Financial Modelling

What we do

Our experienced financial modelling consultants have developed models for public and private sector clients across Australia using discounted cash flow and bespoke financial models.

• Discounted Cash Flow models – Forming the basis for much of the financial modelling undertaken by our team, DCF models estimate the value of a project or investment based on its expected future cash flows. By discounting these cash flows back to their present value using a discount rate, typically the weighted average cost of capital (WACC), DCF models provide a detailed and dynamic approach to assessing the intrinsic value of a project or asset, thereby providing decision makers with a consistent, widely accepted methodology.
• Bespoke financial models – We have prepared bespoke financial models developed using rigorous financial principles to assist clients with understanding specific questions, such as the financial impact of different pricing strategies, asset management strategies or evaluating the financial impact of policy changes on clients and their stakeholders.  
• Model reviews – In addition to building fit for purpose models which support our analyses, we are often engaged to review existing models to provide technical assurance and best practice modelling advice. Model reviews can provide a structured approach to validating and maintaining the accuracy, reliability, and compliance of models used in various applications. 

Financial models based on the FAST Standard

All our financial models are developed using the FAST (Flexible, Appropriate, Structured, Transparent) Standard. The FAST Standard emphasises models that are:

• Flexible: Easily adaptable to changes in assumptions and scenarios without requiring extensive rework.
• Appropriate: Suitable for the purpose and scope of analysis, ensuring relevance and reliability.
• Structured: Organised in a logical and coherent manner, typically with clear separation between inputs, calculations, and outputs.
• Transparent: Easy to understand and audit, with all assumptions, calculations, and data sources clearly documented.

Our approach to model development provides assurance to our clients through its use of consistent naming conventions for variables, a clear and organised structure, and use of formulas that are simple and easy to follow, ensuring our financial models meet the needs of end users by providing clear, comprehensive analysis.