There are plenty of ways to learn financial modeling. People usually depend on top institutes which provide financial modeling training. During the training, many of them need to visit online learning portals to clear their doubts as well.
Books are the one of the most helpful ways to learn Financial Modeling. There are a lot of books available which can provide you the required knowledge. It’s not an easy task to pick the most appropriate book. So here, we’re listing some of the top rated books: Â
Based on the requirement, we categorize the Financial Modeling Books in the following levels:
Beginners Level:
Financial Modeling: by Simon Benninga
This book explains the implementation of financial models in Excel. Major topic areas are
- Corporate finance
- Portfolio management
- Excel Spreadsheets
Foundations of Real Estate Financial Modelling:Â by Roger Staiger
This book is designed to provide an overview of financial modeling for real estate projects. Chapters include:
- Information on Amortization
- Equity Bifurcation
- Accounting statements
- Additional asset classes etc
Financial Modelling: by Joerg Kienitz and Daniel Wetterau
The book enables the reader to model, design and implement a wide range of financial models for derivatives pricing and asset allocation, simulation techniques, and calibration even for exotic options etc. This Financial Modelling book comprises with facts about:
- Risk neutral densities, implied volatility surfaces, option pricing and typical paths for a variety of models including SABR, Heston, and Bates
- Fourier transforms, and detailing the implementation of the COSÂ
- Usage of MATLAB and its basic functions applied for financial engineering
Intermediate Level:
Financial Modelling in practice: Â by Michael Rees
This book gives a brief idea on the intermediate and advanced level of Financial Modeling. It comprises with the principles of designing, structuring and building accurate models in Excel. Major topic areas are
- Modelling of financial statements
- Cash flow valuation
- Risk analysis
- options and real options
Financial Modeling and Valuation: by Paul Pignataro
This book guides you in the fundamental tools for properly assessing the stock investment. Major focus areas of this book are
- Step-by-step financial modeling – taught using downloadable Wall Street models
- In-depth coverage of valuation techniques like calculating LTM data, smoothing EBITDA and Net Income
- Chapter end questions, practice models, additional case studies and common interview questions
Advanced Level:
The Handbook of Post Crisis Financial Modelling:by Emmanuel Haven and Philip Molyneux
This Handbook represents original research on the key issues affecting financial modeling in the areas of banking, mathematics, and law. This book tells you about the topics which are used for modeling in Excel. The topics are
- Role of central banks, governments,
- Policy making,
- Economic and financial variables
Professional Level:
Financial Forecasting, Analysis and Modelling: by Michael Samonas
This book provides a complete structure of long-term financial forecasts, helping financial professionals in their planning and budgeting process. This book guides readers by
- Developing long-term projection plans
- Sensitivity analysis
- Monte Carlo Simulation and more
Building Financial Models (McGraw-Hill Finance and Investing): by John S. Tjia
This book provides guidance to designing, building, and implementing valuation projection models to keep accounting and finance professionals competitive in today’s marketplace. Major topic areas of Building Financial Modeling are
- Discounted Cash Flow modeling
- Mechanics of projection models
- Cash sweep and more
Financial Modelling and Asset Valuation with Excel: by Morten Helbaek
This book gives you straight into the knowledge about financial theory with Excel; providing you with the skills you need to build financial models for private or professional use. Subjective areas of this Financial Modelling and Asset Valuation book are
- Net present value
- Internal rate of return
- Risk, Portfolio theory
- CAPM, Project Valuation Simulation,
- Sensitivity Analysis and many more using with Excel
Financial Modeling for Business Owners and Entrepreneurs:by Tom Y. Sawyer
This book guides you with a step-by-step methodology for planning and modeling for a company and helps in solving specific business problems. The chapters that are included in this book are as following
- High level discussion of business principles and practical suggestions for the business entrepreneurs
- Development of organizational concepts and the forecasting of staffing and related costs
- Assess the life cycle cost of the sales and marketing function, modeling the fixed and variable costs associated with the company’s product and services
There is a lot of information you can get from these books which will helps you in preparing Financial Models . So which one you are planning to read first?
EduPristine provides online as well as classroom training on Financial Modeling. So along with the theoretical knowledge if you are looking for practical training then check out the Financial Modeling Course provided by EduPristine
Related links –
Benefits of Financial Modeling Course
Skill and Responsibility of Financial Modeling Analyst
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