Learning Financial Modelling
Can anyone suggest any good online resources for learning financial modeling?
All the resources I can find are leading to expensive classroom based training programs!
Can anyone suggest any good online resources for learning financial modeling?
All the resources I can find are leading to expensive classroom based training programs!
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Career Resources
read through damodarans website. he is an NYU Stern professor who is supposed to be the guru of valuation and goes around all the big investment banks and gives lectures to new hires (someone correct me if im wrong)
http://pages.stern.nyu.edu/~adamodar/
FYI, its good to learn financial modeling as interview prep because it reinforces your knowledge of how accounting statements work and should help you tackle some questions like "walk me through a DCF" or "what are the different ways you can value a company", but no one will be impressed if you mentione that youve learned valuation on your own because every company has a different model so youre going to have to relearn a lot of things anyway.
you probably already know that but didnt want you to make this common mistake.
best of luck
His page is great, but is there something similar to this about financial statements and their interaction?
hey dude financial modeling skills comes in two parts:
You can start doing both at the same time. Practice makes perfect. Try to use as many shortcuts as possible. There are plenty on this site.
The two major model types I think you should tackle using the resources on the Damodaran site: DCF and LBO. Just go into them on Excel, press ALT T-U-D and ALT T-U-T to check out how all the cells tie into one another. And then just get familiar with the formats, etc.
Once you actually start at a BB you will need to learn the firm formats, which vary greatly, but being good at Excel and knowing basic concepts will be good for when you start and for interviews.
i'm sure if you head down to the meat packing district you can find "the maven" pouring shots down underage girls
Just a heads up to anyone hitting this old discussion: I put together a side by side comparison of the top financial modeling training courses here: http://www.wallstreetoasis.com/financial-modeling-training
Finanial Modelling Training (Originally Posted: 01/11/2011)
Hi,
Do you know which are the main (and best) providers of financial modelling training for I-banker? I am especially looking for something focused on Project Finance.
I've already spotted Euromoney who seems to provide some nice training programs. Any others names in your mind?
Cheers.
use search! The Analyst Exchange Investment Banking Institute Training The Street
For project finance specific modeling these guys offer some tutorials (free ones too) and training
http://www.navigatorpf.com/tutorials
Bamp!
General financial modelling courses you see discussed on WSO will not be that useful if you're looking at Project Finance as the focus of most 3-5 day programs will basically be to build your three statements projections from a 10K and then do M&A/LBO model. If your accounting and/or excel skills are weak this would be a good first step (especially if you do a cheap self-teach course) but will not prepare you for a PF working environment.
The three reputable training courses for project finance modelling are: 1) Euromoney, 2) NavigatorPF - which is now Corality and 3) Financial Mechanics
From what I heard/seen Euromoney provides a good overview but seems a bit outdated and I would strongly consider either Corality or Fi Mech simply because those guys also actively act as model developers for sponsors and are pretty hard-core about what they do.
I think NavigatorPF/Corality may be better for the entry level/occasional modeler as they place a lot of emphasis on ease of use and presentation, but Fi Mech will force you to really use best practices in their training and I have found a vocal group of professionals at pf banks but also infra fund/pe who swear by their methodology and approach.
Hi, Which one will you consider for an engineering student with no finance background trying to break into infrastructure/power project fiance?
Need Help to Learn Financial Modeling (Originally Posted: 03/11/2016)
Hi everyone!
I want to learn finance modeling. Should I go for online courses as I do not have much time to join regular classes? It will be great for me if anyone can share with me his/her experiences and some reference websites from where I can learn this course in easy steps.
Hi,
Yes, you can learn finance modeling course online. There are many websites that provide online materials to learn this course. If you do not have much time, I would like you to prefer to learn the course by downloading material from good websites. I know few of the websites that provide very good video tutorials from which provide step by step guide:
iBanking Training - ibankingtraining(.)com/home They provide video tutorials for students as well as professionals with money back guarantee. You can also get access to their videos from here: ibankingtraining(.)com/ibankingtraining
Chandoo - chandoo(.)org/wp/financial-modeling They provide an online training program to teach you How to do Financial Modeling using MS Excel and Project Finance Modeling using Excel.
Wall Street Prep - WallStreetPrep(.)com They also provide online material to learn the course.
They all provide very good material from which you can learn your finance modeling course. But if you ask me to choose one, I'd prefer iBanking Training as their video tutorials are very helpful in understanding the concept very easily.
Hi Rose,
Thanks for sharing such good information. I have tried them all and they all provide good material but what I think is iBanking Training provides great explanation and their video tutorials are just awesome. I loved'em very much.
Thanks!
Financial Modeling Self Study Comparison (Originally Posted: 12/09/2013)
Hi all!
I'm considering investing in a financial modeling self study program. I've done a search but most topics seem to be at least a few months old, and as I understand most programs are updated regularly. So my question is: If anybody has any recent experience with multiple such programs (BIWS, WSP, Wall Street Training, etc.) how would you compare and contrast them, what are the pros and cons of each, or alternatively, if you only have experience with one, then how would you rate the usefulness and quality of information? Also how would you compare such a program to high quality free materials such as Macabacus, Khan Academy, etc.? Do these packages offer significant marginal returns when compared to the free resources available? Any and all coments are much appreciated!
bump
Financial Modeling Educational Materials (Originally Posted: 07/03/2012)
I apologize if this has already been covered in a previous thread, but what do you guys think are best financial modeling educational materials---which books, videos, or learning guides should I be looking at?
Thanks very much
Rosenbaum
Thanks
Recommend some books for financial modeling (Originally Posted: 01/31/2010)
Let me know if there are any good books on financial modeling for corporate finance - M&A, LBO, Restructuring, etc...
Thanks guys.
This topic has been covered very recently, please search next time.
PM me, I have a link for you.
Learning Financial Modeling via Online Courses ? (Originally Posted: 06/05/2007)
How would one go about learning Financial Modeling ? Am in Florida at a non-target school and am looking at learning via an online/onsite course.
Does anyone on the boards have experience with any of the following, or a recommendation as to getting this done?
Checked out so far:
Dealmaven WallStPrep AnalystExchange NY Institute of Finance Simon Benninga's book
any others?
Thanks!
DOOM
bumpppppppppp
I did WallStreetPrep and it thought it was pretty comprehensive. My friends told me they did the same training before starting full-time. Dealmaven is like 50% How to Use Excel, which is useful if you don't have any experience using it.
?
Epic 5 year bump.
Hi Victor,
You can try iBanking Training video tutorials also at ibankingtraining .com/ibankingtraining
Cheers!
Epic 4 year bump
Need advice on valuation and modeling training. Where to get, what's applicable? (Originally Posted: 09/05/2008)
I'm trying to find training resources to get ahead of the curve for the MBA summer associate interview that will be happening this fall.
I don't care whether its online or in print.
I've taken the online Training the Street courses, and honestly, their a little to easy for me. Has anyone found any better resources?
Treavor
I like the Wall Street Prep materials (have never used Deal Maven) and have heard that Patrick's advertised Analyst Exchange is quite good (but expensive). Ive used TTS in the past and believe it is very basic. WSP goes into more granular details by providing step by step instructions on how to build a cash flow model w/ projections and then uses the platform to create full-blown lbo models
Self-Study modeling classes before my SA gig? (Originally Posted: 03/09/2013)
Landed my SA gig at a low-tier BB in NYC. Non-target with finance background, I'm thinking about enrolling into one of those online programs, like BIWS or WSP to give myself a head start. Are those courses actually worth it for the job? Or maybe even later for PE recruiting?
Yeah, was wondering the same thing myself. And if not full blown modeling, then any other things to study up on before the SA stint? Valuation? Excel shortcuts? Financial statements? What would allow us to hit the ground running most effectively?
I would definitely look into excel workshops that your university offers. Mine actually offers a whole range (basic-advanced) for free to students. If you've got anything like that available to you then I would recommend taking them just so you know your way around excel.
But unless they specifically state that you need to know X, Y, and Z on excel then I would imagine they'll teach you exactly what to do and how to do it on excel. Having some background knowledge will work to your benefit.
I've done the BIWS excel tutorial as well as the basic modeling. They are great.
Financial Modeling - Books (Originally Posted: 08/04/2014)
Hi Everyone,
I want to learn how to create Financial Models with Excel, or at least start with Excel and later move onto other programs. I'm a non-target student trying to differentiate and better compete with others when recruiting season starts. I've a lot of experience with Excel so far but nothing related to Financial Modeling. I would like a book or two that would start from the very beginning, just explaining everything even if I already know it.
free and efficient way to learn the basics of financial modelling? (Originally Posted: 06/24/2013)
hey guys, what is a free and efficient way to just learn the basics of financial modelling?
I'm not in IB, so i'm not looking on becoming an expert in the area.
Thank you
There are efficient ways to learn, but it's the "free" part that's the problem since all of the modeling materials out there cost a significant amount of $$ except if you search through the public library and find something. Also my university offers modeling lessons, but I think my school is an exception though. People who signup to this site automatically get 6 free lessons I think though, and so you might be able to get something PM'ed from another member who has them.
Start with an Excel course. Before you bother trying to learn financial modeling, you should be able to use Excel, building complex spreadsheets without a mouse.
Prerequisites for financial modeling (Originally Posted: 01/05/2014)
Hello All!
I would appreciate advice on:
Are there any prerequisites to begin financial modeling training (BIWS / WSP)
Specifically concerned about accounting because I don't have much of a finance background.
Would y'all recommend any book/reference that should be used to gain mastery over accounting concepts before I begin modeling training? I'm currently studying FRA from CFA L1 material. Is that sufficient? I have 2 weeks to commence modeling training.
Thank you for your time, people. I'm grateful!
Basic (and I do mean basic) maths, ideally an understanding of accounting although most training courses teach you what you need, efficiency (not proficiency) in Excel, basic finance concepts (PV / NPV, WACC).
What goes into the model is far more important than building it and that you can't really get from a book or course; you need to understand the company / industry / macro factors. Anyone can build a model and put in numbers, very few people can build one which is actually accurate and has value.
@Asatar your kind of response is one of the things that make WSO such a great resource. SB'ed
I have a few more questions based on your response and would be grateful if you could find a few minutes to answer them:
For basic understanding of accounting, I'm studying CFA Level 1 material (financial reporting & analysis, corp fin). These topics would cover the things you mentioned. Would you say this is sufficient accounting knowledge?
If I don't know the industry at all, would efforts at learning modeling be worthless? should I defer such financial modelling training till I atleast develop a basic understanding of my desired industry, and some of the companies?
How should I go about developing industry knowledge?
How should knowledge of macro factors be developed?
Even if you can't answer the above, thanks for your original response. It was gold for me.
No prior experience with financial modelling, where is a good starting point? (Originally Posted: 08/22/2014)
I've read a fair share regarding finance & investing in general both online and through literature, however I haven't encountered any that touched upon financial modelling. I am going into my freshman year of university this september, and I realize that a lot of the technicals are taught there.
However, my situation is that I'm enrolled in the 2+2 program and the first two years are general courses, meaning they don't touch upon any in depth finance at all. What is a good starting point to learn? I've had very little excel experience prior, so think of teaching it to an 8th grader.
I bought the introduction to corporate finance textbook so I will be working on that throughout first year (in addition to reading on my own time and joining the investment club), but when I looked through Rosenbaum's book almost all of it was a second language to me.
Thanks for your input!
just do macabus and you will be far ahead of your peers.
Hi Theresa, would they be the original files? I do have both of those that I downloaded, however they are low quality because it was most likely snipped from the original stream. Please let me know!
Thanks, Jack
Beginner Financial Modelling & Valuations (Originally Posted: 03/21/2013)
Hey Monkeys,
First post here, I wanted to ask some questions regarding financial modelling and valuations.
1) What are the differences between valuations of companies done by M&A division as opposed to equity research? Aern't they both using DCF methods?
2) How should I start as a complete noobie to equity research, should I try out Wallstreet prep despite it being more focused on IBD?
Cheers!
There are a ton of different methods to do valuations, so no, they aren't always DCFs. Not hardly.
Second, as a total noob, pick up the Investment Banking book by Rosenbaum and Pearl. It's an excellent way to start learning about this stuff and will only cost you $40. From there, you can try out the WSP packages.
Thanks alot FSC! So is it safe assume valuations in IBD have some sort of carry over to equity research?
Yes, the valuation methods are the same. 100% carry over!
The level of accuracy and the aim of valuation somewhat differ between IBD and ER, but the tools for valuation are the same! Learn how to use these tools (Rosenbaum book etc) and you will be able to apply them both in ER and IBD.
Def second Rosenbaum suggestion. Great book
The L2 CFA equities book (schweser, anyways) does a pretty good job laying the groundwork for valuations.
Oh yeah and looks like there's a new edition of the Rosenbaum book coming out in May
I really enjoyed the WSP courses, and I use the principles I learned regarding valuation models to build the models I use for stock picking for my personal portfolio.
As for the Rosenbaum book... just ordered it, will be here Wednesday; thanks for the tip!
When u get the Rosenbaum book, be sure to look through Dcfs and trading comparables. Precedent transactions, lbos and sotp don't apply in ER fyi. All the best ahead :)
Any good ways to teach myself financial modeling?? (Originally Posted: 02/05/2012)
Every interview I get they bring up financial modeling, and I understand a lot of it but never actually had the experience of building them. I've looked into prep courses but they aren't offered very often and its hard around my schedule since they are mainly in NY. If I took one I would put it on my resume so they atleast know how I learned. Is there a good self prep one that I can do that will look legit on my resume? Thanks for the help
The website you're posting on sells them, and your own post contains an automatic hyperlink to a place where you can buy them.
Many textbooks have CDs with models on them as well.
Hmmmm...
You could start by preemptively buying some of the Training the Street courses. I'm not sure if these are sold individually, but during my SA I referenced a step-by-step TTS guide to build my own standalone operating model. You'll be leagues ahead of MANY guys gunning for positions if you can do this in advance...
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Found a typo on wall street prep's main site and it's glaringly obvious
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