Most and least modeling-intensive sectors

Are certain sectors or teams in ER generally more "model-heavy" than others? For example, is it fair to say you will spend a lot more hours opining over a DCF in pharma than, say, consumer goods teams?

Any information would be appreciated. As someone looking to enter the field, I absolutely love writing but wouldn't consider myself an expert in modeling.

7 Comments
 

Where did I say I hate it? I'm in undergrad and right now I'm more comfortable with writing than modeling, so I'd rather go somewhere that provides more of a learning curve.

Hatred and lack of exposure are completely different, and I'm not too sure where your anger's coming from here.

 
Professor Plum

I suspect that sectors with fewer inputs have less modeling. So something like biotech, which may have companies that dont have profit might not be a difficult model, RE on the other hand has lots of inputs.

Had to bump this because it is generally wrong.

Biotech has its fair share of inputs and its model's are far from simple. Pipeline, patent's, cannibalization from generic's, tax credits etc. are all inputs that are not necessarily straight forward

I think most analyst would say that larger tech and retail firms are generally the easiest to model. Or said differently, have the most straight forward inputs.

"Sounds to me like you guys a couple of bookies."
 
Best Response
BillyRay05 Professor Plum:

I suspect that sectors with fewer inputs have less modeling. So something like biotech, which may have companies that dont have profit might not be a difficult model, RE on the other hand has lots of inputs.

Had to bump this because it is generally wrong.

Biotech has its fair share of inputs and its model's are far from simple. Pipeline, patent's, cannibalization from generic's, tax credits etc. are all inputs that are not necessarily straight forward

I think most analyst would say that larger tech and retail firms are generally the easiest to model. Or said differently, have the most straight forward inputs.

Largely this. Consumer stocks in general. Tech is tough for different reasons other than modelling.

 

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