Finance, though a lucrative domain for building your career is often complicated to navigate for the beginners who are planning to enter this field. One of the high paying roles you can secure in this field is that of a financial modeller. Financial modelling requires a professional to analyse trade and predict market behaviour based on which various risk identification and mitigation strategies can be implemented.
Therefore to help professionals in the field, as well as, to guide the financial analyst aspirants we decided to list top 5 financial modelling books which everyone should read:
Financial Modelling For Business Owners and Entrepreneurs
Written by Tom Y Sawyer, this book is a layman’s guide to financial modelling. For those who are not proficient with the concepts of finance, the book acts as a bridge between financial modelling and entrepreneurship. The book tends to focus on the concept of generating maximum ROI with the lowest possible risk. It further tends to help the business owners understand project planning and model creation which can help generate maximum revenue.
Financial Analysis and Modelling Using Excel and VBA
If you are looking to understand and learn financial modelling in detail, then this book by Chandan Sengupta is your best bet. Starting from the very scratch, this 700-page long book introspects and examines every concept related to financial modelling and creation in detail. It further has supporting examples for the readers to comprehend the topic better. The book, however, is for beginners and wouldn’t be of much help to the experts in the field as it covers the most topic from the beginner’s point of view.
Financial Modelling
For those who are looking to understand and learn advanced concepts of financial modelling, this book written by Stephane Crepey comes as a great help. This book, however, requires the reader to have some basic knowledge of financial modelling concepts as well as advanced mathematics. The author has tried covering topics like CVA computations and BSDEs which come in handy during risk assessment and management.
Building Financial Models
John Tjia, a renowned financial analyst, has written this comprehensive guide explaining the basic as well as advanced concepts of economic modelling in detail. This is one of the few books available in the market which is of great use to experts and newbies alike. The book is crisp in its content and explains all the concepts with suitable examples, which are easy to understand and implement. The book in its later section describes how to build and deploy models using excel and has exercises for you to test your skill.
The Oxford Guide To Financial Modelling
One of the best books in the market, The Oxford Guide to Financial Modelling, is a perfectly balanced book when it comes to theory and implementation. The book tends to explain various financial models and then dwells into the implementation aspects where a reader is taught the use of each model. It covers a wide spectrum of topics starting from valuation in corporate finance to firm valuation of security markets which any reader can easily understand.
So, these were our top 5 financial modelling books which we would recommend every financial analyst to read and understand. If you think we missed some great read, do let us know in the comment section below.
