Why Books Still Matter for Financial Modeling Skills

Even in the age of video tutorials, interactive courses, and YouTube walkthroughs, books retain a unique value. They let you dig deep, revisit chapters, study theory at your own pace, and often cover details that move faster-paced media leave out. If you want to build solid financial modeling chops—especially in Excel—a good book can give you both the “why” and the “how.”

CFI has put together a list of eight excellent books that cover everything from basic Excel modeling to more advanced topics like valuation, risk analysis, and investment banking. Whether you're new to modeling or aiming to refine your expertise, there’s something here for you.

Top Picks for Financial Modeling Books

Below are eight books that CFI recommends, along with what makes each stand out — who’ll get the most from them and why.

Mastering Financial Modelling in Microsoft Excel — Alastair Day

• What it teaches: Strong structure for spreadsheet design, how to clean up and test models, key Excel functions, and how to avoid costly errors.
• Best for: Beginners to intermediate users who want to build clean, robust models.

Financial Modeling in Practice — Michael Rees

• What it teaches: How to structure models effectively, link the three financial statements, apply risk-simulation tools, and use some VBA.
• Best for: Modelers who already know the basics and want to incorporate risk analysis and stronger design principles.

Best Practices for Equity Research Analysis — James Valentine

• What it teaches: Valuation techniques, due diligence, behavioral finance, clear communication, and practical Excel applications.
• Best for: Anyone entering equity research or those who need to analyze investment opportunities.

Financial Analysis and Modeling using Excel and VBA — Chandan Sengupta

• What it teaches: Hands-on Excel and VBA, statistical analysis, what-if scenarios, and iterative modeling techniques.
• Best for: Professionals who want to automate modeling tasks or develop advanced Excel/VBA skills.

Financial Modeling — Simon Benninga

• What it teaches: A broad reference with real-world examples, covering investments, derivatives, data sourcing, and solving finance problems in Excel.
• Best for: Learners who want a comprehensive resource and are comfortable with complex material.

A Practical Guide to Investment Banking and Private Equity — Paul Pignataro

• What it teaches: Valuation in investment banking and private equity, M&A processes, and real case studies.
• Best for: Aspiring investment bankers, private equity analysts, and finance professionals involved in deals.

Financial Modeling for Business Owners and Entrepreneurs — Tom Y. Sawyer

• What it teaches: How to turn business plans into financial models, test different scenarios, and assess assumptions with simpler models.
• Best for: Entrepreneurs, small business owners, and startup CFOs.

Building Financial Models — John Tjia

• What it teaches: Projection models, sensitivity analyses, and how to make models dynamic and easy to adjust, while also focusing on clarity in presentation.
• Best for: Analysts and FP&A professionals who need models that are practical, adaptable, and clear to stakeholders.

How to Pick the Right Book (For You)

Here are a few tips to decide which book(s) will help you most:

1. Start with your current level
   If you’re brand new to modeling, begin with simpler, more structured books. Later you can move into ones with risk modeling, VBA, etc.
2. Match with your goals
   • Want to build models for startups or planning? → Sawyer or Day.
   • Dealing with corporate finance, valuation, investment banking? → Pignataro, Benninga, Valentine.
   • Focused on automating workflows or running analyses repeatedly? → Sengupta, Rees.
3. Look at how current the book is
   Books that reference modern Excel features or up-to-date financial practices (forecasting, sensitivity, dynamic assumptions) give you more practical value.
4. Practical vs theoretical balance
   If your role requires presenting to stakeholders, you’ll want books that emphasize clarity and presentation (John Tjia, Sawyer). If you're doing backend work (model building, risk, simulations), more technical books will suit you.
5. Supplement your learning
   Even with the best books, it helps to build your own models as you go. Try replicating examples, then tweaking them. Use video series or online courses to see how others build models step by step.

Final Thoughts

If you’re serious about mastering financial modeling, these books are more than just reading material—they’re tools. They’ll teach you not just what to build, but how to think about models: structure, checks and balances, risks, presentation.

Pick one or two that align with your current needs. Read actively—try the exercises, build your own models, test your assumptions. Over time, you’ll notice your models becoming cleaner, faster to build, more adaptable. And that’s where you really level up.