Financial Analysis & Modelling Books for a New Analyst?

Compiling Nomad Cap’s tweet replies

I’m trying to be helpful by listing and linking people’s recommendations for books on financial statements analysis and modelling useful for a new analyst.

Inspired by Nomad Cap’s [since deleted] tweet, “Can anyone recommend a book/books on financial statements analysis and modelling for a new analyst with very little finance training?”

Valuation and Analysis

• Best Practices for Equity Research Analysts by James Valentine

• Financial Statement Analysis: A Practitioner’s Guide by Martin S. Fridson and Fernando Alvarez

• How to Read a Financial Report: Wringing Vital Signs Out of the Numbers by John A. Tracy & Tage C. Tracy

• Investment Banking: Valuation, Leveraged Buyouts, and Mergers and Acquisitions by Joshua Rosenbaum & Joshua Pearl

• The Little Book of Valuation by Aswath Damodaran

• Valuation: Measuring and Managing the Value of Companies by McKinsey & Company

• Value: The Four Cornerstones of Corporate Finance by McKinsey & Company

• Warren Buffett and the Interpretation of Financial Statements by Mary Buffett & David Clark

• Why Stocks Go Up and Down by William H. Pike CFA and Patrick C. Gregory CFA

Corporate Finance

• Corporate Finance by Stephen Ross, Randolph Westerfield , et al.

• Financial Accounting: Reporting, Analysis And Decision Making by Shirley Carlon, Rosina McAlpine, et al.

• Financial Reporting by Janice Loftus, Ken Leo, et al.

• Fundamentals of Corporate Finance by Jonathan Berk , Peter DeMarzo, et al.

• Narrative and Numbers by Aswath Damodaran

Financial Modelling

• Financial Modeling by Simon Benninga

• Guide to Business Modelling by John Tennent & Graham Friend

• Macabus Industry Business Operating Model

Misc

• Financial Shenanigans by Howard Schilit , Jeremy Perler , et al

• Investor Amnesia [Newsletter]

• Investment Banking Courses

• William Ackman: Everything You Need to Know About Finance and Investing in Under an Hour [YouTube]

Best thing to do is download a sell side report, read it thoroughly, email the analyst with feedback and ask politely for their model. Then go line by line with the model and the SEC website to understand the numbers and how they build to a price target

Alex Good @goodalexander

@nomad_cap Best thing to do is download a sell side report, read it thoroughly, email the analyst with feedback and ask politely for their model. Then go line by line with the model and the SEC website to understand the numbers and how they build to a price target

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