Investment Banking Manual

Download CFI's free investment banking book

Written by Tim Vipond

Investment Banking Manual

Covering accounting fundamentals, valuation, financial modeling, & Excel skills, this 400+ page guide to investment banking is a must-have for new analysts & associates.

Welcome to the official investment banking eBook from the Corporate Finance Institute. In this 466-page analyst manual, we walk through all the important skills and the body of knowledge required for a new hire at a bank. From accounting fundamentals to valuation, financial modeling, and Excel skills, this eBook cover all the major topics in investment banking for a new analyst or associate. We hope you find this book useful in reaching your future goals.

CFI’s investment banking book is divided into three chapters: accounting, valuation, and financial modeling. Below is a detailed breakdown of what’s included in each chapter.

Investment Banking Book - Cover Page

Investment Banking Book – Accounting (Chapter 1)

The accounting section of CFI’s investment banking book includes:

Accounting and analysis fundamentals

Accounting framework
Balance sheet issues
Income statement issues
Cash flow statements

Accounting and analysis for mergers and acquisitions

Acquisition accounting
Accounting for associates and joint ventures
Considerations for investment banking
Comprehensive examples
New M&A accounting rules

Valuation (Chapter 2)

The investment banking book includes:

Discounted cash flow techniques

Discounting fundamentals
Estimating free cash flow for valuation purposes
The key value drivers of cash flow
Calculating the terminal value
Putting it all together – DCF with terminal value calculation

Cost of capital

An introduction to risk
Capital asset pricing model (CAPM)
The Cost of Debt and WACC

Comparable company analysis

Why do we do comps?
Comparable universe
Sources of information
From Equity Value to Enterprise Value
Which multiple?
Using comps
Special Situations
Keys to success

Precedent transaction analysis

Introduction
Mechanics
Valuing the target
Control premia
Problems with precedent transactions

Financial Modeling (Chapter 3)

The financial modeling section of the investment banking book includes:

Best practices financial modeling

Introduction
Introducing the Ribbon
Quick Access Toolbar
Page Layout menu
View menu
Model set up
Model structure
Referencing
Formatting
IF and some other logical functions
Data retrieval – the LOOKUP school
Volatile functions
Consolidating data
Arrays
Dates
Switches
Sensitivity
Validating data
Pivot tables
Model completion
Charts
Historic financials
Forecast financials
Debt modeling
Formatting Continued
Formulas
Names
Data functionality
Auditing and error detection tools
Auditing a model – a process

Appendix

Excel tricks
Excel function keys
Other shortcuts

Book Review

Below is one of many reviews CFI received from satisfied readers:

“The investment banking manual book covers just about everything you need to know to jump in as a new analyst or associate. For anyone who wants a crash course or refresher on a wide body of knowledge, this is the ebook for you.”

Download Investment Banking Manual

Additional Resources

This Investment Banking Analyst book is a great way to jumpstart your banking knowledge. Whether you are going for an interview, or just started on the job, this book is a great way to get a lot of information in one highly organized format. And the best part is…it’s 100% free!

To learn more and advance your career, check out these additional CFI resources: