Best 7 Books on Financial Modelling Using Excel

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Where do financial modelers work?

The world of finance can be a very complex place that at times, it is quite tricky to navigate. For instance, millions of financial transactions are processed daily. The world of stocks, investments, portfolios, and equities is dynamic and it involves vast quantities of data.

Have you ever wondered how the behavior of stocks in certain niche industries are forecasted? Or the direction the stock market will take? Is it going to be a bull market in an era where prices are rising for a number of reasons but there is general optimism? Or is it going to be a bear market period, where securities are characterized by falling prices and pessimism abounds?

How do statisticians, financial analysts, economists, accountants, and others handle this complex, dynamic environment and are able to make accurate predictions and forecasts concerning certain patterns and trends?

Well, the answer to that question is that they create models. Financial modeling involves analyzing a certain financial dataset and making a representation of that dataset. It is about trying to explain the data patterns/trends through a simplified model that reduces the complexity of the real-world situation while taking into account all the variables.

Usually, the model is inclusive of calculations and subscribes to a certain financial theory, depending on the model at hand. Different models are based on different financial theories. Besides other functions, the purpose of the model is to make accurate predictions and forecasts, taking into account the variables that are involved. Financial models are utilized in many different industries and for diverse purposes.

Excel – The Most Used Tool for Financial Modelers

Excel is one of the most useful tools for a financial analyst and allows one to create financial and analytical models. Excel is fairly ubiquitous throughout the finance world, so you can be assured that if you send your spreadsheets to a Wall Street banker or an economics professor at your university, they’ll be able to comprehend your data.

Are you ready to dive into the world of using Excel for financial modeling? Look no further. Here at ExcelDemy, we have put together a list of books to assist you with navigating through the world of Excel and financial modeling.