Certainly there is merit to the analytical process of financial modeling: combing through public data, interviewing management teams, learning about industry trends and comparing different companies on specific empirical data. The words of economist and model-sceptic, Ariel Rubinstein accentuate the point: Models can be denounced for being simplistic and unrealistic, but modeling is essential because […]…
DCF is the valuation method most frequently taught in the classroom and it is considered the “most academic” of the valuation tools. DCF also happens to be the most misleading and falsely accurate methodology when it comes to company valuation. BUT, before you go guns blazing into your interview castigating DCFs, a) make sure it’s not […]…
A common criticism made about new financial analysts is that they “lack judgement” or “don’t see the big picture.” Not good, come bonus time. So what is good judgement & how can you see the big picture when hammering out your first financial models? Get Clued In Before Asking Questions Questions are great. But stupid questions are, well, […]…
If you’re trying to get into banking, equity research or any number of other competitive finance jobs, you’ve probably heard that you’ll need to learn “how to model.” But what does that really mean? Do you know how to model? Financial modeling encompasses a broad range of forecasting and valuation disciplines used across many fields of finance. Models […]…