Financial Modeling For Equity Research: A Step-by-Step Guide to Earnings Modeling by John Moschella, CFA CPA

Financial Modeling For Equity Research: A Step-by-Step Guide to Earnings Modeling by John Moschella, CFA CPA

Description

Equity research is an overall daunting task that requires a deep understanding of the logistics that leaves little wiggle room for any mistakes. John Moschella’s “Financial Modeling for Equity Research” provides the roadmap to the subject matter for newcomers on the field. Presented in a cohesive, step-by-step format Moschella expounds on how to create appropriate finance models efficiently akin to those used in banks and financial firms. The first few chapters demonstrate the creation of fundamental models while the others introduce the more complex ones involving how to link financial statements, calibration, and how to incorporate macroeconomic variables. “Financial Modeling for Equity Research” is considered a highly-recommended book for anyone in the field or seeking to understand how equity research works. 

Financial Modeling For Equity Research: A Step-by-Step Guide to Earnings Modeling by John Moschella, CFA CPA

About the Author

John has more than a decade of experience analyzing companies in various capacities. After earning a BSBA in Finance, MS in Accounting and MBA from Northeastern University, he began his professional career at PricewaterhouseCoopers (PwC) in New York as an Assurance Associate in the Financial Services practice. He also participated in a rotational assignment in the Financial Service Research Institute at PwC, where he studied bank mergers during the financial crisis.

After PwC, John spent five years at UBS Investment Bank, where he worked first as a Capital Specialist, and then as an Equity Research Associate. In his research role, he maintained earnings models for companies in the Semiconductor and Semiconductor Equipment Industries, contributed to research reports, and participated in investor conferences.

John moved to General Electric Capital Corp in early 2014 as a Lead Risk Analyst, where he built regression models to predict asset losses based on various macroeconomic scenarios. After the sale of the majority of GE Capital’s assets, John started a consulting firm that provides capital planning support to investment banks, in addition to running 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 4 
    • Converting to a Tier 1 Earnings Model
  • Chapter 5 
    • Model Calibration & Forecasting
  • Chapter 6 
    • The DCF 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