Comments (64)

Aug 11, 2009
Aug 11, 2009
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.

Aug 11, 2009

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.

Aug 11, 2009

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.

Aug 11, 2009
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!

Aug 12, 2009

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?

Aug 12, 2009
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.

Aug 13, 2009
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.

Jan 20, 2011

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.

Jan 21, 2011

the rosenbaum book is very good...

Jan 21, 2011

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

Jan 21, 2011

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.

Jan 21, 2011

http://macabacus.com/
incredible resource and 100% free

Jan 21, 2011

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.

Jan 21, 2011

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

Jan 21, 2011

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

Jan 21, 2011

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

    • 1
Jan 21, 2011

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.

Jan 21, 2011

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.

Jan 21, 2011

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

Jan 21, 2011

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

Jan 21, 2011

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 :)

Jan 21, 2011

hell yeah stern pride. happy trolling day lol

Jan 21, 2011

Damodaran is a God

Jan 21, 2011

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.

Jan 21, 2011
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.

Jan 21, 2011

Damodaran is a solid book. WOnt regret it.

Jan 21, 2011

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.

Jan 21, 2011

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?

Jan 21, 2011

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 ...

Jan 21, 2011

Download and read this whole book and you will be set for any IB interview.

http://www(dot)mediafire(dot)com/?kok3myivtdj#1

Jan 21, 2011

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

Jan 21, 2011

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

Jan 21, 2011

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

Jan 21, 2011

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?

Jan 21, 2011

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...

Jan 21, 2011
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

Jan 21, 2011

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.

Jan 21, 2011

I think the BIWS modeling course is very helpful for ER as well.

http://www.ldsmusicnow.com

Jan 21, 2011

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

Jan 21, 2011

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

Jan 21, 2011

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 psychiatrist (med school =P)
Previously: investor relations (top consulting firm), M&A consulting (Big 4), M&A banking (MM)

Jan 21, 2011

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.

Jan 21, 2011

http://macabacus.com/
prob the best resource out there

Jan 21, 2011

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).

Jan 21, 2011
Jan 21, 2011
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 psychiatrist (med school =P)
Previously: investor relations (top consulting firm), M&A consulting (Big 4), M&A banking (MM)

Jan 21, 2011

i would combine macabacus and go through it with Rosenbaum

Jan 21, 2011

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.

Jan 21, 2011

Rosenbaum, BIWS, WSP...

Jan 21, 2011

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

Jan 21, 2011
Comment

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

Jan 21, 2011
Comment

Currently: future psychiatrist (med school =P)
Previously: investor relations (top consulting firm), M&A consulting (Big 4), M&A banking (MM)

Jan 21, 2011