Good books/courses on equity valuation modelling

[system]

@purealpha

A few random thoughts here, maybe no real point, just rambling. But I’ve seen some horrible models (most of them are). This is an opportunity if you’re a geek like me; to 1) do it better, and/or 2) rip appart the logic in the useless model. It’s also a “hard skill”, meaning something tangible you can do.

This year we’ve been working on a multi-billion dollar deal with a huge name investor (can’t name em obviously), party A invests $xBB with party B, gets paid back when? Parties A and B both have tons of imbedded options. Endless scnarios. A new rapidly evolving and strange market. The weirdest deal I’ve ever modeled.

Anyhow I got ahold of the model from the analyst on party A side. It was as if the person never worked in finance. Shock. There was some really odd stuff in that model. And I bet the guy went to a top school and was getting paid big bucks to churn out that crap too. [facepalm]

So yeah, learn to model, it can be handy.

You should work in sales dude. A 100% garbage post referencing nothing.

[system]

Okay but I don’t work in sales, I work in modeling.

What would it reference Blake? LOL did you build the model on party A side?

[system]

@purealpha

Okay but I don’t work in sales, I work in modeling.

What would it reference Blake? LOL did you build the model on party A side?

I don’t understand your gibberish. You work in South Korea and have bragged about ripping off your employer for tens of thousand of dollars. What is “modeling?” Are you a quant or a middle office risk manager or “analyst or associate”? When you deceived your current employer, were you on the buy or sell side? What does “party A side” mean?

These are all topics we need to understand to help you.

[system]

Jezus dude, have a drink or do a meditation or something.

So you are mad about something unrelated to the topic and posting gibberish. Perhaps some “anti-everyone not in the USA” hate too right? Perhaps you live in Texas or somewhere? Thanks for your kind offering of help, that is so nice of you.

Modeling refers to analyzing stuff in a way that helps with the decision making. Example: some guys are going to loan you $3B, do you proceed with the deal or not? That $3B comes with strings attached, of course. Are you just going to flip a coin Blake? LOL. Does that help answer your question? We need models. When you create a model you are essentially trying to model reality and run different scenarios, but since reality is too complex, we make assumptions and build a simplified model of reality. Right?

Party A is the investor and party B is the firm receiving the investment. Party B needs to pay a (hopefully) awesome rate of return. Come on, I did lay this out and tried to keep it simple. Was it not simple enough?? I just found it amazing an investor this known had crap models on their side. You don’t need to go to the white board and sketch it out.

Maybe you should “Live. Laugh. Love” as your cute little signature reads. [idea]

Again, the problem I have observed with most models over many years doing this, and being flown around the world to provide this service on important deals; is that they suck. There is an attempt to make things fancy to dazzle the boss, but when someone who can think pokes around and questions the logic…they just don’t make sense. So to someone looking at aquire some useful skills, it’s an opportunity, if you can build models that make sense.

[system]

@purealpha

Jezus dude, have a drink or do a meditation or something.

So you are mad about something unrelated to the topic and posting gibberish. Perhaps some “anti-everyone not in the USA” hate too right? Perhaps you live in Texas or somewhere? Thanks for your kind offering of help, that is so nice of you.

Modeling refers to analyzing stuff in a way that helps with the decision making. Example: some guys are going to loan you $3B, do you proceed with the deal or not? That $3B comes with strings attached, of course. Are you just going to flip a coin Blake? LOL. Does that help answer your question? We need models. When you create a model you are essentially trying to model reality and run different scenarios, but since reality is too complex, we make assumptions and build a simplified model of reality. Right?

Party A is the investor and party B is the firm receiving the investment. Party B needs to pay a (hopefully) awesome rate of return. Come on, I did lay this out and tried to keep it simple. Was it not simple enough?? I just found it amazing an investor this known had crap models on their side. You don’t need to go to the white board and sketch it out.

Maybe you should “Live. Laugh. Love” as your cute little signature reads. [idea]

Again, the problem I have observed with most models over many years doing this, and being flown around the world to provide this service on important deals; is that they suck. There is an attempt to make things fancy to dazzle the boss, but when someone who can think pokes around and questions the logic…they just don’t make sense. So to someone looking at aquire some useful skills, it’s an opportunity, if you can build models that make sense.

Thanks for offering your gibberish. You have no idea what you are talking about. Back in mom’s basement.

[Krisztina]

Hey, sorry to interrupt but can I ask you if someone has any input on Wall Street Training self study pack? I am wondering why does not anyone here ever mention it. Is it because its quality is lower or something?

[cleverCFA]

purealpha, don’t be an AF rookie and jump on Blake’s hand grenades. Just ignore and move on.

[capaldij]

@numi

@capaldij

@numi

Sign up for Breaking into Wall Street if you’re serious about learning how to build models the Wall Street way

I’m not so interested in the LBO models etc. I don’t stand a chance of getting any interviews within Investment Banking, nor am I really interested in working in one anyway.

It’s the asset management valuation models I am interested in. Does BIWS include these?

Yeah, Breaking into Wall Street has a bunch of operating models too, not just deal models. Of course, LBO and M&A models build off of operating models (i.e. standard three-statements, fully integrated). Look at the site and figure it out for yourself.

As others have mentioned, you need to learn by doing, not just by reading out of a book. That would be akin to watching some piano videos of Horowitz, Argerich, Rubinstein, and so forth on YouTube and then decide that you’re ready to become a concert pianist in two weeks. It makes no sense.

I asked someone the other day, “Do you know how to get to Carnegie Hall?” His response: “Practice.”

I completely agree with you here Numi, and I do intend to learn through actually doing this myself rather than watching a video.

I just wanted to know what others used as a starting point to help them get going.