13 Financial Modeling Examples & Templates for 2025

Financial, while adding assumptions to generate forecasts about upcoming financial outcomes. Financial modeling transforms numerical data into useful business intelligence. Modeling involves creating an organized model that shows how a business performs financially. The process requires the use of past data.

Businesses need financial models now more than ever because they operate in 2025 under three major challenges, which include intensifying market competition and unpredictable economic times, and data-intensive decision-making processes. The right financial model acts as a transformative tool for startup founders who need funding and corporate finance managers who create budgets, and investors who evaluate investment possibilities.

The following article presents 13 financial modeling examples together with templates that suit the needs of 2025. The following sections detail model purposes and their significance, typical implementation scenarios, and essential template components for download.

1. Three-Statement Financial Model

The three-statement model functions as the fundamental basis for all financial analysis work. The three financial statements of the income statement and balance sheet, and cash flow statement form a unified analytical system through the three-statement model. The model demonstrates how business changes in one area, such as new income statement expenses, create effects that spread to both balance sheet assets and cash levels and cash flow statement results.

The recording of revenue by a company leads to its appearance on the income statement. The revenue generated from sales operations leads to increased net income, which then gets recorded as retained earnings on the balance sheet. The cash generated from this revenue transaction appears on the cash flow statement. A properly constructed three-statement model maintains strong and uniform relationships between all financial statement elements. The model provides a necessary base for executing all financial operations, including forecasting and performance evaluation, and investor relations. The model provides the essential structure for building advanced financial models, including discounted cash flow (DCF) and leveraged buyout (LBO) analyses.

2. Discounted Cash Flow (DCF) Model

The DCF model functions as a strong valuation instrument that determines a business’s intrinsic worth through future cash flow calculations. The model determines business value by adding up projected future cash flows that have been adjusted for time value through discounting. The method earns widespread respect because it evaluates companies through their actual cash generation power instead of market emotions.

Analysts use the DCF method to predict free cash flow for a period ranging from 5 to 10 years. The Weighted Average Cost of Capital (WACC) serves as the discount rate to calculate present value for future cash flows, which represent the average return investors expect from their security investments. The model determines a terminal value to represent the future worth of the company after the forecasted period ends. The intrinsic value of a company emerges from adding the present value of projected cash flows to the calculated terminal value. The model serves as a vital tool for investment choices, especially when used in private equity and venture capital operations.

3. Comparable Company Analysis (Comps) Model

The DCF method calculates intrinsic value, but the Comps model determines business worth through comparison with publicly available companies in similar industries. The method bases its valuation on the principle that businesses within identical industries should maintain equivalent market valuation ratios.

The analysis process involves collecting peer company data to determine EV/EBITDA and EV/Sales and Price-to-Earnings (P/E) multiples. The target company’s financial data receives a valuation range determination through the application of peer company multiple averages or medians. The Comps method remains popular because it enables fast preparation and shows what the market currently values. The method serves two main purposes: it helps determine IPO prices and provides companies with competitor benchmarking data.

4. Precedent Transactions Model

The precedent transactions model, known as transaction comps, functions similarly to Comps because it employs a comparative methodology. A precedent transactions model bases its analysis on M&A deal multiples from past transactions involving businesses with comparable characteristics.

The precedent transactions model serves M&A advisory and fairness opinions well because it shows what actual buyers have paid for companies in previous deals while including premium amounts. Analysts use past deal data to establish valuation ranges and understand the standard premium levels that buyers pay during transactions. The model provides more concrete market-based deal negotiation standards than public market multiples do on their own.

5. Leveraged Buyout (LBO) Model

Private equity acquisition evaluation requires the use of complex financial models known as LBO models. The main characteristic of LBOs involves using debt as the primary funding source for acquisitions. The models are demonstrates how increased leverage enables the acquiring firm to achieve maximum equity returns through exit sales during a 5 to 7 year period.

The model presents a comprehensive debt repayment timeline that demonstrates how the company will use its cash flow to reduce its outstanding debt throughout the investment period. The model determines two essential deal evaluation metrics, which include Internal Rate of Return (IRR) and Money-on-Money (MoM) multiple. Private equity firms depend on LBO models to determine if acquired companies will produce sufficient cash flow for debt repayment and profitable returns.

6. Merger Model (M&A)

The financial effects of company unification become the focus of analysis through merger models. The main objective of this model is to establish whether the acquisition will boost or reduce the acquiring company’s earnings per share (EPS). The acquisition of a company through a merger results in higher EPS when it is accretive but leads to lower EPS when it is dilutive.

The model unites financial statements from both companies through pro forma analysis, which includes acquisition costs and financing method, and expected synergies from the merged operation. The financial evaluation of potential deals depends on M&A models, which help organizations present strategic plans to their boards and measure both benefits and risks of proposed acquisitions.

7. Initial Public Offering (IPO) Model

The IPO model functions as a tool for companies and their banking partners to establish both market value and stock pricing during their initial public offering process. The model takes into account three main elements, which include the target capital amount and share quantity, and the impact on current shareholder ownership stakes.

The models starts with a reverse calculation to determine valuation through analysis of comparable market data and investor interest levels. The model enables management teams and underwriters to establish a price that maximizes capital acquisition while achieving a successful market entry. The model incorporates market sentiment analysis and ESG (Environmental, Social, and Governance) factors, which have become essential for public investors in its calculations.

8. SaaS Financial Model

The model operates for businesses that use subscription-based models, including software-as-a-service (SaaS) companies. The SaaS model uses distinct performance indicators that differ from standard business measurement systems.

The main performance indicators for this model consist of Monthly Recurring Revenue (MRR) and Annual Recurring Revenue (ARR), together with customer-focused metrics including Customer Acquisition Cost (CAC) and Lifetime Value (LTV). The model enables businesses to predict expansion through customer acquisition and retention rates because venture capitalists need to see recurring revenue streams and positive customer financials before funding startups.

9. Budget Model

A budget model functions as a short-term financial plan that businesses use for annual operations. The model functions as a core management tool for internal operations to manage expenses and distribute resources while monitoring actual performance against established targets. The modeling shows detailed financial information about revenues and expenses through regular time intervals of months or quarters. The model includes variance analysis to detect spending discrepancies and performance shortfalls through actual versus budgeted comparison.

10. Forecasting Model

The forecasting model generates predictions about future business financial results that extend past the current year. The forecasting model operates as a dynamic projection system, which differs from budgeting because it requires periodic updates. The model serves essential functions for organizations to develop strategic plans and handle risks, and acquire future capital. The model enables management to create different scenarios through scenario analysis, which includes base case and best case, and worst case projections based on different assumptions.

11. Real Estate Financial Model

The model assesses both the financial viability and profitability of real estate investments that include rental properties and development projects, and REITs. Model predicts rental revenue while it handles operating costs and shows a complete breakdown of mortgage payments and financing terms. The model generates two essential results, which are the Internal Rate of Return (IRR) and the Net Present Value (NPV), to help investors check if their investment goals will be reached.

12. Option Pricing Model

The Black-Scholes Model represents the option pricing model that calculates theoretical fair values for financial options. The model serves two essential purposes because it helps traders value derivatives and determines the worth of employee stock options at startup companies. The model requires four essential variables to generate its results, which include volatility and interest rates and strike price, and time until expiration. The models help analysts evaluate option values to identify overvaluation or undervaluation, which supports their trading and risk management activities.

13. Consolidation Model

A consolidation model helps large corporations with multiple subsidiaries to merge their financial statements into one unified reporting system for group-level financial reporting. The model serves multinational companies by helping them handle currency differences and removing intercompany deals to prevent revenue and expense duplication. The current consolidation models operate automatically through integration with enterprise resource planning (ERP) systems to deliver precise and efficient results.

Conclusion

Financial models serve as essential business tools during 2025 operations. The models enable businesses to predict their performance and evaluate risks, and create better stakeholder relationships and strategic choices.

The 13 financial model examples presented here span from the fundamental three-statement model to specialized templates for SaaS and real estate businesses. Organizations that select appropriate templates will achieve faster work processes and lower mistake rates while making decisions through dependable data analysis.

Financial models serve as critical tools that determine business success when organizations need to prepare for IPOs or analyze mergers, or create yearly budgets.