ER modeling Test - Modeling template?
I was wondering if anyone had an ER modeling template they could send me. I have a few interviews lined up and wanted the extra practice.
Thank you.
I was wondering if anyone had an ER modeling template they could send me. I have a few interviews lined up and wanted the extra practice.
Thank you.
+81 | Q&A - Buyside Equity Research Analyst/PM | 29 | 5d | |
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http://www.exinfm.com/free_spreadsheets.html
www.focusinvestor.com/DiscountedCashFlows.xls
http://www.independent-stock-investing.com/Discounted-Cash-Flow.html
http://www.macabacus.com/valuation/enterprise-value (in the 'Topics' tab drop down menu check 'Valuation' and there is a DCF template in the LBO tab as well .. i know it will be different due to its purpose being entirely different .. but you can modify it to suit your needs)
I have a model but it is very very raw in its formatting and manner of valuation (pathetic at best).. plus the assumptions are weak at best for example the assumptions for debt structure were not made in any detail just used a horizontal analysis and vertical analysis in conjunction with the SGR (sustainable growth rate) to forecast the debt structure.. the revenue projections were based upon inflation and population growth ... no independent industry analysis/data was available since data collection in my country is pretty much non existent for most manufacturing concerns' products and consumer consumption patterns
I do not remember clearly but i think the valuation's DCF model was made into a 3 stage model with an exponential decay for the growth rate but there was a problem with the calculation of the WACC because the Required Market Return was not sourced nor was it calculated... a team member just put it in there but when I asked the source or the calculation method there was no answer (so yes it was a mess) and the cost of debt was not calculated properly (i think so - can't remember clearly)... plus the company we were analyzing (as students) just had its IPO done, so we could not use p/e multiples for its valuation nor could we use the peer group multiples.. since the other businesses within the industry were substantially different and the EV/EBITDA multiple was not used either, cannot remember the reason but I think it had something to do with the fact that the Parent company was going to assume the debt ...however if you still want that crappy model I do not mind giving it to you .. i also have the PPT and the report if you want em
some extra advice and links for interview questions:-
http://blogs.cfainstitute.org/investor/2013/09/12/advice-on-how-to-become-a-research-analyst/
webuser.bus.umich.edu/.../Equity_Research_Interview_Questions.doc
also the modelling is a small part of the ER job .. some of the interview questions in the links below will help http://www.lbsimc.org/content/index_5_2145523323.pdf ---- (i have summarized and categorized the questions in this link to make them more suitable for ER .. let me know if you want them)
http://myfinanceinterview.com/category/equity-research-interview-questions/
webuser.bus.umich.edu/Organizations/.../Equity_Research_Ins_Outs.ppt
this is an excellent description of equity research //www.wallstreetoasis.com/forums/here-is-how-equity-research-works
questions/ideas just the top of my head
the reasoning behind the:- 1. Valuation method you like or don't 2. Industry/sector you prefer 3. Your stock pick 4. Investment philosophy/style if you have one 5. Global stock picks
understanding how a company works and why should you invest questions you would ask during a site visit your enthusiasm for investing and stocks in particular why the sell side
add your personal view about how to analyze and valuate companies
do read a lot on valuation
there are a lot of questions in the links above check them if you want to
Qureshi thank you for all your help, much appreciated.
Wow... strong reply, Qureshi
Damn Qureshi - SB for you
@kfactor824
@vik2000
@woodywoodford
i am honored and humbled
http://www.wallstreetoasis.com/forums/equity-research-3hr-modeling-exam
What fantastic repy Qureshi ! Thank you so much!
glad i could help
ER Modeling Test - Interview (Originally Posted: 10/30/2014)
Hello, I am interviewing for an ER position and I have been invited to the second round of the process, which is a modeling test. My understanding based on googling is that this commonly involves updating a model with a press release, and writing a note. I was wondering if anyone could point me to where I would be able to find examples for the model as well as the PR note....I have BIWS models, but I don't know if they are as relevant to this.
Bump...anyone know where I can find a model to practice a model update from an earnings release?
there is no actual "practice model" people could send you becuase each ER firm has their own proprietary built model with different types of drivers and calculations, formulas, links, etc.... Here is what I will tell you though, review different types of press releases (the GAAP and non-gaap numbers on those press releases). Understand everyone on the income statement and how to calculate the FCF using the press release because those are all things that would be involved in a post press release type email to clients or into the research note on earnings. Make sure you are very comfortable with a financial model and how the income statement works (very basic) but probably going to be the main determinant on if you pass. I actually had to do this same exam and I aced it.. the hardest part about this entire task is you dont know 1) the model you're going to get (so you'll be kinda shaky about th entire thing), and 2) where to get the data to fill out the entire model... remember, sometimes you need the Press Release, the earnings presentation and other data points to complete/update the entire model... so make sure you know where to get all those things before your exam.
Is it possible that the press release will not give enough information to fill out the most recent period on the three-statement model? As in, you would only get enough information to fill out the income statement but not the entirety of the balance sheet / cash flow statement? What to do in this situation? Or will a 10q/10k most likely be provided? Really appreciate the advice.
Is it possible that the press release will not give enough information to fill out the most recent period on the three-statement model? As in, you would only get enough information to fill out the income statement but not the entirety of the balance sheet / cash flow statement? What to do in this situation? Or will a 10q/10k most likely be provided? Really appreciate the advice.
PM me i'll send you a one I built
HI cvslane, do you still have the one you built?
I would like a copy too if its not too much trouble.
ER model update test (Originally Posted: 03/19/2015)
Was looking for some information as to what type of things you can be asked to do in this kind of a test.
Looking at your wording, chances are they'll flip you an existing model and ask you to update the numbers using a recent quarterly earnings release
adding to @quattroblanc 's updating existing model using a quarterly earnings release, also updating forecast of next quarter and full FY, as well as writing a list of questions to company's management in terms of new guidence, new development, & corporate strategy etc.
LNatsume, do you happen to have a model I could use to practice updating? I have a model update/write up test on Thursday and would love to practice beforehand.
ER modeling test - Quarterly projections? (Originally Posted: 01/10/2011)
wrong forum i know-
ER analyst asked for a model, i have a pretty good one but it's.
A. not in his industry. B. not projected quarterly, and I believe ER analysts publish quarterly projections?
send it or try and do another one this week? bump?
i'd like to hear this as well, i'd think if you chose something in his industry, he would be able to grill you. Don't really know about #2.
ER analyst research I have seen is usually quarterly for a year or two and then annual for a year or two... However, the underlying model may be quarterly throughout... not sure.
ER interview, modeling test? (Originally Posted: 11/09/2009)
I was working as an Equity Research Associate for 7 months before I was laid off. I was exposed to some modeling, such as knowing how the 3 financial statements are related (but never had to 'balance' one; I wasn't there long enough and we had another person on the team who specialized in modeling).
I have an interview coming up and they have said there will be a 3-hour test (most of it will be modeling I imagine and maybe some writing test).
Just wondering what kind of modeling will it be? and that could take 3 hours? I've done some research and some people on the board have had to model LBOs, which I don't know how.
Will it be terribly important to 'balance' a model? Sorry this might sound silly....
LBOs are really only modeled in private equity. They may give you several financial statements and ask that you integrate them into an existing model. I highly doubt you'd be building anything from scratch.
if you spent 7 months as an associate.
I had to take a 3 hour modeling test for my current position so I'm sure yours will be similar. They will probably give you a current model and a company's press release, and you will be responsible for keying in the results, getting the model to balance, and then adjust drivers in future periods based on past results and commentary from the press release.
Should be cake if you've done anything like this before. If not I would spend some time practicing and reacquainting yourself with how the financial statements interact.
The test was exactly that....
Hi ERgirl,
What else was asked on the test ? Were there any financial/accounting questions ?
nothing else was asked on the test....
the modeling test WAS asking financial/accounting questions. I mean you had to have an understanding of financial statements and how they correlate in order to build/forecast a model. It wasn't hard but it was time consuming.
Good luck for your final round.
ER modeling test - Contacted by a firm about a modeling test? (Originally Posted: 11/08/2013)
I was contacted today by a firm about taking their modeling test. I was wondering since it is time limited, what to expect? Should I include debt schedule, equity investments, depreciation schedule, tax schedule, shares outstanding schedule and credit metrics or the models are less intense?
Thanks
Cover the important bits and then go into detail. Won't mean shit if you aint got an actual working model
ER Modelling Test Breakdown? (Originally Posted: 04/06/2015)
Monkeys,
What types of ER tests are commonly used? There's seems to be some scattered information here and there on what's out there. I hope to gather enough information to have a complete and detailed idea of the tests involved, and the correct steps in completing the assessments.
In the past I've had:
I've heard that there are also: 3. Updating a model: Unfortunately, I did not get the chance to do this in my internship. Is this simply looking at the press release figures (quarter's rev, cogs, etc) and putting the numbers manually into a pre-existing model? I'd assume some forecast assumptions, such as next quarter's revenue growth rate might be adjusted as well. What other steps are involved?
I would greatly appreciate your input. Let me know if I missed any other tests.
On 3, you'd probably have to update the model for the latest quarter and make the necessary adjustments to get to their adjusted EPS number. Also, you'd probably have to forecast the rest of the year, as well as the out years, and every other line item in addition to revenue. See http://www.treetis.com/blog/2015/3/6/modeling-home-depot for my blog post on how to forecast some of those things. Hopefully it wouldn't be too complicated of a model.
I don't think many places would have you build out a model from scratch in 3 hours, but I suppose it's not out of the realm of possibility. You would just need to practice building out simple models, and you'll get the hang of it. It might take some time at first, but after awhile it's not too bad because many of the line items have similar drivers.
I was also part of a team that gave out an excel file with industry-specific data to interview applicants. They had to update it with the latest data and write a research report on the results. Fairly straight forward but many applicants struggled to describe the data accurately. They missed out on a couple things: 1) the most important thing was that there were certain trends in the data that they failed to notice. In addition to writing about what the absolute number was, you always have to kind of step back from the factual reporting of it, and also talk a little bit about the significance of it and the context of it. 2) there's a certain language/tone to ER writing that people did not write in. Not a huge deal since this is something you can pick up on as you read and write more ER reports, but it's something that would stand out if you could get it right.
I’m not working in ER, but when I interviewed for ER positions, I had these two kinds of tests:
ER Model Test (Originally Posted: 12/18/2016)
re: ER interview insight
tl;dr: Cramming for jr. ER modelling test with zero excel? Best path, how much time?
I need to cram for a modelling test with ER in late January - and know Zero Excel. I know the IB technicals/concepts cold, and have final rounds at top BBs. But zero Excel at all, and I want ER.
It's with a REIT team in CA that's looking to build their MM bank in Cali (a name you know). Had phone screen with HR, next is a phone interview with team member, then modelling test, then meet with the team.)
Havn't done any models since ugrad 5 years ago. Any insight on what the ER jr. position's modelling test might be? Also, how would you recommend I learn modelling enough to pass it? Cram for a weekend with the BIWS package or something? There's LBO modelling, 3 statement operating models, M&A, etc...and I have no idea which is a best use of time to pass the ER test.
Appreciate any color, and have a great week. Apologies for sounding nervous, just a bit concerned.
I did a modeling test for ER recently, they gave a model with highlighted cells to populate the quarterly earning results into the spreadsheet using the company's press release. And then link the formulas.
You said you are solid with IB technical, then I assume you know how three statements link together. Make sure you know to model both on annual and quarterly basis. Why not just pick a simple company (preferably one that does not do business in multiple industries, so avoid companies like GE, P&G, they are too big anyways) and build a three-statement model, take out one quarter of data, and then update it using the quarterly press release.
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