Ratios

Hey, I am working on a pitch for a project. I have done valuations before and my issue here is that I have a model with way too much information. What is the best parts of a valuation model to pull and insert in a ppt in hopes of advocating for a stock

 

Think about this for a second.

How can you advocate for a stock if you don't know what are the most compelling parts of your valuation argument? How could you possibly be in a position to ask this question?

The fact that you are asking it indicates that you did a shitty job in your analysis, for if you had done a good job, you would necessarily know the answer.

So think about it some more, and then come back with specific questions.

"There are three ways to make a living in this business: be first, be smarter, or cheat."
 
Sandhurst:
Think about this for a second.

How can you advocate for a stock if you don't know what are the most compelling parts of your valuation argument? How could you possibly be in a position to ask this question?

The fact that you are asking it indicates that you did a shitty job in your analysis, for if you had done a good job, you would necessarily know the answer.

So think about it some more, and then come back with specific questions.

Thank you for this. As I sit here (frankly super short-tempered) in my 36th hour of work this weekend, I came to say exactly that. +1 for you, sir.

 
Best Response

Abbreviated income statement - drive it down to ebitda with margins / growth - that would be a good starting point. If the company is new / techy - highlighting EBITDA would be less meaningful.

Depends on the type of analysis you're outputting - the LFCF would be insightful along with a calculated enterprise value driven down to equity value / value / share if public. Your WACC assumptions would also be useful ( nice output wacc table for example)

Stats aren't ever a bad thing to show - Rev growth, margins, debt / coverage / interest ratios are helpful

Hope this helps get you started

 

Boston, thanks for the legit feedback. To the others, sorry for maliciously wasting your time. God forbid I come to the IB bullpen and ask for some advice. I am not a stock pitcher, this valuation project was a one time thing and I thought to myself..."I bet I can get some objective feedback from the guys who do this everyday." Shit, I was just happy I build a 3 statement model on my own. So again, I guess I am an idiot and my post somehow alerted you at your desk during the 36th hour, interrupted you, and thus forced you into trying to shit on me for asking for expert advice. Stay classy my friends and I will make sure when I come back at a later time to ask for some from the IBD pros that I ask the mods to not bother the two of you with my question,

 
surferbarney:
Boston, thanks for the legit feedback. To the others, sorry for maliciously wasting your time. God forbid I come to the IB bullpen and ask for some advice. I am not a stock pitcher, this valuation project was a one time thing and I thought to myself..."I bet I can get some objective feedback from the guys who do this everyday." Shit, I was just happy I build a 3 statement model on my own. So again, I guess I am an idiot and my post somehow alerted you at your desk during the 36th hour, interrupted you, and thus forced you into trying to shit on me for asking for expert advice. Stay classy my friends and I will make sure when I come back at a later time to ask for some from the IBD pros that I ask the mods to not bother the two of you with my question,

You need some thicker skin man. This is a message board. Nothing to get so worked up over.

 

Don't let the 1st year investment banking analysts get you down. They think they know everything and try to make things sound more complicated than they really are. I used to do it too, to a degree. It's pretty clear from your question that it's for a school project, not an equity research pitch or something. Boston Banker's answer is good. Just ignore the others.

 

there is a difference between thick skin and simply being aggravated. Sure, if I had made a stupid mistake and caught some jokes bc of it then that would be fine, i would laugh it off, its all in fun. Yet, in this case, I came simply asking for some advice, I never took a step onto a pedestal, if anything I surrendered my ego and raised a fair question, only to be shit on by someone who I am sure was once in a similar spot that I am. I have wandered around this board for a little bit now, and while a majority of ppl are always helpful to posters, there is a growing group that seem to forget they once were guys asking questions about where to apply for SA positions, what offer to take, where to live...etc. These guys are now analysts, associates, pe..whatever, and find it necessary to shit on anyone else who raises the same questions they did. You should not have to read a page of stupid comments to get an answer to a reasonable question. If I would have posted some stupid nonsense asking what a BB bank is and then went on to complain that I have no SA offers, then sure shit on me...but there is a point where I think anyone, regardless of their "skin thickness" gets irritated

 
surferbarney:
I have wandered around this board for a little bit now, and while a majority of ppl are always helpful to posters, there is a growing group that seem to forget they once were guys asking questions about where to apply for SA positions, what offer to take, where to live...etc. These guys are now analysts, associates, pe..whatever, and find it necessary to shit on anyone else who raises the same questions they did.

First: When you look at my post history, you will notice that I go out of my way to be helpful. The vast majority of my posts are to provide useful personal advice. So, I take offense at your generalization.

surferbarney:
there is a difference between thick skin and simply being aggravated. Sure, if I had made a stupid mistake and caught some jokes bc of it then that would be fine, i would laugh it off, its all in fun. Yet, in this case, I came simply asking for some advice, I never took a step onto a pedestal, if anything I surrendered my ego and raised a fair question, only to be shit on by someone who I am sure was once in a similar spot that I am.

Second: I admit that I get aggressively critical when I am confronted with what I perceive as laziness. That said, you asked a stupid question, which evidenced a failure to actually do your own work. It is one thing to ask specific questions to clarify ambiguity, or even to ask fully-formed questions when you simply do not know what you're doing. It is another to throw down: "I have to do this thing. What do I do?" Never mind that if you wanted someone to actually help you they will need some details - it's just arrogant.

Your ego is manifest in the presumption that you can be this lazy. Maybe I am at fault for expecting that people give it the old college try before asking for help. If so, I apologize to you for expecting you to take your own assignment seriously.

"There are three ways to make a living in this business: be first, be smarter, or cheat."
 

Sunt suscipit minima modi at. Asperiores sint ex non temporibus. Dicta autem ut perspiciatis rerum quisquam. Ut omnis quod eaque mollitia. Rem soluta earum eaque quas laborum quos dignissimos est.

Est placeat placeat suscipit iste est. Qui atque in placeat temporibus. Et quia et aliquid et autem temporibus.

Non accusantium incidunt et dolorem laborum. Cum et eos laudantium molestiae est rem repudiandae recusandae. Vel aperiam quo cum et dolore sit eveniet. Voluptatum voluptas excepturi corrupti quisquam nisi occaecati tempora.

Voluptatem consequatur consequatur id dolorem reiciendis deleniti impedit. Sit non consequatur aliquid ullam vel. Impedit voluptatem non sunt magnam ex. Velit ut voluptas provident cum perspiciatis accusamus nihil. Dolorem voluptatem explicabo dignissimos ex ratione. Id vero est fugit nemo est.

Career Advancement Opportunities

April 2024 Investment Banking

  • Jefferies & Company 02 99.4%
  • Goldman Sachs 19 98.8%
  • Harris Williams & Co. New 98.3%
  • Lazard Freres 02 97.7%
  • JPMorgan Chase 03 97.1%

Overall Employee Satisfaction

April 2024 Investment Banking

  • Harris Williams & Co. 18 99.4%
  • JPMorgan Chase 10 98.8%
  • Lazard Freres 05 98.3%
  • Morgan Stanley 07 97.7%
  • William Blair 03 97.1%

Professional Growth Opportunities

April 2024 Investment Banking

  • Lazard Freres 01 99.4%
  • Jefferies & Company 02 98.8%
  • Goldman Sachs 17 98.3%
  • Moelis & Company 07 97.7%
  • JPMorgan Chase 05 97.1%

Total Avg Compensation

April 2024 Investment Banking

  • Director/MD (5) $648
  • Vice President (19) $385
  • Associates (87) $260
  • 3rd+ Year Analyst (14) $181
  • Intern/Summer Associate (33) $170
  • 2nd Year Analyst (66) $168
  • 1st Year Analyst (205) $159
  • Intern/Summer Analyst (146) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
BankonBanking's picture
BankonBanking
99.0
3
Betsy Massar's picture
Betsy Massar
99.0
4
Secyh62's picture
Secyh62
99.0
5
GameTheory's picture
GameTheory
98.9
6
CompBanker's picture
CompBanker
98.9
7
dosk17's picture
dosk17
98.9
8
kanon's picture
kanon
98.9
9
Linda Abraham's picture
Linda Abraham
98.8
10
numi's picture
numi
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”