What is an equity analysis? How do you write one?
Hello, I somehow passed the phone interview (largely technical/industry-related questions) and now for the next step, I am tasked with submitting an equity analysis on certain companies. The companies are public.
This is someone who has zerooooo finance knowledge and I actually also withdrew from ECON 100 in my freshman year (no kidding). So, how should I go about doing this and what are some resources I can use as guidelines? Apparently, during the interview I was informed that my lack of finance knowledge is not a big disadvantage. They are looking for someone with subject matter expertise.
lol look up ER reports.
http://equity-research.com/reports/
a few examples here, look under 'sell side notes'. these reports are quite lengthy and I assume you are not requested to produce a similar one, but these will give you an idea on what to think of
Since true ER reports are tough to get, check out valueinvestorsclub.com and seekingalpha to at least get an idea of what an investor may look for. Read as many different articles as you can covering stocks in your area of expertise.
Not tough at all to get in all honesty. OP can look for older ones and even get some from online brokerage accounts.
Hi all, thanks again for the feedback. I think after I submit the analysis, I have to do a pitch of some sort. is that like giving a powerpoint presentation? Where can I find examples online? haha Im so lost on this..!
Thank you!
Be careful with seekingalpha. Most of the articles on there are pretty bad and could mislead you as they're written by people with no industry experience (despite what they might try to sound like in their bio)
Equity Analysis (Originally Posted: 03/09/2018)
Questionnaire for equity research analysis
Q1) What is the risk free rate techniques used for equity analysis?
Q2) How do you do sectoral analysis?
Q3) How do you derive to the types of multiples used for equity analysis?
Q4) which is the most reliable method for valuing a company?
Q5) Do you use CAPM model for calculating the cost of equity?
Q6) How do you calculate the cost of debt?
Q7) Do you use book value weight or market value weight of book value at arriving at cost of capital?
Q8) Do you take single cost of capital for entire forecast or do you change the cost of capital on annual basis?
Q9) For Indian companies, what terminal growth rate do you consider?
Equity securities valuation 101 sophomore year?
Questionnaire for Equity Analysis (Originally Posted: 03/08/2018)
Hello everybody, my name is Sidharaja Masali. I am currently pursuing MBA in Strategic Management from Indian School Of Business and Computing, Bangalore. I have selected equity research topic in my research proposal. In this rergards, I have prepared some questions related to equity analysis. May I request you to please answer below questions and respond as soon as possible? Note :- This research proposal excludes non financial companies. Please answer accordingly. Questionnaire for equity research analysis
Q1) What is the risk free rate techniques used for equity analysis?
Q2) How do you do sectoral analysis?
Q3) How do you derive to the types of multiples used for equity analysis?
Q4) which is the most reliable method for valuing a company?
Q5) Do you use CAPM model for calculating the cost of equity?
Q6) How do you calculate the cost of debt?
Q7) Do you use book value weight or market value weight of book value at arriving at cost of capital?
Q7) Do you take single cost of capital for entire forecast or do you change the cost of capital on annual basis?
Q8) For Indian companies, what terminal growth rate do you consider?
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