Have a case study on a performing credit shop, how should I tackle?
Case study round for a liquid credit shop, will be given a name and decide on buy/sell. Wonder how should I approach it?
I am thinking the below — apparently will have the company/industry overview, key credit highlights/investment rationale all those stuffs but wondering if I am missing anything too
- Three statement model and projection (do I really need all three statements?)
- FCF paydown
Debt comparables (trading, cap structure?)
you dont need to do a full 3 statement model but if you have the time might as well. rel val would be nice, but if you dont have access to bloomberg i dont think youd be expected to have that. have a view on valuation, take a group of the best public comps and show ev/ebitda, leverage, other credit metrics and be able to compare/contrast them.
Thank you — for valuation, would you recommend doing a DCF + a list of comparables (more so finding the EV rather than the stock price given it’s a credit case study)?
For rel val, I guess comparing the credit metrics against peers would be helpful too?
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