Need advice for career advancement
Hello,I am a May 2021 fresh grad currently working as a junior analyst for a small buy side firm (~$10m). Mainly doing industry research for companies in our portfolio. However, our firms modelling and valuation method is quite "lazy". We don't do DCF or anything quantitative besides looking at the 3 statements, look at PnL then try to forecast top and bottom line (with research of course) for the next 5 years, then derive the forward P/E to determine if the stock is a buy or not. Is this something I should worry about and should I learn modelling skills on my own for future jobs? Much appreciated on any feedback and advice, thanks!
You don't need to worry about the modeling skills as long as you avoid shops that model like crazy (Melvin and Candlestick come to mind).
Do most shops avoid intense modeling for valuations? I am just worried about me moving on to my next job and they would require strong DCF modeling or something like that and I would have no working experience with that. Is this also region specific? I am in Asia Pacific btw. Thanks!
Every shop does it slightly differently - one extreme is Napkin math, the other is 3000-line model (I only know of Melvin / Candlestick that do it like that).
DCF discounts the free cash flow, as long as you focus on key drivers that impact free cash flow, you are fine.
No one cares whether you have the work experience. If you want the job, learn the skills on your own. Or, work at the firm that doesn't require deep modeling.
Can’t complain too much, it being my first job out of undergrad. Starting in buyside, quite happy with this position. Although, I would want to learn as much as possible and move onto a bigger fund obviously (hence, the post)
10m is a prosperous personal account, not a firm lol
move ASAP
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