Financial Analyst Requirements

List of Financial Analyst Requirements

Financial analyst requirements typically include a Bachelor’s degree, plus a professional designation like the FMVABecome a Certified Financial Modeling & Valuation Analyst (FMVA)®, or a Master’s degree like an MBA. Skills required usually include:

Evaluating investment opportunities and rates of returnInternal Rate of Return (IRR)The Internal Rate of Return (IRR) is the discount rate that makes the net present value (NPV) of a project zero. In other words, it is the expected compound annual rate of return that will be earned on a project or investment.

Analyzing financial data and company performance

Preparing research reports and building forecasts

Making recommendations to improve business operations

Modeling capital expendituresCapital ExpendituresCapital expenditures refer to funds that are used by a company for the purchase, improvement, or maintenance of long-term assets to improve (CapEx) and depreciation

Performing financial modeling and valuation work

Working with team members to prepare reports and forecasts

Financial Analyst Requirements

Analyst Certification FMVA® Program

Below is a break down of subject weightingsBecome a Certified Financial Modeling & Valuation Analyst (FMVA)® in the FMVA® financial analyst program. As you can see there is a heavy focus on financial modeling, finance, Excel, business valuation, budgeting/forecasting, PowerPoint presentations, accounting and business strategy.

Become a Certified Financial Modeling & Valuation Analyst (FMVA)®

A well rounded financial analyst possesses all of the above skills!

Additional Questions & Answers

CFI is the global institution behind the financial modeling and valuation analyst FMVA® DesignationFinancial Modeling CertificationFinancial Modeling Certification - earn your certificate as a Financial Modeling and Valuation Analyst (FMVA)® for careers in investment banking, FP&A,. CFI is on a mission to enable anyone to be a great financial analyst and have a great career path. In order to help you advance your career, CFI has compiled many resources to assist you along the path.

In order to become a great financial analyst, here are some more questions and answersKnowledgeCFI self-study guides are a great way to improve technical knowledge of finance, accounting, financial modeling, valuation, trading, economics, and more. for you to discover:

What is financial modeling?What is Financial ModelingFinancial modeling is performed in Excel to forecast a company's financial performance. Overview of what is financial modeling, how & why to build a model.
How do you build a DCF model?DCF Model Training Free GuideA DCF model is a specific type of financial model used to value a business. The model is simply a forecast of a company’s unlevered free cash flow
What is sensitivity analysis?What is Sensitivity Analysis?Sensitivity Analysis is a tool used in financial modeling to analyze how the different values for a set of independent variables affect a dependent variable
How do you value a business?Valuation MethodsWhen valuing a company as a going concern there are three main valuation methods used: DCF analysis, comparable companies, and precedent