Financial modeling is an essential skill for anyone looking to enter the finance industry. But it can seem overwhelming when you first start trying to learn it on your own. That’s why we put together this list of some of the best financial modeling textbooks around so you can quickly get up to speed, with a little guidance from experts in the field.
Best Financial Modeling Textbooks
Best Financial Modeling Textbooks
Financial Modelling in Practice: A Concise Guide for Intermediate and Advanced Level
Financial Modelling in Practice (Buy Online) is the leading textbook on building advanced-level Excel-based financial models. It teaches students and professionals alike what they need to know about modeling best practices, model validation techniques, and much more.
The book covers topics such as forecasting cash flow statements (including working capital), valuing companies using discounted cash flows, real options analysis, credit risk assessment, and so on.
The book is designed as a practical handbook for practitioners who need to develop and/or understand financial models. It is also an excellent text for undergraduate students studying business administration, finance, and economics at the university level who want to learn how to build professional-quality financial models using Excel.
Financial Modeling: A Backward Stochastic Differential Equations Perspective (Springer Finance)
Financial Modeling: A Backward Stochastic Differential Equations Perspective (Buy Online) provides a unified view of pricing and risk management problems using backward stochastic differential equations (BSDEs).
It is unique in providing a rigorous treatment of BSDEs including their computation, properties, and applications to advanced topics such as Monte Carlo simulation methods for pricing derivatives and credit risk models.
This book covers all that you need to know about BSDEs to use them effectively in real-world applications. It will appeal both to academics who want to learn how this new approach can be applied in practice as well as practitioners who wish to extend their knowledge beyond PDE techniques into modern derivation theory for pricing financial instruments.
Financial Modeling For Equity Research: A Step-by-Step Guide to Earnings Modeling and Stock Valuation for Investment Analysis
Financial Modeling For Equity Research (Buy Online) provides a structured approach to building financial models from scratch using real examples so that you can quickly get up-to-speed with the important concepts and techniques required in the finance industry today.
This book will guide you through each step of the model-building process while explaining what each part does along the way. By working through this material, readers will gain an understanding of how complex financial models work without becoming overwhelmed by all the details involved in creating them.
Plus, this book also includes over 30 spreadsheets which allow readers to follow along as the author builds different parts of a model throughout each chapter so that they can have something tangible they can refer back to when studying later.
Financial Forecasting, Analysis, and Modelling: A Framework for Long-Term Forecasting (The Wiley Finance Series)
Financial Forecasting, Analysis, and Modelling: A Framework for Long-Term Forecasting (Buy Online) shows you how to create accurate financial models that can help you make more informed decisions about your company’s strategy and future direction.
You’ll learn the techniques used by professional analysts who develop long-term projections of sales, expenses, cash flow, and profits over time horizons from a few months to several years.
This book provides step-by-step guidance on developing long-term projection plans using Microsoft Excel software. It will show you how to build an operational model that allows users to easily change assumptions such as sales growth rates or cost structure changes with just one click – without disrupting other key assumptions.
Plus, this book has a companion website that includes all the tools needed for creating customized financial projections or other key measures of profitability and performance within Excel.
Financial Planning & Analysis and Performance Management (Wiley Finance)
Financial Planning & Analysis and Performance Management (Buy Online) was written by a professional CFO who has been in the trenches for many years. The author shares the knowledge he learned over his career as a senior executive and provides practical advice on what works – and what doesn’t work – when you’re analyzing your company’s finances.
In this book, you’ll learn how to use Excel for financial modeling and forecasting, get an overview of key business metrics such as ROI, and see examples of models that help managers understand their businesses at a glance so they can make better decisions faster.
You’ll also find out about budgeting cycles for both capital expenditures and operating expenses, with tips on creating realistic forecasts based on past performance trends through regression analysis.
This book also covers communication planning/reporting/analysis, metrics & benchmarking as well as how to construct dashboards & visual aids which illustrate complex concepts at a glance while using real-world examples throughout.
Foundations of Real Estate Financial Modelling
Foundations of Real Estate Financial Modelling (Buy Online) is a comprehensive, easy-to-follow guide for students and professionals who want to learn how to build a realistic and robust real estate model using Excel.
It focuses on the fundamentals of finance theory, including discounted cash flow analysis, capitalization rate calculations, net present value analyses, internal rate of return calculations as well as various methods for calculating loan payoffs over time.
Most real estate finance textbooks are either too basic or too advanced for students. They don’t provide enough practical information to be used in a classroom setting, and they’re not detailed enough for professionals who want to learn how to build financial models on their own.
This book provides an easy-to-follow formula that anyone can use to create accurate financial models with Excel. The book is designed so that students will understand the theory behind each step of the model construction process before trying it themselves in Excel.
Advances in Financial Machine Learning
Advances in Financial Machine Learning (Buy Online) covers the emerging area of research at the intersection of finance and machine learning. This book brings together some powerful ideas from both fields to solve real-world problems faced by researchers, portfolio managers, risk managers, quants, etc.
Machine learning provides a way for users to test different hypotheses about market behavior with minimal effort using well-tested scientific methods such as linear regression or logistic regression models trained on historical data.
This book will bridge the gap between these two very important topics by providing you with an understanding of how traditional financial models work, as well as introducing you to new methods for building models using machine learning. In addition, this book will help you understand how machine learning can affect your portfolio management decisions and risk analysis techniques.
In this book, you will learn how to structure Big data in a way that is amenable to ML algorithms; how to conduct research with ML algorithms on that data, and how to backtest your discoveries while avoiding false positives.
The book also contains multiple case studies from various industries which demonstrate real-world applications of both classic and modern ML algorithms in finance. And you’ll be able to test out the proposed solutions on data sets provided by the author or any other publicly available datasets that interest you.
Hands-On Financial Modeling with Microsoft Excel
Hands-On Financial Modeling with Microsoft Excel (Buy Online) aims to help students understand financial modeling concepts using Excel, and it provides an overview of the steps you’ll need to follow to build a successful financial model.
Most books on this topic are too theoretical or lack practical examples. Many authors do not provide enough information about how to build your own models from scratch in Excel. Students who want to learn more about financial modeling need hands-on experience with real business cases, which is exactly what this book offers.
This book will show you how to develop a solid understanding of all the key components that go into building a realistic model including assumptions, scenarios, and outputs. You will also see several examples of different types of models including cash flow projections, balance sheets, and income statements, etc.
Mastering Python for Finance: Implement advanced state-of-the-art financial statistical applications using Python
Mastering Python for Finance (Buy Online) will teach you how to build powerful applications in the field of finance using Python libraries such as TensorFlow, Keras, and SciPy.
This book starts with basic concepts like stocks and options before moving on to more advanced topics like risk analytics using computational methods and time-series data analysis.
Mastering Python for Finance will also teach you how to use Python for quantitative finance tasks like backtesting trading strategies or analyzing risk metrics using Monte Carlo simulations.
By the end of this book, you will be able to apply all these skills when building your own financial models using the Python programing language.
Financial Modeling MIT Press
Financial Modeling by MIT Press (Buy Online) teaches the essential skills of financial modeling, and it’s well suited for those who are currently enrolled in a financial modeling course.
By using real-world examples from different industries, this book illustrates concepts that are applicable across many fields.
This is not just another boring textbook on financial modeling; it’s a comprehensive guide that will help you build your own financial models in no time.
With this book, you will learn how professional analysts build robust financial models without relying too much on complex mathematics or advanced statistical techniques. And you’ll be able to apply these practical skills easily because the author has used numerous real-world examples throughout the book.
Plus, Financial Modeling by MIT Press will show you how to use Excel spreadsheets as an effective tool for solving practical problems, and it also explains the technical details of creating accurate and reliable models with the Microsoft VBA programming language.
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