About the book
Financial Modeling For Equity Research: A Step-by-Step Guide to Earnings Modeling is a step-by-step demonstration for creating a financial model. It includes Excel files that discuss key concepts to use as templates in creating an earning model that is suitable for any company. This book is not only for readers who are well-equipped with knowledge about the financial world but even non-professionals without prior knowledge of financial analysis. This book will help readers gain a fundamental understanding of what modeling entails and how to create a basic form of it. Professionals working in the financial industry will learn more about complex topics, including financial statements and future period calibration.
This is a recommended book for business and finance students. The fundamentals of forecasting are a major factor in the development of a student academically, as all these will help the student prepare for his or her future career. This will help every reader gain valuable insight on various topics, such as building a dynamic model. This book is for anyone interested in fundamental analysis.
The book gives the readers an easy-to-understand step-by-step guide to creating financial models used in institutional research firms and investment banks. The example financial models, as shown in this book, are not as complex as the ones used in professional firms, which allows the less-practiced reader to keep up with the topic and learn it with ease.
About the Author
John Moschella has gained a decade’s worth of experience in analyzing companies. He earned a BSBA in Finance from Northeastern University, where he also received his MS in Accounting and MBA. He began his career as an Assurance Associate at a public accounting firm in New York. In 2014, Moschella worked as a Lead Risk Analyst at a US-based corporate landing-focused bank.
Table of Contents
- Ch. 1 Introduction to Financial Modeling
- Ch. 2 Building a Basic Financial Statement Model
- Ch. 3 Converting to a Tier 2 Earnings Model
- Ch. 4 Converting to a Tier 1 Earnings Model
- Ch. 5 Model Calibration & Forecasting
- Ch. 6 The DCF Inputs (Beta, ERP, CAPM, & WACC)
- Ch. 7 Discounted Cash Flow Valuation
- Ch. 8 Market Multiple-Based Valuation
- Ch. 9 How to Use Your Earnings Model
- Appendix 1: Using Regression Analysis to Predict Earnings