I work in business valuation. The majority of directors/MDs at my firm are CFAs. My understanding is that the cert is only partially related to valuation and mostly relates to asset management. My question is why do they all have it? Just for the prestige? I’ll be talking with my direct reports about it soon but wanted to get external opinions too. What are everyone’s thoughts?

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My experience with valuation folk is they love flaunting qualifications wherever they can. Definitely the kind who out post-nominals in their LinkedIn name.

In fairness, It’s relevant for knowing about forecasting and certain cash flow related modeling I would think. Not in valuations, but I see a fairly strong link there.

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I think it could be more than prestige. I think it provides credibility, and recognition that you put in dedication to the field. It opens up networking opportunities you might not have had before. Only because it is a standard certification that lots of people in the community recognize. Not because it is prestigious, but because of the rigor.

Hi - i completed 2 levels of the CFA and can say both those were very valuation heavy due to topics such as Economics, Corporate Finance, Accounting (especially understanding how to convert accrual financial statements to cash basis), Equity and Bond valuation…level 3 is more for portfolio management/investing in my opinion. Hope this helps…

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The majority of CFA’s work in call centers in India. It’s just a bunch of letters next to a name that tell people you passed 3 difficult tests. It doesn’t mean anything really.

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59 percent of CFA candidates were from the Asia Pacific region

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