I'm interning in an ER firm, and while I've learned a lot about the industry, generally about how companies are analyzed, etc . . I think IB firms would expect me to have more actual modeling experience.
What do you think of what I've been doing?
- Finding financials from 10-Ks/Qs and inputting them into models, filling in segment information, setting up basic formulas
- Researching background information on the industry, companies, or competitors companies etc . . to be used in analysis
- Writing simpler sections of the research reports: company risks, summaries, finding pictures or graphs to put in
So basically, I do a good amount of the prep work, but not any direct modeling or creating my own analysis. How do I talk about this in an interview?
Looks pretty good. Sounds like what associates in ER typically do.
Equity research models are rarely that complicated (credit models on the other hand...). Do you understand the models?
Like the other poster said, associates don't really make up shit on the fly. There's a general template and their job is largely finding the right numbers and fitting them into that template. 10-Ks/10-Qs and FactSet are your best friends.
The only line item you may not have a good understanding of is revenue. I've seen a multitude of approaches to modeling revenue and some of them can get quite intricate.
I've always been a huge stickler for real, thorough analysis of a firm. The only way that can be done is by looking at the qualitative aspects of a firm's operations and the competitive dynamics of the industries it participates in. You appear to be doing a lot of research to this end, which may give you an in-depth knowledge of a particular industry that you could then leverage to get into a specific sector coverage team full time.
I understand the models generally - what they're tracking, what the purpose of certain line items are, but don't understand how future estimates are calculated exactly.
@Take_It_To_The_Bank - The analyst I'm working for has a very similar philosophy, so that is a lot of what I'm learning/doing. I guess I'm getting more qualitative than quantitative experience
Ballpark for what firm you're at? Or is it a no name boutique
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