Summary
What does a financial analyst do?
An advisory role
The financial analyst is above all an adviser.
Thanks to his excellent knowledge of the market, he knows how to anticipate the evolution of an economic sector. It analyzes a company’s growth prospects, studies its management methods and assesses its financial health.
It formulates recommendations on which decision makers rely to guide their development strategy.
The study of stock market values
The financial analyst is also present in the trading rooms. It tracks the stock market in real time and helps investors choose stocks.
Its reports recommend a sale, a purchase or inaction.
What qualities are needed?
Rigor and expertise
The financial analyst loves numbers. He is rigorous, autonomous and organized.
He has a solid knowledge of economic and financial systems. He has a spirit of synthesis.
Monitoring and responsiveness
The financial analyst knows how to manage stress. He is in a dynamic of anticipation. Always on standby, it adapts to market fluctuations at a steady pace.
Curiosity and investigation
To be able to issue recommendations on a company, the financial analyst meets its managers, visits the sites, consults all the activity figures and the annual reports.
Note: the financial analyst travels to companies, especially abroad. Fluency in English is a minimum, knowledge of other languages an asset.
Salaries and career prospects
Interesting salaries
The beginner’s salary is already comfortable: from €30,000 to €45,000 annually. With time and experience, experienced analysts earn around €120,000 minimum per year.
2 possible environments
The financial analyst can work in a research office or in trading rooms.
A necessary specialization
The financial analyst specializes according to the sector of activity: automotive, energy, food… or according to the type of service: stock market investment advice, support in business development, management assistance…
Training to become a financial analyst
Bac +5 minimum
Financial analysis requires solid theoretical foundations in several subjects: law, economics, marketing and finance. To acquire such expertise, the bac + 5 level is a minimum.
Grandes écoles or university
The major business or engineering schools provide training for the profession of financial analyst. Institutes of political studies as well.
In universities, the following degrees are other possible routes:
- master’s degree in “economic analysis”;
- master’s degree in “management, option finance”;
- master’s degree in “business administration”;
- master’s degree in “corporate finance and financial market practice”.
Note: the 2-year training of the French Society of Financial Analysts (SFAF) is often requested by employers.
Recommended internship
Field experience is highly recommended. Banks, insurance companies and consulting firms regularly recruit trainee financial analysts.
Learn more?
Contact the French Society of Financial Analysts (SFAF) on 01 56 43 43 10.