on 10 November 2014
This book purports to be "a guide designed for investment banking and private equity professionals". Well, it isn't.
The book is a simplistic introduction to financial modeling and valuation. Financial concepts and tools are only covered in the most basic of ways and, more importantly, the modeling techniques are NOT based on best-practice standards in the banking industry.
I will give you two examples:
1) the modeling of most balance sheet items utilizes cash flow statement entries. This is not the industry standard technique, because it suffers from several problems (just look at the PP&E formula in the WalMart model on the book's website and you'll see what I mean)
2) The model's cash balance can become negative. This is something that first year analysts in investment banking are taught to avoid in training sessions even BEFORE they hit their desks.
I could give you more bad practice examples from the book, but you get the point.
This book may help university students in their first approach to financial statement modeling, but even at entry level there are better textbooks to use.
Professionals, MBA students and anyone else seriously interested in financial modeling should look elsewhere. A better book is Tjia's book on modeling published by McGraw-Hill.
on 28 September 2013
Good book for modeling and especially if you are starter. The book start from basic using finance, accounting, Ms Excel, strategy, research. He has put practical approaches in the book for easy learning. Don't miss the online templates.