BEST Valuation/Modeling Books

Hey all,

Im trying to brush up on my financial valuation/modeling skills for a new role valuations for large oil/gas company. Can you recommend some good reading/reference learning material???

PS - Ive already done Wall Street Prep and am level II CFA...

Thanks,

 
cfainthemaking:
Hey all,

Im trying to brush up on my financial valuation/modeling skills for a new role valuations for large oil/gas company. Can you recommend some good reading/reference learning material???

PS - Ive already done wall street prep and am level II CFA...

Thanks,

You should re-read your "ethics" book. You're violating the standards in the way that you are referring to your candidacy in the program.

 
rmivalue:
is

Enrique Arzac

http://www.amazon.com/Valuation-Mergers-Buyouts-Restructuring-Finance/dp...

and

Investment Banking: Valuation, Leveraged Buyouts, and Mergers and Acquisitions (Wiley Finance) (Hardcover) by Joshua Rosenbaum

any good?

I have been using the Rosenbaum book throughout my SA stint. It is a great reference book/step-by-step instructional. Very practical.

 
h.e.pennypacker:
rmivalue:
is

Enrique Arzac

http://www.amazon.com/Valuation-Mergers-Buyouts-Restructuring-Finance/dp...

and

Investment Banking: Valuation, Leveraged Buyouts, and Mergers and Acquisitions (Wiley Finance) (Hardcover) by Joshua Rosenbaum

any good?

I have been using the Rosenbaum book throughout my SA stint. It is a great reference book/step-by-step instructional. Very practical.

2nd that, have it in my desk now. great reference.

 

hi guys. Just looking for a 2010 opinion on this. I have the Rosenbaum book on the way as well as some others out of interest. Was looking for a 2nd book on IB, M&A, etc.

I've read all the main amazon reviews for Damo, Arzac. Does anyone have any opinion on these two if I were to choose one? It looks like I might end up with Arzac bc Damo is supposed to be more 'academic' and 'theoretical' instead of applied. And it's application I'm really looking for atm.

Looking for more 'insiders' opinions on these two books squared off against each other. Also if there are any underdog books that WSO folks like in particular and why.

Thanks in advance.

ps please post the relevant thread link if its already been asked.

 
Best Response

Damodaran is a solid choice. I've used his valuation books ("Investment Valuation" and "Damodaran on Valuation") a lot and they are quite comprehensive... way beyond what you would get from a basic CorpFin text (Brealey & Myers, etc.). Another great text is Pratt, Reilly and Schweihs. Slightly older, but really comprehensive and has chapters on basically every valuation hurdle you could possibly encounter in the workplace. That one may be a bit pricey (although used on Amazon for $16- damn, I might have to buy it now).

http://www.Amazon.com/Valuing-Business-4th-Shannon-Pratt/dp/product-description/0071356150

 

For formulas and how-to's Investment Banking (Pearl and Rosenbaum) For discussion Valuation (McKinsey)

I didn't rly like Investment Valuation by Damodaran, but if you want to become an expert you have to read many books ... On the academic side Investments (Bodie, Kane and Marcus) Principles of corporate finance (Brealy, Myers et al.)

And some papers like Luehenberg on APV and Ruback on Capital Cash Flow

 

I've always thought that getting an academic base is extremely important, and makes learning more practical methods easier. That being said, I agree with Kraken that Pearl & Rosenbaum's Investment Banking is a great resource. Investments (B, K & M) is also pretty good but not at the same level as the other two books. I also recommend options, futures & derivatives by Hull if you have any interest in that area.

 

fuck aswath damodaran and his stupid textbooks and his stupid tweed jacket with leather patches

naaa just kidding..its all good, what are you trying to learn? vault guide to finance is an introductory lesson to stocks, bonds, valuation, etc. then move up from there

------------ I'm making it up as I go along.
 

Investment Valuation is a very solid book. I like the way it's split (basically valuation methodologies are split by asset class / deal type). There are lots of examples and very good academic work. It was basically my favourite working book in business school. It still sits behind my desk, even though I've only referred to it once since I started working :)

 

I think it depends on your needs. If you start out with Damodaran, you will get to know only one niche of the world of finance. If you have plenty of time, I would recommend Brealey, Myers Allen: Principles of corporate finance. We read that in university, it's incredibly well written, at times rather amusing, and it gives you the big picture. You might want to do some exercises, that's the way to learn the application of the theories. After finishing BMA you can take a look at either Hull (if you are interested in derivatives / trading) or Damodaran (IBD). But if you just read Damodaran you won't even know what the Black-Scholes Model is and that might cause you to get dinged in an interview.

 
Il Cavaliere:
I think it depends on your needs. If you start out with Damodaran, you will get to know only one niche of the world of finance. If you have plenty of time, I would recommend Brealey, Myers Allen: Principles of corporate finance. We read that in university, it's incredibly well written, at times rather amusing, and it gives you the big picture. You might want to do some exercises, that's the way to learn the application of the theories. After finishing BMA you can take a look at either Hull (if you are interested in derivatives / trading) or Damodaran (IBD). But if you just read Damodaran you won't even know what the Black-Scholes Model is and that might cause you to get dinged in an interview.

Thank you.

 

[quote=Hayek]This is supposed to be a great one. Apparently it comes with a helpful CD as well:

http://www.amazon.com/Financial-Modeling-Simon-Benninga/dp/0262026287/r…]

This looks to be the one, yeah. Seems a little dry, though.

"When I was young I thought that money was the most important thing in life; now that I am old I know that it is." - Oscar Wilde "Seriously, psychology is for those with two x chromosomes." - RagnarDanneskjold
 

What are you interviewing for? If it's a matter of an analyst position, they won't expect you to do anything hefty beyond a simple comps/DCF valuation.

For anything more advanced, pick up a copy of Simon Benninga's Financial Modeling. Alternatively, get some finished models and just practice rebuilding them over and over again.

Currently: future neurologist, current psychotherapist Previously: investor relations (top consulting firm), M&A consulting (Big 4), M&A banking (MM)
 
blackberry89:
http://www.scoopbooks.com/ this
Oh wow, that book was all the rage in like, 2008. I remember one of my peers having a copy, but I never looked at it -- people were recommending it as the bible of investment banking, the Rosenbaum&Pearl of IB before Rosenbaum&Pearl existed. Is it really as good as they say it is? Seems like it covers a lot of topics; how in-depth does it go with each?
Currently: future neurologist, current psychotherapist Previously: investor relations (top consulting firm), M&A consulting (Big 4), M&A banking (MM)
 

Try Expectation's Investing by Micheal Mauboussin. I've only read another book of his, but it was pretty good and the Amazon reviews say this one deals with ways to incorporate market expectations into the investment process. The other big one that comes to mind is the Alchemy of Finance by Soros, which is a completely different beast. If you want to deal with perception and value though, you definitely want to try that.

 

Iure minima quasi ipsa aut. Ut dolorum laboriosam et nemo. Minima necessitatibus et veritatis commodi praesentium suscipit error. Iusto reiciendis praesentium praesentium perferendis. Quis voluptatem quia quam quo quis est et. Voluptas eos molestiae quo.

Qui doloremque et doloremque nam facere et. Amet culpa molestias doloremque commodi qui quis. Distinctio error doloremque quod itaque dolorem qui praesentium nulla.

Hic id id reiciendis accusantium. Error eos architecto minus. Aut labore eveniet illum dolores ut quia. Et hic velit temporibus. Et quisquam numquam omnis. Ipsa dolore dolorum voluptas dolor eaque accusamus aperiam quod.

I'm not concerned with the very poor -Mitt Romney
 

Quasi quaerat reiciendis veritatis repellendus quis. Tempore porro itaque accusantium quod. Ipsum eius voluptas maxime minima quia deleniti id. Quo eaque cupiditate ad aut. Distinctio sit molestiae occaecati error. Ipsam explicabo fugiat nesciunt molestiae nam.

Deserunt reiciendis qui at cumque aut quidem rerum. Et architecto quibusdam voluptatem accusantium veritatis. Corrupti reprehenderit facilis quidem at consequuntur. Fugiat non omnis fugiat illum.

Odio quos sed nobis consequatur tempora. Voluptatem impedit et aut totam. Ea possimus dolore et voluptatem facilis.

Currently: future neurologist, current psychotherapist Previously: investor relations (top consulting firm), M&A consulting (Big 4), M&A banking (MM)
 

Odit et et fuga. Et illo autem aut qui deleniti dolorum et. Minima et rerum et eius eos eum molestiae. Qui tempore veritatis voluptas assumenda reiciendis culpa quas. Natus quo soluta id repellat. Sunt ab at at numquam et.

Quasi earum iusto tempora commodi. Ab sit ea delectus asperiores autem consectetur vel. Doloribus mollitia error at sunt maiores.

Quo quia et saepe deleniti dolorem nam facilis voluptas. Est sit odio perspiciatis dolorem est ratione qui dicta. Id eum nihil voluptatem totam repellat. Eveniet nisi inventore doloribus velit quisquam doloremque ipsam.

Fuga cumque veritatis soluta et dolores quae explicabo. Ipsum eveniet neque minima quia velit. Quo unde aliquid saepe in optio ut.

Career Advancement Opportunities

March 2024 Investment Banking

  • Jefferies & Company 02 99.4%
  • Goldman Sachs 19 98.8%
  • Harris Williams & Co. (++) 98.3%
  • Lazard Freres 02 97.7%
  • JPMorgan Chase 03 97.1%

Overall Employee Satisfaction

March 2024 Investment Banking

  • Harris Williams & Co. 18 99.4%
  • JPMorgan Chase 10 98.8%
  • Lazard Freres 05 98.3%
  • Morgan Stanley 07 97.7%
  • William Blair 03 97.1%

Professional Growth Opportunities

March 2024 Investment Banking

  • Lazard Freres 01 99.4%
  • Jefferies & Company 02 98.8%
  • Goldman Sachs 17 98.3%
  • Moelis & Company 07 97.7%
  • JPMorgan Chase 05 97.1%

Total Avg Compensation

March 2024 Investment Banking

  • Director/MD (5) $648
  • Vice President (19) $385
  • Associates (86) $261
  • 3rd+ Year Analyst (13) $181
  • Intern/Summer Associate (33) $170
  • 2nd Year Analyst (66) $168
  • 1st Year Analyst (202) $159
  • Intern/Summer Analyst (144) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
Secyh62's picture
Secyh62
99.0
3
BankonBanking's picture
BankonBanking
99.0
4
Betsy Massar's picture
Betsy Massar
99.0
5
dosk17's picture
dosk17
98.9
6
CompBanker's picture
CompBanker
98.9
7
kanon's picture
kanon
98.9
8
GameTheory's picture
GameTheory
98.9
9
DrApeman's picture
DrApeman
98.9
10
Jamoldo's picture
Jamoldo
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”