There are various types of financial models, including:
Discounted Cash Flow (DCF) Model: Used to estimate the value of an investment based on its expected future cash flows. Three-Statement Model: Integrates the income statement, balance sheet, and cash flow statement. Merger and Acquisition (M&A) Model: Evaluates the financial impact of a merger or acquisition. Leveraged Buyout (LBO) Model: Analyzes the financial structure of a company post-buyout, focusing on debt financing. Budget Model: Used for planning and monitoring an organization’s financial performance over a budget period.