FAST method in Financial Modeling

The FAST (Flexible, Accurate, Structured, and Transparent) method is a financial modeling framework developed by John S. Tjia. It is a methodology that emphasizes the importance of creating flexible, accurate, structured, and transparent financial models.

Here's a brief explanation of each component of the FAST method:

1. Flexible: A flexible financial model should be easy to adapt and modify. It should accommodate changes in assumptions, inputs, and scenarios without requiring significant effort or time.
2. Accurate: An accurate financial model should produce reliable and trustworthy results. It should be based on sound financial principles and incorporate the most up-to-date information available.
3. Structured: A structured financial model should be organized in a clear and logical manner. It should follow a consistent and standardized approach, with a clear definition of inputs, calculations, and outputs.
4. Transparent: A transparent financial model should be easy to understand and explain. It should be clear how the model works, what the inputs and assumptions are, and how the outputs are calculated.

The FAST method provides a structured approach to financial modeling that is widely used in the finance industry. By following the principles of the FAST method, financial modelers can create models that are robust, reliable, and easy to use.