The Best Financial Modeling Books of 2021

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What does it take to get started in financial modeling? What is financial modeling? How can you learn even more about it? All of these are questions that you might be asking yourself, and they’re very valid reasons for you to be looking for the best financial modeling books. But just what are you going to do to answer those questions?

We’re going to take a look at some of our favorite books when it comes to learning the ins and outs of financial modeling so that you can get started with it yourself. Whether you want to go with the top books in the industry or you’re looking for something that fits into your budget a little better, we have several options for you.

Hopefully, by the time you’re done with these books, you’re going to have the financial modeling course that you need, and you’ll be more than ready to get started investing on your own. So, let’s take a look at just what the best books are right now and how they can help you learn all about financial modeling.

If you want to just get back to studying, get our top choice for financial modeling book here.

Our Top Favorite
Financial Modeling, fourth edition (The MIT Press)
Our Top Runner Up
Operational Risk Modeling in Financial Services: The Exposure, Occurrence, Impact Method (Wiley Finance)
Our Top Value Pick
Financial Modeling in Excel For Dummies (For Dummies (Lifestyle))
Book Title
Financial Modeling
Operational Risk Modeling in Financial Services: The Exposure, Occurrence, Impact Method
Financial Modeling in Excel for Dummies
Prime Eligible?
-
-
Our Top Favorite
Financial Modeling, fourth edition (The MIT Press)
Book Title
Financial Modeling
Prime Eligible?
-
Our Top Runner Up
Operational Risk Modeling in Financial Services: The Exposure, Occurrence, Impact Method (Wiley Finance)
Book Title
Operational Risk Modeling in Financial Services: The Exposure, Occurrence, Impact Method
Prime Eligible?
-
Our Top Value Pick
Financial Modeling in Excel For Dummies (For Dummies (Lifestyle))
Book Title
Financial Modeling in Excel for Dummies
Prime Eligible?

Last update: 2021-01-17

Our Favorites for Best Financial Modeling Books

When it comes to getting started with anything new, you want to get as much information as you can, right? Well, that’s what our favorites are going to help you with. These financial modeling books are designed to teach you all of the important stuff and make sure that you can get started as soon as possible.

So, let’s take a look at the best of the best books and see just what you can learn by reading through them and starting to put some of the ideas that are going to be mentioned here into practice.

Financial Modeling by Simon Benninga

This is actually the fourth iteration of Financial Modeling because it’s such a high-quality manual. Benninga has created a book that details some of the most important concepts related to financial modeling, including different pricing methods, array functions, and how to get the right information that you need. It’s actually touted as an excellent reference whether you’re taking a class on the subject or you’re trying to learn entirely on your own.

You’ll get both basic and more advanced methods and options to work with, and you’ll have updates with each new version that detail some of the crucial strategies and concepts that are just coming out. There’s even online access to even more information included with a new book purchase so you can get even more advice and support along the way as you learn about financial modeling.

What Makes it Unique:

  • Updated with new versions regularly to detail the latest information
  • Can be used alone or in conjunction with a course on financial modeling

Why Choose This Financial Modeling Book:

  • Uses a learning by doing methodology to help you learn the subject matter
  • Concepts are clear and concise for beginners with no background in financial modeling
On Sale
Financial Modeling, fourth edition (The MIT Press)
Financial Modeling, fourth edition (The MIT Press)
  • MIT Press MA
  • Hardcover Book
  • Benninga, Simon (Author)

Last update: 2021-01-17


Modeling Financial Markets: Using Visual Basic and Databases to Create Pricing, Trading and Risk Management Models by Benjamin Van Vliet and Robert Hendry

Much of the current software has deficiencies related to financial modeling, and that’s where Modeling Financial Markets can help you. Van Vliet and Hendry designed their book to give you a good look at what is possible without the software. Instead of focusing on what these systems can do (and can’t do), Modeling Financial Markets focuses on some of the most sophisticated methods of modeling.

The concepts in Modeling Financial Markets are presented in a way that’s very hands-on, so you can get an idea of just what you’re doing and how to make it work for you in the best way possible. It uses highly innovative techniques through coding and Excel, which means it can be a little bit complex for some, but it’s going to give you some of the best control over everything you’re doing, without the need for standard software.

What Makes it Unique:

Why Choose This Financial Modeling Book:

  • Shows you the most innovative ways to make up for current deficiencies in software
  • Allows you to develop your own financial software

Last update: 2021-01-17


Financial Modeling and Valuation: A Practical Guide to Investment Banking and Private Equity by Paul Pignataro

If you’re looking for more information about equity modeling, then Pignataro’s book is a great way to go. Financial Modeling and Valuation focuses on how you can assess stock investments and make the most financially sound investments. With Financial Modeling and Valuation, the entire book is based around a case study of Wal-Mart so you can get a real example of everything that’s being talked about.

In Financial Modeling and Valuation, they will show you all of the different analyses that are done by real professionals and real Wall Street Analysts to make sure you know how to create a model for yourself. In fact, as you go through Pignataro’s book, you’ll be working on your own model and valuation in a step-by-step process designed to give you a better understanding of the future.

What Makes it Unique:

  • Learn about modeling based on a real company currently in business
  • Develop techniques that are being used by Wall Street professionals

Why Choose This Financial Modeling Book:

On Sale
Financial Modeling and Valuation: A Practical Guide to Investment Banking and Private Equity
Financial Modeling and Valuation: A Practical Guide to Investment Banking and Private Equity
  • Used Book in Good Condition
  • Hardcover Book
  • Pignataro, Paul (Author)

Last update: 2021-01-17


Runner Ups for Best Financial Modeling Books

If you’re looking for a little more instruction on some of the specific areas of financial modeling or if you don’t quite like the books in our favorites list, we have a few other options for you.

These are our runner ups for financial modeling, and we think these are definitely going to teach you a lot as well. You’ll learn some of the skills and techniques you need to get started and to improve along the way, which can help you build upon some of the ideas you’ve already started with in the favorites list.

Operational Risk Modeling in Financial Services: The Exposure, Occurrence, Impact Methodby Patrick Naim and Laurent Condamin

When it comes to understanding the risks associated with anything, you can learn a lot from Operational Risk Modeling in Financial Services. Written by Naim and Condamin, you’ll learn about proven strategies and approaches, including the XOI method. That’s what Operational Risk Modeling in Financial Services is all about, using the XOI method to better understand your current risk.

The information you’ll find in Naim and Condamin’s book is a proven approach that really does remove or at least significantly mitigate much of the problems with other methodologies. It uses practical guidance and also looks at ways to improve the future of risk modeling at the same time. Operational Risk Modeling in Financial Services shows three different tools to help you with your process and encourage your success in risk modeling.

What Makes it Unique:

  • Looks at a new approach and strategy through the XOI method
  • Shows ways to mitigate or remove risks

Why Choose This Financial Modeling Book:

  • Explores measurements and how challenges can occur
  • Discusses the three main tools of operational risk analysis

Last update: 2021-01-17


Best Practices for Equity Research Analysts: Essentials for Buy-Side and Sell-Side Analysts by James J. Valentine

Equity research analysts commonly learn through an apprenticeship; however, this isn’t the only way or the best way to learn. Best Practices for Equity Research Analysts is all about learning the skills and techniques it takes to become a professional. Valentine discusses how to identify and monitor critical factors, how to create and update forecasts, and even how to make stock recommendations.

With Best Practices for Equity Research Analysts, you’ll learn how to set up your information hub, influence others, understand the different aspects of the trade, and more. Not only that, but Valentine writes this book in a way that you can use it as a reference even after you’ve started working in the field. You’ll start with a foundation in equity research analysis rather than being thrown in with a professional and no idea what you’re doing.

What Makes it Unique:

  • Build a strong foundation in equity research analysis before you start
  • Blog available for even more in-depth content

Why Choose This Financial Modeling Book:

  • Strong overview of most of the information you’ll need for this career
  • Exercises presented throughout the book for more background
Best Practices for Equity Research Analysts : Essentials for Buy-Side and Sell-Side Analysts
Best Practices for Equity Research Analysts : Essentials for Buy-Side and Sell-Side Analysts
  • VALENTINE,J. (Author)
  • English (Publication Language)
  • 464 Pages - 01/19/2021 (Publication Date) - MC GRAW HILL INDIA (Publisher)

Last update: 2021-01-17


Models at Work: A Practitioner’s Guide to Risk Management by Jawwad Farid

Models at Work is an excellent guide for anyone who is looking to develop a better understanding in finance. Farid looks at risk management as well as how it applies within financial services and doesn’t delve too deeply into the specifics about formulas or the theory behind them. Instead, Models at Work focuses on the high-level content that you need to get started.

Written in an easy to understand way for newcomers into risk management, Models at Work is practical and presents real, reusable risk models that can be used in your work. Farid looks at ways that errors can be found in models, how to prevent this from happening, and how to value non-standard assets when working in your financial models.

What Makes it Unique:

Why Choose This Financial Modeling Book:

  • Starts with the very basics of the subject to help beginners get a foundation of the topic
  • Application of modeling to different situations to make it easier to understand
On Sale
Models at Work: A Practitioner's Guide to Risk Management (Global Financial Markets)
Models at Work: A Practitioner's Guide to Risk Management (Global Financial Markets)
  • Hardcover Book
  • Jawwad Ahmed Farid (Author)
  • English (Publication Language)

Last update: 2021-01-17


Value Picks for Best Financial Modeling Books

If you’re looking to save money and you still want to learn as much as you can about financial modeling, you should take a look at our value picks. These books are designed to give you a good amount of information without you having to break the bank in order to get it. So, if you’re looking for a way to get a head start, then you’re going to do really well with any of these. They’ll make sure that you’re introduced to financial modeling in a way that makes it easier to understanding and simple to follow along with.

Financial Modeling in Excel for Dummies by Danielle Stein Fairhurst

If you’re looking to create your own financial models using Excel, but you’re not really an Excel expert, then you’re going to want to check out Financial Modeling in Excel for Dummies. Fairhurst points out the six most important rules related to building your financial model, as well as the ways that you can improve upon models that you might get from others, so they work for you. Books in the ‘for Dummies’ series are great at starting you out from the beginning and making sure to explain all of the different steps along the way.

With Financial Modeling in Excel for Dummies, you’re going to have precise advice and tips for how to improve problems that clients might be having and also how to create your own sound strategies. Fairhurst shows you how all of this can be done without the need to invest in expensive software and specialized tools as well. Everything that you need is available in Excel, and with Financial Modeling in Excel for Dummies, you’re going to learn all of the different techniques to use within this program.

What Makes it Unique:

  • Learn to develop your own financial models with Excel
  • Avoid having to buy expensive modeling software

Why Choose This Financial Modeling Book:

On Sale
Financial Modeling in Excel For Dummies (For Dummies (Lifestyle))
Financial Modeling in Excel For Dummies (For Dummies (Lifestyle))
  • DUMMIES
  • Fairhurst, Danielle Stein (Author)
  • English (Publication Language)

Last update: 2021-01-17


Financial Modeling for Equity Research: A Step-by-Step Guide to Earnings Modeling and Stock Valuation for Investment Analysis by John Moschella

You want to get involved in financial modeling, but you don’t want to have to read extensive technical textbooks to do it. Financial Modeling for Equity Research takes care of that for you. You’ll learn what it takes to create your own model in a clear and easy way. Moschella has created a book that starts by teaching you about financial modeling in general and then teaches you how to create your own.

Financial Modeling for Equity Research walks you through the process of building a modeling using a real company as an example. You’ll get advice and information about how the model should look throughout the process, and you’ll be able to check out spreadsheets while you’re going through everything. Financial Modeling for Equity Research explores all of the concepts related to getting you into financial modeling as a career.

What Makes it Unique:

  • Written by someone who has actually done all of these processes
  • Provides a step-by-step guide to create a financial model

Why Choose This Financial Modeling Book:

  • Includes extra materials that can be used alongside the book
  • Offers frequently asked questions, potential pitfalls and more
On Sale
Financial Modeling For Equity Research: A Step-by-Step Guide to Earnings Modeling and Stock Valuation for Investment Analysis
Financial Modeling For Equity Research: A Step-by-Step Guide to Earnings Modeling and Stock Valuation for Investment Analysis
  • Moschella CFA CPA, John (Author)
  • English (Publication Language)
  • 239 Pages - 09/08/2019 (Publication Date) - Independently published (Publisher)

Last update: 2021-01-17


How to Choose the Best Financial Modeling Book for You

If you have already gone through the different books and options that we’ve talked about above and you still want to learn more, there’s definitely something out there for you. We’ll take a look at some of the different tips and techniques you should be exploring and how to choose the right books for yourself in this section. Hopefully, by the time you get through here, you’re going to know what to look for in your next financial modeling books.

1. Instructional guide – If you’re new to financial modeling, it’s crucial to have a book that will walk you through what you need to do in order to learn it. This process is highly mathematical and requires you to have a good, strong foundation to really understand it. By working with an instructional guide, you’ll be able to build the skills you need and get to a point where you can accurately create these models.

2. Your style of modeling – Some people use extensive coding (in different formats like Python) to carry out financial modeling. Others prefer to use Excel to create their models. Look for books that are going to offer you the same type of teaching that you’re going to use. Learning the coding is not going to do you any good if you’re planning to create all of your content in Excel, for example.

3. External resources – Because the field of financial modeling is one that is continually changing, you may want a physical copy (or digital copy) of a reference book, but you may also want to look for something that will give you access to more. Some books will provide you with access to websites or Facebook groups or ways to contact professionals within the field to get more information that’s updated frequently.

4. Exercises available – A book that just tells you what to do can be good, but one that actually gives you exercises that you can try along the way is going to be better. Look for a book with real case studies that you can read or (even better) with exercises that you can do as you’re reading. This will help you actually apply your new learning and make sure that you’re getting the information as you go instead of getting to the end and being lost.

5. Risk mitigation – You want to know how you can mitigate the amount of risk that you are taking on with financial modeling but be wary of any books that tell you they can completely remove your risk. There is no way to get rid of all risk when it comes to any form of investment strategies, so make sure that you are evaluating what the author is telling you before you buy into their system.

6. Proven strategies – You want to know that the information you’re reading about and planning to use for yourself has actually been verified. You want something that is actually going to work, and that will be high quality. You want to know that other people have made money by doing the same things, so take care to look at these different strategies and who is actually using them.

7. Designed for beginners – If you’re just getting started, you’re going to want a book that’s meant for someone like you. Don’t get a book that is going to start out way over your head because you could find yourself discouraged long before you actually get anywhere. You want a book that will get you through the basics and help you to keep progressing from there.

8. Is it easy to implement? – Can you actually implement the strategies that you’re being told to do? If the book is too old, the strategies it tells you to use may not be possible. Sometimes, however, books are written on strategies that are very obscure or only successful in extremely limited situations. You want to have a method that can work, and while you’re willing to put in some effort, you don’t want to have to babysit the system 24/7.

9. Why you need it – Another vital concept, if you’re just getting started, is for your chosen material to explain precisely why you actually want to do financial modeling. If you’re working in a business, you’ll already know how this can help you, and it may be a necessity for your job. If you’re looking to get into the field of trading or you want to do trading for your personal situation, you may want to know more about just why it’s so important.

Wrapping Up the Best Financial Modeling Books

Putting everything together, in this guide we reviewed the following:

Our Top Favorite
Financial Modeling, fourth edition (The MIT Press)
Our Top Runner Up
Operational Risk Modeling in Financial Services: The Exposure, Occurrence, Impact Method (Wiley Finance)
Our Top Value Pick
Financial Modeling in Excel For Dummies (For Dummies (Lifestyle))
Book Title
Financial Modeling
Operational Risk Modeling in Financial Services: The Exposure, Occurrence, Impact Method
Financial Modeling in Excel for Dummies
Prime Eligible?
-
-
Our Top Favorite
Financial Modeling, fourth edition (The MIT Press)
Book Title
Financial Modeling
Prime Eligible?
-
Our Top Runner Up
Operational Risk Modeling in Financial Services: The Exposure, Occurrence, Impact Method (Wiley Finance)
Book Title
Operational Risk Modeling in Financial Services: The Exposure, Occurrence, Impact Method
Prime Eligible?
-
Our Top Value Pick
Financial Modeling in Excel For Dummies (For Dummies (Lifestyle))
Book Title
Financial Modeling in Excel for Dummies
Prime Eligible?

Last update: 2021-01-17

Those who are looking to get into financial modeling can learn a great deal from any of these books or from this process to choose your own.

Modeling Financial Markets is a great option from our favorites list if you’re planning to use coding yourself to create your models. It will teach you how to get a model together from scratch.

Models at Work, on the other hand, is great if you’re really into finance but not so much the theory of how financial modeling works.

And finally, you can’t go wrong with Financial Modeling for Dummies if you’re just getting started. It will give you an in depth look at everything financial modeling.

If you found this post helpful, check out our other financial and professional book reviews here.

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Professor Conquer
Professor Conquer

Professor Conquer started Conquer Your Exam in 2018 to help students feel more confident and better prepared for their tough tests. Prof excelled in high school, graduating top of his class and receiving admissions into several Ivy League and top 15 schools. He has helped many students through the years tutoring and mentoring K-12, consulting seniors through the college admissions process, and writing extensive how-to guides for school.

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