Financial Modeling For Equity Research: A Step-by-Step Guide to Earnings Modeling

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The book, “Financial Modeling For Equity Research: A Step-by-Step Guide to Earnings Modeling” is a comprehensive guide on how to go about creating a financial model.

The book comes with Excel Files that one can either use as an example for creating their own or straight up just take these as templates. Below are the Excel Templates that the reader would be receiving should they purchase the book:

The Excel templates included with this book include: 

  • File 1 – Blank Model Template: Use this template to create your own earnings model. 
  • File 2 – Apple Inc Back of the Envelope Model: This beginner model features a basic Income Statement projection and is perfect for those who have not had prior modeling experience.
  • File 3 – Apple Inc Tier 2 Earnings Model: This version of the model is more sophisticated and includes a breakdown of the company’s products, which is used to project future earnings.
  • File 4 – Apple Inc Tier 1 Earnings Model: The Tier 1 model is geared toward advanced analysts and includes financial statement integration, as well as a discounted cash flow valuation.
  • File 5 – Equity Risk Premium (ERP) Model: Using this simple model you can quickly estimate the market ERP based on volatility, changes in interest rates, and market return expectations. You can then derive a discount rate using your ERP estimate, and the Capital Asset Pricing Model (CAPM).
  • File 6 – Apple Inc Beta

The book is able to effectively discuss the fundamentals of modeling for beginners in a language that is easy to understand while retaining its professional tone. And as for the more experienced and tenured in the industry, more complex topics are up for them for discovery. Indeed, with the book, “Financial Modeling For Equity Research: A Step-by-Step Guide to Earnings Modeling,” there is something for everyone.