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  What is Financial Modeling Used For? Financial modeling is a tool to analyze a particular company’s historical performance and relevant market data on comparable companies operating in the same (or adjacent) industry to project its financial performance. By forecasting the operating and financial performance of a company (or project), financial models are practical for various use-cases and guide decision-making, such as in the context of performing a valuation or capital budgeting analysis. The following list contains the top ten most common types of financial models: 3-Statement Model (Income Statement, Cash Flow Statement, Balance Sheet) Discounted Cash Flow Analysis (DCF Model) Comparable Company Analysis (Trading Comps Model) Precedent Transactions Analysis (Transaction Comps Model) Merger Model (M&A Accretion/Dilution) Leveraged Buyout (LBO) Model Initial Public Offering (IPO) Model Sum-of-the-Parts Model (SOTP Valuation) Capital Budgeting Model (Capital Investment...