8/11/09

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,

Comments (64)

8/11/09

Investment Banking Interview Course

8/11/09
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.

8/11/09

good call on the CFA reference, I was in a hurry writing the original post. Meant to mean IN level II of CFA program...

If you knew me you wouldnt question my integrity I promise.

8/11/09

Enrique Arzac
http://www.amazon.com/Valuation-Mergers-Buyouts-Re...

Damodaran
http://www.amazon.com/Damodaran-Valuation-Security...

I have the McKinsey & Co. book on Valuation- find it a little basic.

8/11/09
MichaelHutchens:

Enrique Arzac
http://www.amazon.com/Valuation-Mergers-Buyouts-Re...

Damodaran
http://www.amazon.com/Damodaran-Valuation-Security...

I have the McKinsey & Co. book on Valuation- find it a little basic.

Thanks all, much appreciated!

8/11/09
8/12/09

is

Enrique Arzac
http://www.amazon.com/Valuation-Mergers-Buyouts-Re......

and

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

any good?

8/12/09
rmivalue:

is

Enrique Arzac
http://www.amazon.com/Valuation-Mergers-Buyouts-Re......

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.

8/13/09
h.e.pennypacker:
rmivalue:

is

Enrique Arzac
http://www.amazon.com/Valuation-Mergers-Buyouts-Re......

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.

1/20/11

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.

1/21/11

the rosenbaum book is very good...

1/21/11

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

1/21/11

Thank you. Would it make sense to read the corpfin book before the valuation book? Or are they independent?

Any other opinions would be greatly appreciated.

1/21/11

http://macabacus.com/

incredible resource and 100% free

1/21/11

I agree that Damodaran is the way to go. Read Valuation before CorpFin, to get solid understanding of basics and theory before drilling down into more specific issues.

1/21/11

Heh. Then glad I asked. I would've thought CorpFin should come first. Thanks.

1/21/11

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

1/21/11

But I should start with one of the academic books, right?

1/21/11

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.

1/21/11

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.

1/21/11

You guys think I can jump straight into Damodaran's lectures if I've already been through BIWS?

1/21/11

What am I trying to learn? Well I learned financial accounting as a background for finance so whatever would come next really...

1/21/11

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 :)

1/21/11

hell yeah stern pride. happy trolling day lol

1/21/11

Damodaran is a God

1/21/11

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.

1/21/11
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.

1/21/11

Damodaran is a solid book. WOnt regret it.

1/21/11

You can watch Damodaran's entire class lectures for free here: http://www.academicearth.org/courses/valuation

Along with hundreds of other free lectures from core schools and a plethora of various material.

Silver bananas welcomed.

1/21/11

Sorry to bump this again but I'm deciding between the Brealy and Myers book and the Damodaran lectures for corporate finance. I'm worried about only using the lectures because the course uses his book Applied corporate finance rather than a book that focuses on more of the basics. Does anyone have an opinion on this?

1/21/11

principles (?or fundamentals?) of corp fin brealy myers is considered the corp finance bible ... and i may be quoting the McKinsey valuation book...

i haven't read applied corporate finance.

just get the schaum's outline (haven't read it neither) and solve 300 problems ... then you can keep reading books for fun ...

1/21/11

Download and read this whole book and you will be set for any IB interview.
http://www(dot)mediafire(dot)com/?kok3myivtdj#1

1/21/11

Isn't that a song - "Damodaran" by Night Ranger

DAMODARAN
What's your price for flight
In finding mister right
You'll be alright tonight

1/21/11

hi guys

i majored in finance but want to review a textbook before i start work (BB IBD analyst) this summer. i have both damodaran's applied corporate finance and brealey myers allen. which one should i skim/read? i've heard applied corporate finance is used by Morgan Stanley's analysts-- so i'm leaning towards this one!

thanks

1/21/11

corporate finance: A Valuation Approach by Simon Benninga ,Oded Sarig , please help me to download this book

1/21/11

What are the most useful books or guides to learn accounting the best way for ib interviews?

I have Financial Accounting by Libby, Libby, Short - does that suffice? Comprehensive enough?

Investment Banking Interview Course

1/21/11

This is supposed to be a great one. Apparently it comes with a helpful CD as well:
http://www.amazon.com/Financial-Modeling-Simon-Ben...

1/21/11
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-Ben...

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

1/21/11

I would say Best Practices for Equity Research Analysts is more for people that already know how to model and conduct research. Not sure about the other books you mentioned, but I think the BIWS modeling course is very helpful for ER as well.

1/21/11

I think the BIWS modeling course is very helpful for ER as well.
http://www.ldsmusicnow.com

1/21/11

Anyone got PDF's of the books above? Please PM me. :)

1/21/11

Does anyone have any book recommendations for analyzing financial institutions specifically? Thanks.

1/21/11

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: clinical psychologist (in training)
Previously: investor relations (top consulting firm), M&A consulting (Big 4), M&A banking (MM)

1/21/11

https://sphotos-b.xx.fbcdn.net/hphotos-snc6/s720x7...

^That's probably the only book you need for interviews. I don't think anyone expects a college kid to know that much.

p.s. That picture is from the WSO conference, if you're wondering.

1/21/11

http://macabacus.com/

prob the best resource out there

1/21/11

Rosenbaum and Pearl includes completed and blank templates for various valuation methodologies (these are online and the password is in the book), so you can learn about the methodologies and then build up your own model using financials and the templates (though it is tough without access to Bloomberg, CapIQ, other financial data service subscriptions).

1/21/11
1/21/11
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: clinical psychologist (in training)
Previously: investor relations (top consulting firm), M&A consulting (Big 4), M&A banking (MM)

1/21/11

Not super in depth...but as much as you'll really need to know as an analyst! Also very well written. I find Rosenbaum and Pearl realllllly dry and boring.

1/21/11
blackberry89:

Not super in depth...but as much as you'll really need to know as an analyst! Also very well written. I find Rosenbaum and Pearl realllllly dry and boring.

Interesting. I'll see if I can hunt down my classmate and commandeer her copy.

Currently: clinical psychologist (in training)
Previously: investor relations (top consulting firm), M&A consulting (Big 4), M&A banking (MM)

1/21/11

i would combine macabacus and go through it with Rosenbaum

1/21/11

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.

1/21/11

Rosenbaum, BIWS, WSP...

"They are all former investment bankers that were laid off in the economic collapse that Nancy Pelosi caused. They have no marketable skills, but by God they work hard."

1/21/11

Read the guides that are online available. The next step is to read guides that elaborate on technical issues.

1/21/11

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

1/21/11

Currently: clinical psychologist (in training)
Previously: investor relations (top consulting firm), M&A consulting (Big 4), M&A banking (MM)

1/21/11
1/21/11

Obsessed is a word the lazy use to describe those who are dedicated.

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