Financial Modeling For Equity Research brings simple lessons about a highly-complex method of financial structure development. Templates are provided for a clearer understanding of the principles, practices, theories, and concepts that constitute the process of developing a structure. With files in the form of templates, readers can systematically create a workable and flexible framework by simply following the information presented in the book.
Those who are new to this kind of practice will be given understandable and comprehensive instructions, strategies, and crucial how-tos necessary for framework and structure building. In line, an easy discussion of other framework and modeling practices are thoroughly discussed, giving newbies a knowledge-laden experience. More than the guaranteed knowledge imparted to novices, it also provides intensive and highly advanced lessons on financial statement linkages, future period calibration, and the utilization of equity risk premium and capital asset pricing model to integrate economic variables in the valuation process.
Financial Modeling For Equity Research highly appeals to students in the field of business and finance. It is of high importance and advantageous as it offers forecasting principles and practices necessary for students’ academic pursuits. Moreover, this book is education grounded that its narrative prepares one for a professional venture. Discussions are meticulous and thorough, leaving no areas untapped, which makes equity research, a complicated topic, very easy to understand.
Generally speaking, this book was written to deliver in-depth discussions of the following:
- Statement linkages
- Framework structures and financial modeling techniques flexible for any company
- Development of a flexible model and integration of numerous inputs to produce upside/downside possibilities
- Development of consensus-based structure and its importance on assessing estimates and
- The use of fundamental analysis to put security’s future possibilities under evaluation.
About the Author
John Moschella CFA, CPA, is a seasoned analyst in the finance and research industry with years of experience mainly dedicated to analyzing companies in several ranges. He initially pursued his BSBA in Finance, MS in Accounting, and MBA from Northeastern University, he first served before serving as an Assurance Associate in PricewaterhouseCoopers. During his years of service in the company, he endeavored in different corporate activities involving analysis of bank mergers during financial decline and crisis.
Back in 2014, he pursued his career as Lead Risk Analyst in General Electric Corp. During this time, and he made commendable findings, including regression models crucial for asset predictability. Later on, he established his consultancy firm that renders capital planning support, all while leading the operation of Gutenberg Research.
Table of Contents
- Chapter 1: Introduction to Financial Modeling
- Chapter 2: Building a Basic Financial Statement Model
- Chapter 3: Converting to a Tier 2 Earnings Model
- Chapter 5: Model Calibration and Forecasting
- Chapter 6: The DFC Inputs (Beta, ERP, CAPM, & WACC)
- Chapter 7: Discounted Cash Flow Valuation
- Chapter 8: Market Multiple-Based Valuation
- Chapter 9: How to Use Your Earnings Model
- Appendix 1: Using Regression Analysis to Predict Earnings