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Financial Modeling - Need to learn ASAP

Discussion in 'Business, Careers & Education' started by JSC437, Mar 21, 2011.

  1. gomestar

    gomestar Senior member

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    Indeed the price is good. There's a fair share of stuff I know already, but I've learned it all in bits and pieces so I like the way it starts from zero and moves on from there. And I like the lesson structure, it's much easier for my schedule to look at one 30 min. lesson or 2-3 10-15 minute lessons than to dissect a text book. And along with this, I like that it is a video w/ an excel document and it gives you the before and after excel files rather than having me take the time to create them myself before reading each part of a book. And, of course, the IBD focus.
     
  2. haganah

    haganah Senior member

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    you don't learn from books...you don't learn from websites...you don't even learn from analyst training programs...you learn when someone is yelling at you at 3am. so for, say $1K I'm willing to email you mp3's of me yelling. it will help.
     
  3. Viktri

    Viktri Senior member

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    you don't learn from books...you don't learn from websites...you don't even learn from analyst training programs...you learn when someone is yelling at you at 3am. so for, say $1K I'm willing to email you mp3's of me yelling. it will help.

    [​IMG] [​IMG]
     
  4. Saturdays

    Saturdays Senior member

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    Hello. I have been going on a lot of interviews lately (mostly Corporate Finance jobs) and have been asked about my financial modeling skills. In truth, I have a very basic level of understanding on financial modeling and need to improve my skills/knowledge asap. Any suggestions? Books, online courses, etc..?

    I should have taken the financial modeling course in grad school. [​IMG]


    I'm guessing you are but if not, I would get very fluent with Excel and Access.

    Depending on where you are working you can be modeling in some very odd manner. Some hedge funds do some analysis that will blow any regular financial modelers mind, sometimes its just an advanced way of thinking, other times its just absurd.

    If you are interviewing for Corporate Finance you should also be well aware of NPV financial modeling. Being able to create the financial model and then project an NPV etc..

    Best way to learn is experience, so I wouldn't worry tooo much about not knowing EVERYTHING, most people are looking for competent workers who can get along with the employees and will be a great fit. If you get the interview with someone working who might end up being your boss, then chances are you are VERY close to getting the job, and he is basically just making sure you are not an ass or someone he just personally cannot stand.
     
  5. gdl203

    gdl203 Senior member Dubiously Honored Affiliate Vendor

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    For Corp Fin / IB, you will not need to open Access once
     
  6. Saturdays

    Saturdays Senior member

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    For Corp Fin / IB, you will not need to open Access once

    I've used other peoples access databases to pull item pricing, quantity, availability etc..into excel models. It really just depends what you are working on and who you are working with.
     
  7. gdl203

    gdl203 Senior member Dubiously Honored Affiliate Vendor

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    Saturdays, I don't know what you do but for the OP's career aspirations in IB/corp fin, he does not need to even know that Access exists. He should not be spending a minute trying to learn that software when he has a lot to learn on Excel and particularly on the mechanics of modeling financial statements and transactions. I'm trying to be helpful to the OP here and not waste his time. None of his interviewers will expect him to know MS Access
     
  8. Saturdays

    Saturdays Senior member

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    Saturdays, I don't know what you do but for the OP's career aspirations in IB/corp fin, he does not need to even know that Access exists. He should not be spending a minute trying to learn that software when he has a lot to learn on Excel and particularly on the mechanics of modeling financial statements and transactions. I'm trying to be helpful to the OP here and not waste his time. None of his interviewers will expect him to know MS Access
    Sorry but I have not had any IB interviews, I do know that in my recent Corp Finance interviews I have been asked whether or not I can use Access and particularly use it to link data across to Excel. Apparently a few companies find that important. For your information, as well, not all Corporate Finance positions work with Financial Statements and Transactions. Some positions require you to project NPV for a certain project the company is working on, whether its expanding a Stadium or launching an ad campaign. If he is going to be doing modeling to determine the price of issuing securities, or forecasting price of the stock for a company, well yeah Access has nothing to do with that on his part. If you can learn advanced Excel, I am sure just the basics of Access will be easy to pick up. gdl203 - You are correct though in that he should prioritize Excel over Access in basically every instance, but that doesn't mean he shouldn't know the basics. Also I understand his position interviewing for is primarily M&A, but that doesn't mean he won't get an interview with something more related to what I am talking about since it technically falls within Corporate Finance.
     
  9. gnatty8

    gnatty8 Senior member

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    Saturdays, I don't know what you do but for the OP's career aspirations in IB/corp fin, he does not need to even know that Access exists. He should not be spending a minute trying to learn that software when he has a lot to learn on Excel and particularly on the mechanics of modeling financial statements and transactions. I'm trying to be helpful to the OP here and not waste his time. None of his interviewers will expect him to know MS Access

    + 1,000,000^10
     
  10. eudaimonia

    eudaimonia Member

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    Look for ebook versions of "Financial Modeling in Practice" and "Financial Modeling using Excel and VBA".

    edit: you went to NYU, professor Damodoran's website has great spreadsheets: http://pages.stern.nyu.edu/~adamodar/


    Wow, this site is unbelievable! There are entire courses on here, with webcasts, supporting materials, exams. A video of the valuation class from 2 days ago is already posted. Just amazing. Thanks for linking to this.
     
  11. gdl203

    gdl203 Senior member Dubiously Honored Affiliate Vendor

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    And he's such a great guy - I wouldn't be surprised if he replied to an email/question sent by someone following his course online and not enrolled in the school.
     
  12. v.freeman

    v.freeman Senior member

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    Damodaran is the man. He normally only teaches at the graduate level, but taught Corp Fin one year to the undergrads - probably the best class I took during my four years.

    Keep in mind though, academic valuation is fairly different than what's used in practice (not sure if that's good or bad).
     
  13. gdl203

    gdl203 Senior member Dubiously Honored Affiliate Vendor

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    Damodaran is actually close to what's done in practice. He teaches relative valuation (comps) which is ordinarily not seen as academically correct or relevant - even though it's the primary valuation methodology in practice.
     
  14. Beckwith

    Beckwith Senior member

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    I worked at two different bulge firms that hired Damodaran to come in a teach a modleing class. Really well done.
     
  15. v.freeman

    v.freeman Senior member

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    Damodaran is actually close to what's done in practice. He teaches relative valuation (comps) which is ordinarily not seen as academically correct or relevant - even though it's the primary valuation methodology in practice.

    The way he teaches relative valuation incorporates regression analysis. From what I've seen in practice, most people just use multiples.
     
  16. gdl203

    gdl203 Senior member Dubiously Honored Affiliate Vendor

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    The way he teaches relative valuation incorporates regression analysis. From what I've seen in practice, most people just use multiples.

    True but then again, his class would be 10 minutes long... [​IMG] So he tells his students that it's common practice on the street to just use comparable multiples and simply apply them to metrics - then he gives his own views on how relative valuation should be done to be "correct" (which is as you pointed out using multiple variable regressions).
     
  17. uNiCoRnPriNcEsSx

    uNiCoRnPriNcEsSx Senior member

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    my friend in banking says if you can build models by scratch that'll help a lot in your interviews.
     
  18. v.freeman

    v.freeman Senior member

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    True but then again, his class would be 10 minutes long... [​IMG] So he tells his students that it's common practice on the street to just use comparable multiples and simply apply them to metrics - then he gives his own views on how relative valuation should be done to be "correct" (which is as you pointed out using multiple variable regressions).

    Yeah, I once explained how we were taught multiple regression during an interview. Guy looked at me like [​IMG] Needless to say, I never tried doing that again.
     
  19. v.freeman

    v.freeman Senior member

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    And just so I add some value to this thread, what do you mean by "corp fin". Finance function at a financial services firm? Finance function at an industrial company? Business development?

    The BIWS modules have my recommendations, assuming you mean modeling for business development.
     
  20. gnatty8

    gnatty8 Senior member

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    Yeah, I once explained how we were taught multiple regression during an interview. Guy looked at me like [​IMG] Needless to say, I never tried doing that again.

    lol, this can backfire if you try to outride your skills, you can be sitting across from a prick like me who'll say "Oh really?"

    I used to attend Enron's Super Saturdays every couple months to interview applicants. From time to time you can really run into some truly miserable, sadistic bastards.
     

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