ER Interview with 3-hour Writing and Excel Model Test
I read several posts about what to expect but not with much clarity; moreover, most of the information was quite old.
I am reaching out to the WSO community to see if anyone can provide insight as to what one may expect or... if someone has an example of an ER model + Writing report to share with me that they had to perform during an interview. I just need to see one example to have a good idea of what to expect.
I read earlier posts regarding the possibility of being given a half-filled model template to fill out while reading a recent earnings press release; thereafter, writing up a ER report, which I do have examples of those.
For your upcoming Equity Research (ER) interview that includes a 3-hour writing and Excel model test, it's crucial to prepare effectively to showcase your analytical and writing skills. Based on the most helpful WSO content, here's what you need to know:
Understanding Financial Statements: Ensure you're comfortable with the financial statements. You might be given an earnings press release and asked to update a model based on this new information. Familiarize yourself with how changes in the income statement, balance sheet, and cash flow statement affect each other.
Modeling Test: Often, the modeling test involves updating an existing model with new data from an earnings release. You should be prepared to quickly input this data accurately. The model might be partially filled, and you'll need to complete it, focusing on key metrics like revenue growth, margins, and earnings per share. Practice with different types of financial models, such as DCF, LBO, and three-statement models, to ensure you're well-prepared.
Writing Test: The writing component usually requires you to write an equity research report based on the updated model. This might include a summary of the company's earnings release, analysis of the financial results, and your investment recommendation (Buy, Hold, Sell). Your report should be concise, well-structured, and clear. It's beneficial to include an investment thesis, key financial data, and a valuation section. Reviewing examples of ER reports can be incredibly helpful to understand the format and level of detail expected.
Preparation Resources: Utilize the WSO Financial Modeling Resources, including templates and Excel resources, to practice your modeling skills. Additionally, the WSO Company Database can provide valuable insights into various companies that might be relevant for your test.
Showcase Critical Thinking: Beyond technical skills, demonstrate your ability to think critically about the company's performance and future prospects. Highlight any unique insights or perspectives you have in your report, as this can set you apart from other candidates.
Remember, the key to success in an ER interview is not just showing that you can do the work, but that you can think like an analyst. Practice as much as possible, review existing ER reports for structure and content, and ensure your modeling skills are sharp. Good luck with your interview!
Sources: Equity Research writing test+modeling test next Tuesday, seeking for advice, 3 Key Tips for Getting an ER Interview, 3 Key Tips for Getting an ER Interview, Modeling Test - Quarterly
I dont think you will find someone willing to share their work.
You can try https://richardtoad.substack.com/p/articles. For modeling, buy a WSP modeling package. It is a bit more IB oriented in terms of time range (annual vs quarter), but a minor detail. That shit is invaluable, best investment I’ve made in a long time. Plus, it is lifetime access if I am not mistaken, so if you forget how to do stuff, you can always re-do them whenever
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