Wall Street Prep

Modeling stock based compensation

Q: I was just told that it is common in the software industry to exclude stock-based compensation (SBC) expense from earnings per share (EPS), effectively treating it as a non-recurring item. I understand that stock based ... Read More

M&A Accounting in Simple English

Acquisition accounting has always been a challenge for analysts and associates.  I think it's partly because the presentation of purchase accounting (the method prescribed under US GAAP and IFRS for handling acquisitions) in financial ... Read More

Modeling effective vs marginal tax rates

A: Marginal tax rate refers to the rate that is applied to the last dollar of a company's taxable income, based on the statutory tax rate of the relevant jurisdiction, which is partly based ... Read More

Does Wall Street Prep provide financial modeling courses for overseas applicants?

Note: This article is outdated, as the Premium Package is now an online-only video training program. A: Thank you for your inquiry. The Premium Package comes as physical manuals, along with a CD containing ... Read More

Financial Modeling Techniques: Sensitivity Analysis ("What if" Analysis)

A financial model is a great way to assess the performance of a business on both a historical and projected basis. It provides a way for the analyst to organize a business’s operations and ... Read More

Financial Concepts: Deferred Taxes

I want to briefly focus on deferred taxes because it's a topic that pops up quite frequently in our public modeling and valuation seminars, as well as our corporate training. It turns out this is a topic that many ... Read More

Top 10 Investment Banking Interview Questions

With the start of a new academic year, we know that finance interviews are again at the forefront of many of your minds. This article is part of a series on the most frequently asked technical ... Read More

LBO Analysis on a Cocktail Napkin

As many of you know, we conduct LBO Modeling boot camps across the globe. We get into relatively sophisticated modeling techniques and teach practitioners how to model out various scenarios. But as former analysts ... Read More

Financial Modeling Techniques: Selecting Operating and Financing Scenarios

We would like to introduce you to an important concept in financial modeling: Scenario analysis. This key concept takes your financial model to the next level by allowing you the flexibility to quickly change ... Read More

Balance Sheet Projection Best Practices

In a finance and investment banking interview, candidates will almost certainly be asked questions that test their understanding of the relationship between the balance sheet income statement, and cash flow statement. The reason is ... Read More

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The Wall Street Prep Quicklesson Series

7 Free Financial Modeling Lessons

Get instant access to video lessons taught by experienced investment bankers. Learn financial statement modeling, DCF, M&A, LBO, Comps and Excel shortcuts.