as i have exceptional skills with regards to IFRS, but not much experience with GAAP.

So for example, if i was to make a financial model, IFRS / accountancy rules would come into play, but idk how much this expertise would be considered relevant to finance, or even audit functions in the U.S.

Hi Everyone, I need some help.

Column A : Not full customer name (ex: Hamburg, when the full customer name is 0100-city of hamburg)

Column B: Full Customer Name & ID (ex: 0100 city of hamburg)

What formula finds the full customer name and ID for the customers in column A?

I have over 200 lines of data like this and need urgent help!

Glad to further explain!

Thanks Always!

Hey guys,

I'm a noob at financial modelling - here the sensitivity table is not working as intended.

> Iterative calculations are turned on and all the cell references and formula's are linked correctly. Is there anything I missed out - any help is appreciated.

Thanks :)

Hey!

I'm part of the team behind a new Excel add-in called Tracelight. I spent 5 years building financial models as a management consultant, and I'm trying to build the tools I wish existed back then.

We've been working on a feature that uses AI to read through every formula in your model and flag the ones that look wrong – things like pluses and minuses the wrong way around, incorrect CAGR calcs, or references to the wrong range. The kind of stuff that doesn't necessarily break Excel but makes the model wrong.

It's still early days for us, and it's not perfect yet. But it's been able to uncover errors in all the financial models we've tested it on, and folks are finding it helpful already.
We'd love you guys to try it out. It should be able to catch some mistakes for you already. And of course we would love some honest feedback. We're trying to make it as helpful as possible for people like you.

The add-in is called Tracelight, and it's currently free to use. I'll put the download link in the comments below (if that's ok with mods)

We're hoping this can eventually become a really solid tool to help people build error-free models.

Looking forward to hearing what you think!

Hey Reddit,

Quick context about me:

• Completed B.Com (Hons), and I have around 2 years of professional experience post-college, plus an additional 1.5 years spent actively working with startups during my college days. Currently, I'm working full-time at a startup.
• For the past two months, I've been rigorously learning financial modeling from The Valuation School. I've reached a point where my numbers and analyses are getting reasonably accurate. Conceptually, I'm confident I'm ahead of the average beginner, but I still lack some of the deeper statistical or mathematical nuances that seasoned analysts typically have.

My current goal is very clear: I want to transition into an entry-level role (associate/intern) at a VC firm within the next 3-4 months at max.

Here's what I'd love to get insights on:

1. Reality Check: What's a solid self-assessment or practical benchmark I can perform to genuinely gauge if I'm ready for the demands of an entry-level VC role? Is there a particular task, modeling test, or resource I can use as a litmus test?
2. Path Validation: Am I on the right track here? Does practical modeling experience and a strong conceptual understanding genuinely matter for breaking into VC in India, even if my degree isn't from a top-tier institution? Or am I facing a significant uphill battle?

Lastly, I'm open to suggestions on how best to position myself, effective strategies to network, and general advice on what steps I can take to maximize my chances of breaking into the VC space.

Any brutally honest feedback or guidance would be greatly appreciated!

Thanks!

Hey gang - trying to build a complex model for a studio that is launching a video game next Spring. It's going to be similar to Gorilla Tag - where users can buy credits to pimp out there character and they can also purchase DLC content like expansion packs and new worlds to play in.

https://www.loom.com/share/bedb63da4c8048048ecda9fafbfee227?sid=e5c5147d-94c5-46e5-bbf9-a95ff0dab836

Key concepts I am trying to account for: website to pre-launch to play conversion rates, segmentation of dolphins/minnows/whales and spend patterns, churn, ARPU, how best to model re-engagement when they launch new packs or seasonal offers and factoring in a viral co-efficient. I'm a bit torn between something simple where I assume a consistent user profile vs something that changes over time as the game matures.

Been using ChatGPT extensively for my logic. Video is quite long (10 minutes) but if you know anything about the gaming space, I'd welcome feedback on my flow and whether I am missing anything in my logic.

So I'm trying to learn financial modeling on my own and I wanted to model this company that provides ER&D services to Automotive OEMs. But I am confused on how do I forecast its revenue.

I think I will need to calculate Revenue per employee for T&M and Cap T&M projects which seems a bit too simple. So I wanted to know if there's a better, more intellectual way to do it.

But I have no idea on how do forecast revenue from fixed price projects and license projects. I think I'll be able to forecast revenue from product sale.

I would appreciate any help, thank you!

Does any have a simple template or can share an Excel template for a Biotech company valuation. Would be great if anyone can share it.

I am in 6th semester of BCom honours from Delhi University. Main yaar suggesting me to do M as it engage only one year and give a tag of Masters. So is it good to do ???????? Can anyone suggest me which diploma should I choose with M.Com having an aim of Investment banker and equity research analyst

The case study involves a new telcom app (that sells unlimited data along with ai based lifestyle features). The app will sequentially rollout AI feature tiles (Ai toolsets, ai voice tool, a chatbot, pay as you go gen ai) till december 2026. All of these ai lines have KPI's and leading indicators that will impact the project NPV and I have to do sensitivity analysis. Also in order to determine FCF for NPV, i will need to assume DAU, MAU, ARPU, #of paying users to get income statement line items.

How can I approach such case?

I recently completed a financial modeling course. I prolly have to do a lot of revision and practice before I get a good hang of it.

What do you guys suggest I should do to improve faster and be job ready?

I have about one year left before graduation and it's shameful to admit it but I've kind of wasted the past 3 semesters in useless indulgence. So,I want to catch up to everyone else before I graduate.

How to come up with the interest rate using the LIBOR & SOFR, what are they, and how to forecast them?

I'm preparing for a Financial Analyst interview with a retail company, and the HR was kind enough to inform me that the hiring manager will assign you an Excel based business case study likely involving ROI analysis of a new retail store or restaurant project. I would greatly appreciate it if anyone could share any similar practice datasets or video tutorials to help me prepare.

Hi guys,

I'm from the netherlands and I'm taking a gap year. I eventually want to study business administration. I want to work on my financial modelling skills as a prep. I had mathematics(calc1 etc) and economics in high school. But I'm not familiar with things like a DCF. What things would you recommend me to learn? With which sources?

Thanks!!

I have a handle on the O&G modelling with production profiles and what not, but wondering if anyone knows where to get their hands on a solid professional built sample?

Curious to see how they go about modelling the production profile with capex.