SM L/S modeling

What's the difference between the shops that swear by IB-type modeling and those that focus largely on understanding the primary drivers of the business and do lighter modeling? Where's the difference coming from? Just a preference/background of the PM?

4 Comments
 
wso_user

SM = barely model, annuals, revenue and EV/revenue to get to target price

Pod = 20000 line weekly models based on CC panel data, rolling up to monthly models, rolling up to quarterly, with 10-200 line builds for just sales & marketing and promotions, with 10 year seasonality averages, to make sure they get to the right EPS # by 1-2 pennies 

Now do LO.  “Looks cheap based on 10y average multiple and has never broken $90.”

 

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