The profession of financial analyst
Financial analysts monitor and study the value of companies in-depth.
An expert with figures, with an ability to analyze financial reports and make economic diagnoses of companies (sector, market, competition), an actuary is able to issue advice on companies analyzed and advise stock market operators as well as their clients.
Clients will know how to invest by choosing the most beneficial investments with regard to their expectations. Becoming a financial analyst requires five years of rigorous post-secondary education in Finance or Economics.
Roles and missions of a financial analyst
A financial analyst collects and recovers information from different sources (official publications, financial reports, internet, written press, market studies) to check the accuracy and advise their clients.
A financial analyst is employed by finance consultancies, banking institutions, insurance companies, asset management companies, investment funds, business banks, Finance departments in large companies or governments.
Daily
tasks
Below are some of the daily tasks of a financial analyst:
- Collecting financial data
- Analyzing and monitoring the financial situation of large companies
- Identifying the financial impacts of certain strategic decisions or legal developments
- Identifying investment opportunities
- Providing detailed recommendations on a company or a market
- Preparing and presenting recommendations for private or public investors
Salaries and career development
Depending on the geographic location, experience and status (employed or freelance), a financial analyst’s salary can vary widely. The median gross annual salary of a university graduate financial analyst is €61,157.
There are wide salary variations depending on their results (performance bonuses and profit-sharing bonuses), specialty and level of responsibility.
The early years of a financial analyst’s career are a time for them to gain experience and confirm their theoretical knowledge in the field.
They will then have opportunities to move to management control, audit, management of a team of financial analysts, or to financial engineering and trading floors. Certain financial analysts work independently as freelance operators. They may also specialize in a specific business sector such as aeronautics or luxury products.
Skills
required
- Excellent knowledge of finance to read and interpret data and financial reports
- Excellent knowledge of the main national, foreign and international accounting principles
- Ability to analyze financial data
- Good communication skills for reporting on analyses
- Good stress management
- Good general knowledge
- Fluent English
Which studies to become a financial analyst?
Becoming a financial analyst requires theoretical knowledge in various fields including law, economics, accounting and finance. Companies and consulting firms require five years of post-secondary education.
Master’s programs in Finance and Economics give students the technical skills, management abilities and initial professional experiences (internship, gap year) needed to become a financial analyst.
Training program to become a financial analyst at Dauphine-PSL: Master's degree in Finance and Master's degree in Economics and Finance
Université Paris Dauphine – PSL offers a Master’s degree in Finance and a Master's degree in Economics and Finance which are particularly well-suited for students wishing to become a financial analyst. An excellent training in financial techniques in one of the university’s top departments:
- A general study program with a strong specialization in the 2nd year, through the many academic paths available in France and abroad
- Immersion in the business world with prestigious partners
- A variety of professional opportunities, in all careers in finance
- An opportunity to develop an international career
- Excellent professional integration for recent graduates