Equity Research writing test+modeling test next Tuesday, seeking for advice

ashleyho's picture
Rank: Chimp | 10

Hey guys,

I am going to attend a 2 hours writing test + modeling test for an ER position next Tuesday, since I dont have any experience or much knowledge about ER, could anyone give me some advice on what the test might cover or what should I prepare for it? Thanks.

Comments (145)

Aug 12, 2010

Definitely search the forum for this - there should be at least two threads.

Pretty much you should feel comfortable with the financial statements, and be able to take an Earnings PR and use it to write a re-cap note somewhat quickly. You know, "XYZ co reported 3Q10 results today. Revs grew _bps y/y to _%, GM's grew _bps to _%, OM's improved _bps to _%. Management reaffirmed guidance ...blah blah blah." That sorta thing w/color and your interpretation of the earnings release. Probably just a recap note in 2 hrs, so likely a flash/quick note that would be 1-2 pg's long.

I imagine they'll probably have you update the model with the info from the PR/earnings release first, and then have you write the report and fill in the numbers based off of your updated model. Have your valuation metrics down.... they'll probably want a price target, and you'll want to know whether to derive it from DCF, P/E, P/S or EV/EBITDA.

My advice is to go to yahoo.com/finance, and look up earnings PR's. Practice taking one and writing a report based off of it. Try to get a few sell side reports (and models if possible) and practice mocking your report after those. If you can get a hold of a model, wipe out one quarter's info in a column, and update the column with a PR you've found.

You've got plenty of time to practice. Good luck.

    • 3
Aug 13, 2010
Bodhis:

Definitely search the forum for this - there should be at least two threads.

Pretty much you should feel comfortable with the financial statements, and be able to take an Earnings PR and use it to write a re-cap note somewhat quickly. You know, "XYZ co reported 3Q10 results today. Revs grew _bps y/y to _%, GM's grew _bps to _%, OM's improved _bps to _%. Management reaffirmed guidance ...blah blah blah." That sorta thing w/color and your interpretation of the earnings release. Probably just a recap note in 2 hrs, so likely a flash/quick note that would be 1-2 pg's long.

I imagine they'll probably have you update the model with the info from the PR/earnings release first, and then have you write the report and fill in the numbers based off of your updated model. Have your valuation metrics down.... they'll probably want a price target, and you'll want to know whether to derive it from DCF, P/E, P/S or EV/EBITDA.

My advice is to go to yahoo.com/finance, and look up earnings PR's. Practice taking one and writing a report based off of it. Try to get a few sell side reports (and models if possible) and practice mocking your report after those. If you can get a hold of a model, wipe out one quarter's info in a column, and update the column with a PR you've found.

You've got plenty of time to practice. Good luck.

Thank you very much indeed! But I really have a question that might sound stupid, what do you mean by 'PR'?
BTW, my biggest concern is to build a DCF/Multiples model from scratch. May work harder on this. Thanks again.

Aug 13, 2010
ashleyho:
Bodhis:

Definitely search the forum for this - there should be at least two threads.

Pretty much you should feel comfortable with the financial statements, and be able to take an Earnings PR and use it to write a re-cap note somewhat quickly. You know, "XYZ co reported 3Q10 results today. Revs grew _bps y/y to _%, GM's grew _bps to _%, OM's improved _bps to _%. Management reaffirmed guidance ...blah blah blah." That sorta thing w/color and your interpretation of the earnings release. Probably just a recap note in 2 hrs, so likely a flash/quick note that would be 1-2 pg's long.

I imagine they'll probably have you update the model with the info from the PR/earnings release first, and then have you write the report and fill in the numbers based off of your updated model. Have your valuation metrics down.... they'll probably want a price target, and you'll want to know whether to derive it from DCF, P/E, P/S or EV/EBITDA.

My advice is to go to yahoo.com/finance, and look up earnings PR's. Practice taking one and writing a report based off of it. Try to get a few sell side reports (and models if possible) and practice mocking your report after those. If you can get a hold of a model, wipe out one quarter's info in a column, and update the column with a PR you've found.

You've got plenty of time to practice. Good luck.

Thank you very much indeed! But I really have a question that might sound stupid, what do you mean by 'PR'?
BTW, my biggest concern is to build a DCF/Multiples model from scratch. May work harder on this. Thanks again.

Yeah, I meant earnings release, sorry about that. Wasn't too clear.

About building the DCF/Multiples... I assume you'll want to do this in your model after you've filled in each financial statement. Let me know if the model the other user sends you doesn't have this analysis, and I'll dig through some models.

Aug 12, 2010

I've got a model and a note from when I used to work in ER. It wasn't for a BB but it is all pretty similar. Let me know if you'd like me to forward it to you.

Aug 13, 2010
MP80:

I've got a model and a note from when I used to work in ER. It wasn't for a BB but it is all pretty similar. Let me know if you'd like me to forward it to you.

MP80, so nice of u if you can forward it to me. Thanks a lot!

Mar 16, 2017

MP80, would you be willing to fwd me the model as well. thanks in advance, Andy

Aug 16, 2010
MP80:

I've got a model and a note from when I used to work in ER. It wasn't for a BB but it is all pretty similar. Let me know if you'd like me to forward it to you.

Hi MP80 - I am also looking for ER template. Can you please forward me model?

appreciate your help.

Thanks a lot!
kris

Sep 2, 2010
MP80:

I've got a model and a note from when I used to work in ER. It wasn't for a BB but it is all pretty similar. Let me know if you'd like me to forward it to you.

Hi, MP80, it will be appreciated if you can forward the ER template to me. Thanks a lot!

Sep 11, 2010
MP80:

I've got a model and a note from when I used to work in ER. It wasn't for a BB but it is all pretty similar. Let me know if you'd like me to forward it to you.

Hi MP80, would you kindly forward me your model and note? I am preparing for an ER interview and am in deperate need to get familiarized with how a model works. Thanks a lot!

Sep 13, 2010
monkey101:
MP80:

I've got a model and a note from when I used to work in ER. It wasn't for a BB but it is all pretty similar. Let me know if you'd like me to forward it to you.

Hi MP80, would you kindly forward me your model and note? I am preparing for an ER interview and am in deperate need to get familiarized with how a model works. Thanks a lot!

Me too please!

Apr 26, 2016

Hi MP80, if you get a chance, would you mind forwarding me the model and note as well? I am prepping for an equity research interview in Thursday and would greatly appreciate it. Thanks in advance!

Sep 22, 2010
MP80:

I've got a model and a note from when I used to work in ER. It wasn't for a BB but it is all pretty similar. Let me know if you'd like me to forward it to you.

Hi MP80, I would appreciate it if you could send it to me also. I'm writing up an equity research report and need help. Thanks!

Sep 26, 2010
MP80:

I've got a model and a note from when I used to work in ER. It wasn't for a BB but it is all pretty similar. Let me know if you'd like me to forward it to you.

Would you mind sending me this please? It would be a great help. Thanks!

Sep 26, 2010
MP80:

I've got a model and a note from when I used to work in ER. It wasn't for a BB but it is all pretty similar. Let me know if you'd like me to forward it to you.

If you dont mind, me too please. thank you so much.

May 5, 2014
hakeemolajuwon:
MP80:

I've got a model and a note from when I used to work in ER. It wasn't for a BB but it is all pretty similar. Let me know if you'd like me to forward it to you.

Would you mind sending me this please? It would be a great help. Thanks!

If you don't mind, can I see this as well please? I really appreciate it.

Oct 2, 2010
MP80:

I've got a model and a note from when I used to work in ER. It wasn't for a BB but it is all pretty similar. Let me know if you'd like me to forward it to you.

MP80, I am applying for equity research position now, and your model will be a great help to me. Could you send me model and note? I `ll really appreciate that.

Aug 23, 2011
MP80:

I've got a model and a note from when I used to work in ER. It wasn't for a BB but it is all pretty similar. Let me know if you'd like me to forward it to you.

MP80, mind send me a copy of your ER model and note!appreciate your help!

Aug 29, 2011
MP80:

I've got a model and a note from when I used to work in ER. It wasn't for a BB but it is all pretty similar. Let me know if you'd like me to forward it to you.

Hi MP80, Do you mind to sent me the ER model and the note? Thanks a loooot for sharing.

Jan 6, 2012
aileenish109:
MP80:

I've got a model and a note from when I used to work in ER. It wasn't for a BB but it is all pretty similar. Let me know if you'd like me to forward it to you.

Hi MP80, Do you mind to sent me the ER model and the note? Thanks a loooot for sharing.

i'd love to take a look, too if it's not too much trouble

Jan 6, 2012
MP80:

I've got a model and a note from when I used to work in ER. It wasn't for a BB but it is all pretty similar. Let me know if you'd like me to forward it to you.

Hi can you forward me that model and note please. Thank you. I have a ER test coming and trying to prepare.

Apr 2, 2012
MP80:

I've got a model and a note from when I used to work in ER. It wasn't for a BB but it is all pretty similar. Let me know if you'd like me to forward it to you.

can you send me the ER model and note as well if it isnt too much trouble! it would be tremendously appreciated!

Apr 5, 2012
MP80:

I've got a model and a note from when I used to work in ER. It wasn't for a BB but it is all pretty similar. Let me know if you'd like me to forward it to you.

could you send it to me as well? Thanks man

Apr 5, 2012
MP80:

I've got a model and a note from when I used to work in ER. It wasn't for a BB but it is all pretty similar. Let me know if you'd like me to forward it to you.

Did you ever expect that 2 years later people would still be asking you for a copy? I'd really appreciate a copy too. Thanks!

May 17, 2012
MP80:

I've got a model and a note from when I used to work in ER. It wasn't for a BB but it is all pretty similar. Let me know if you'd like me to forward it to you.

Could you send me a copy of the model and note, I want to practice as I am searching left and right for a ER job and this would be extremely useful.

Thanks in advance,

Nov 30, 2013

Any chance you could forward me as well? Have an interview coming up.

Jan 19, 2014

MP80 would you please share your model with me as well? I have a two hour test scheduled for next week and to see what is being used would be of great help! really appreciate it! [email protected]

Mar 26, 2014

Can you please send me a copy of the model and note. Thank you :)

Jul 1, 2014

Hey MP80, if you could send me the model as well, it would be much appreciated!

Jul 8, 2014

It's a long shot, but MP80 do you still have an old model from when you did ER? I'd like to practice updating one w/ a past PR. Appreciate it.

Aug 18, 2014

Bananabreads, were you able to get an old model? I would appreciate it alot if you could forward it to me! Thanks!

Aug 18, 2014

Hi MP80, I have an upcoming onsite interview coming up with some writing/modeling exercises. I would appreciate it if you could forward me the model and the note from ER so I can best prepare myself? I have never had ER experiences before so I am not sure how I should study for this! Thanks alot!

Nov 6, 2014

Would you mind sending me this please? It would be a great help. Thanks!

Nov 22, 2014

Hi MP80 it would be awesome if you could send me the material, it would be a HUGE help for an upcoming assessment I have this week! Thanks a million!!

Dec 4, 2014

Would be very helpful if I could get that passed on to me as well.

Jul 11, 2015

Hi MP80,

Do you still have that model/note? If so, can you forward it to me please?

Much appreciated.

Mar 22, 2016

Hi MP, would you be so kind to send me the research note and model? Thanks!

Jan 13, 2016

Hi MP80,

Would you please forward the model and notes to me? I'd really appreciate it. Really want to break into ER.

Thank you!

Apr 1, 2018

Hey, I'm heading to an Equity Research interview in 2 days, involving a 2-hrs test for a written ER report.

Would you mind sending on the research piece to me? It'd be highly appreciated.

The interviewer mentioned both quantitative (incl valuation & fin modelling) & qualitative aspects are needed for the report... Any advice about the extent of financial modelling needed (& time spent on it during the time-constraint) would be much appreciated. Thanks!

Mar 24, 2019

HI MPBO, would you mind sending the model and note one more time? I have an ER interview coming up and would appreciate the practice. thank you

Sep 3, 2019

Please do you still have this? If so please may you share with me?

Aug 12, 2010

I have never heard of these types of test, mind if I ask what is it for? Is this an interview process they are making you do this??

Apr 26, 2016

IMO skills of a research guy: writing and modeling

Apr 26, 2016

bump.

Apr 26, 2016

I would be ready to update a model w/the latest PR (possibly some pro-forma), forecast the rest of the year and next year in the model and write an investment recommendation.

Apr 26, 2016
Bodhis:

I would be ready to update a model w/the latest PR (possibly some pro-forma), forecast the rest of the year and next year in the model and write an investment recommendation.

typical stuff then. makes sense. thanks bodhis.

Apr 26, 2016

actually, so it's apparently a 4 hour skills test. does that mean there's something snazzy in there?

Aug 13, 2010

Just a guess, but the only thing that makes sense to me is PR = Press Release

"One should recognize reality even when one doesn't like it, indeed, especially when one doesn't like it." - Charlie Munger

Apr 26, 2016

they'll model out the income statement a bit more, other issues lke buybacks, then slap on a PE multiple.

Best Response
Aug 15, 2010

Yeah, I just want to chime in to reiterate what Bodhis said about the writing part of the interview. Companies issue press releases along with their earnings, and you should be prepared to write a report that summarizes the main points of the PR.

An example of a press release
http://investor.activision.com/releasedetail.cfm?R...
Don't write one lengthy article. Rather, you should be prepared to do the following things:

1) Summarize the entire article with a snappy headline, just like in a newspaper. "Activision 1Q Beat, Raises Guidance for F10" or "Google: Robust Android Market Fuels Growth"

2) Your report should have the three/four most important items in a bulletized, headline format. Write a headline for each, and a paragraph (or two) for each that lays out the facts and describes your opinion.

This is the main body of your report. Each bullet should support your Buy/Sell/Hold recommendation. These four headlines should be below your main headline. The appropriate paragraph should be directly beneath each headline.

The whole idea is to allow your client to skim your report's headlines in roughly 15-20 seconds. By just reading the headlines, they should know all the main points of your article. If they want to read further, they can read your text for your in-depth analysis

Typical items to look for and bulletize would be

a) the main reason that the company is enjoying success/failure, and what that means for the future.
b) a secondary reason that the company is enjoying success/failure, or another big impact item. "Google's acquisition of XYZ looks to add $0.10 to F10"
c) did the company issue "guidance" for the next quarter's results? If so, that's a bullet. "GOOG reaffirmed F10 outlook"
d) last bullet should be your valuation, although this might not be included in your report. "GOOG is a Buy with $550 Price Target" would be the headline, and then you write a few sentences about how you arrived at that conclusion, whether by using a DCF or multiples, etc.

3) Avoid overly sensational language in your writing. Words like: amazing, explosive, huge, etc should usually be avoided.

I can send you a real research piece if you'd like. PM me.

    • 5
Aug 29, 2011
gamenumbers:

Yeah, I just want to chime in to reiterate what Bodhis said about the writing part of the interview. Companies issue press releases along with their earnings, and you should be prepared to write a report that summarizes the main points of the PR.

An example of a press release
http://investor.activision.com/releasedetail.cfm?R...
Don't write one lengthy article. Rather, you should be prepared to do the following things:

1) Summarize the entire article with a snappy headline, just like in a newspaper. "Activision 1Q Beat, Raises Guidance for F10" or "Google: Robust Android Market Fuels Growth"

2) Your report should have the three/four most important items in a bulletized, headline format. Write a headline for each, and a paragraph (or two) for each that lays out the facts and describes your opinion.

This is the main body of your report. Each bullet should support your Buy/Sell/Hold recommendation. These four headlines should be below your main headline. The appropriate paragraph should be directly beneath each headline.

The whole idea is to allow your client to skim your report's headlines in roughly 15-20 seconds. By just reading the headlines, they should know all the main points of your article. If they want to read further, they can read your text for your in-depth analysis

Typical items to look for and bulletize would be

a) the main reason that the company is enjoying success/failure, and what that means for the future.
b) a secondary reason that the company is enjoying success/failure, or another big impact item. "Google's acquisition of XYZ looks to add $0.10 to F10"
c) did the company issue "guidance" for the next quarter's results? If so, that's a bullet. "GOOG reaffirmed F10 outlook"
d) last bullet should be your valuation, although this might not be included in your report. "GOOG is a Buy with $550 Price Target" would be the headline, and then you write a few sentences about how you arrived at that conclusion, whether by using a DCF or multiples, etc.

3) Avoid overly sensational language in your writing. Words like: amazing, explosive, huge, etc should usually be avoided.

I can send you a real research piece if you'd like. PM me.

Hi gamenumbers,
What you said make a lot of sense for me. Thanks a lot for sharing. Do you mind to sent me the real research piece you mentioned? Thanks a lot/

Jan 6, 2012
aileenish109:
gamenumbers:

Yeah, I just want to chime in to reiterate what Bodhis said about the writing part of the interview. Companies issue press releases along with their earnings, and you should be prepared to write a report that summarizes the main points of the PR.

An example of a press release
http://investor.activision.com/releasedetail.cfm?R...
Don't write one lengthy article. Rather, you should be prepared to do the following things:

1) Summarize the entire article with a snappy headline, just like in a newspaper. "Activision 1Q Beat, Raises Guidance for F10" or "Google: Robust Android Market Fuels Growth"

2) Your report should have the three/four most important items in a bulletized, headline format. Write a headline for each, and a paragraph (or two) for each that lays out the facts and describes your opinion.

This is the main body of your report. Each bullet should support your Buy/Sell/Hold recommendation. These four headlines should be below your main headline. The appropriate paragraph should be directly beneath each headline.

The whole idea is to allow your client to skim your report's headlines in roughly 15-20 seconds. By just reading the headlines, they should know all the main points of your article. If they want to read further, they can read your text for your in-depth analysis

Typical items to look for and bulletize would be

a) the main reason that the company is enjoying success/failure, and what that means for the future.
b) a secondary reason that the company is enjoying success/failure, or another big impact item. "Google's acquisition of XYZ looks to add $0.10 to F10"
c) did the company issue "guidance" for the next quarter's results? If so, that's a bullet. "GOOG reaffirmed F10 outlook"
d) last bullet should be your valuation, although this might not be included in your report. "GOOG is a Buy with $550 Price Target" would be the headline, and then you write a few sentences about how you arrived at that conclusion, whether by using a DCF or multiples, etc.

3) Avoid overly sensational language in your writing. Words like: amazing, explosive, huge, etc should usually be avoided.

I can send you a real research piece if you'd like. PM me.

Hi gamenumbers,
What you said make a lot of sense for me. Thanks a lot for sharing. Do you mind to sent me the real research piece you mentioned? Thanks a lot/

Hi gamechangers,

Your thread is helpful can you send me that real research piece. Thanks alot.

Apr 2, 2012

can you send me a copy of that research piece as well if its not too much trouble! much appreciated!!!

Apr 26, 2016

Depends on the firm. Could be a short test where you have an hour or two to fill in a model from a P/R and forecast as much as possible, or it could be longer where you have to build out an entire model. There will definitely be some writing involved as well. What you get might depend on how much modeling experience you claim to have, but those are the two basic types I have come across.

Apr 26, 2016

Awesome thanks for the help!

They said it takes 2-3 hours and they make everyone do it. That's the extent of what they told me. I'll prep for both possibilities!

Apr 26, 2016

This should help get an idea of what it's like:
http://www.wallstreetoasis.com/forums/equity-resea...

Aug 28, 2018

Hi Gamenumbers,

Do you mind to send me a research piece please? Thanks so much!

Aug 15, 2010

I have over a year of experience in equity research and would ace this very easy interview test. It is quite interesting that I have had such a difficult time trying to even get an interview, yet this kid is interviewing for a position I would be very qualified for and he hardly knows what a press release is.

    • 1
    • 5
Aug 27, 2010
cw4937:

I have over a year of experience in equity research and would ace this very easy interview test. It is quite interesting that I have had such a difficult time trying to even get an interview, yet this kid is interviewing for a position I would be very qualified for and he hardly knows what a press release is.

well your response basically shows why no one wants you- you're a stuck up snob.

Jan 14, 2016

Same... What a shame these target school kids keep getting handed these positions and they hardly know a thing

Jan 15, 2016

in a way no one really gets trained for a specific job with any degree you learn relevant theoretical concepts for a particular field or multiple fields, the actual job training or knowing the job before you do it, comes through training programs either where you work or through some training institute or an online program, so assuming this target school students get preference due to their ability to work harder since target schools generally have a tougher curriculum, lower acceptance rates (which means only those very good academically get through) and another aspect of this can be that the people in the position to hire someone will be from those target schools so they would prefer someone from a similar academic background

but in the end it depends on how well you can network and how likable as a person you are because the communication aspect matters a lot more in any job since no one wants to work with someone who is just damn awkward when it comes to socializing, think of the weird relative in your family no one wants to talk to or the weird friend/acquaintance you stay away from, additionally the skill level required in finance is not too difficult to learn, so familiarity and likability counts a lot more

Apr 26, 2016

Can I get it too? Thanks!

Apr 26, 2016

Is this for an SA?

Apr 26, 2016

This may be a dumb question, but when someone says to update a model with new numbers/a press release, is that literally just inserting more columns into the spreadsheet and manually adding in the numbers?

Apr 26, 2016

Hi!

-No, this would be for a FT position I got through networking.

-And I think that's what "updating a model" entails, but probably projecting out a few years into the future as well. I really don't know though, because the only modeling test I've done involved building out a 3 statement model.

Apr 26, 2016

Which company? I believe the modeling test is different across BB's..

Apr 8, 2019

HI lhgal,

Did you ever come across a practice model? If so would you forward it to me?

Thanks

Aug 18, 2010

This is why I keep coming back to WSO - Lots of interesting and great advice here!

" A recession is when other people lose their job, a depression is when you lose your job. "

Aug 7, 2017

This was great thanks for posting this

Aug 25, 2010

MP80, hope you aren't annoyed by the requests, but I also have an Equity Research interview coming up with 2 aptitude tests. It's on friday..yikes 2 days away. Care to forward the model and note? Greatly appreciated!

Apr 1, 2018

- dont try and talk about too (focus on three key things that both have in common - operational, financial statements, valuation etc) - think for yourself because its the only way to get better.
- keep it short and simple.. look up KISS. try keep within one page (will be hard but everyone else wont do this - this will show true class and set you apart)
- know about the companies inside out for when they talk to you (you dont have to cover this when you write it up), you can just answer their questions. You dont have to remember everything.. just important and simple stuff that you think matters. As long as you can justify it, thats good enough. No one will expect you to be an expect so dont worry.

good luck.

Aug 26, 2010

Is this an interview process they are making you do this?

Apr 1, 2018

i'd isn't supposed to be capitalized?

Apr 1, 2018

Just did this for my hire. I got an email at 5 a.m. that contained an empty model, and a blank tab that said 'valuation'. Also had a 10Q (in your case it will prob be a 10K) for a company that was within their coverage. They said to use any available public information (i.e. press releases and presentations from their website) to fill out the model. Then use a valuation method of your choice. Then do a write up summarizing the operating & financial condition of the company. End with a recommendation and your thoughts on the stock.

My advice after doing this--

Nail the valuation and the write up. For the write up I used a research report template--Ill send you mine if you want it. Learn some things about the industry and methods that are important for valuation and mention them in the report. For example, go to google and search for investor metrics for oil and gas or something like that. You will find something like ebitdax / ev & PV10. Important to the industry, and it will show that you have good research skills.

Finally, have as many people read it as possible for errors & remember to use strong technical language that is as concise as possible.

Apr 1, 2018

What template did you use for your report? I have templates from the top firms but figured yours was more simple if it's for a quick interview

Jul 12, 2018

Hi! Would you mind sending me the report template that you used? I do appreciate your help. I have an 2hour interview for investment analyst coming next week and am trying to practice cuz my experience is very limited. Thanks!

Aug 28, 2018

Hi SK8247365,

Would you mind to send me your research report template please? thanks so much!!

-J

Aug 28, 2018

Would it be possible to get a copy of that template?

Jun 19, 2019

Hi, would you please send me the template? I have a modeling+writing exercise in two days, and would greatly appreciate it if you could share the template with me.

Sep 3, 2019

Hello Please may you share with me your research template?

Apr 1, 2018

Excellent, thanks for the info.

Apr 1, 2018

Thanks for the helpful answer. Any chance you can send me the research report template you mention? Would be SO appreciated!

Apr 1, 2018

Can I get a copy of that research report template? I want to break into Equity Research like no other!

Jan 8, 2012

I'm not interviewing for a position or need it, but I would find it interesting to look at as well if it's an easy send.

Thanks.

Apr 1, 2018

i think you already answered your own question concerning the interview. it should be mostly fit with general questions on market and stocks. phone interviews tend to be very straight forward with very few, if any, surprises.

in terms of in depth industry knowledge, bankers dont even come close to er guys...that's why there's a vetting process. pe firms are mostly looking for modeling and deal making skills, and that's why banking experience tends to be more suitable for the job. im not sure if er is the right thing if your next move is pe...although i've seen it happen. sell side er --> hedge fund is the more traditional career path.

Apr 21, 2012

MP80, I know it may be a long shot but do you still have that model and note you mentioned 2 years ago? I have an interview in 2 days and just found this thread. Hope you can send me a copy. Much appreciated!!!

Apr 1, 2018

Agreed that you will get an earnings PR, most likely. So they're looking for you to write a faux earnings note. You may also get a copy of the analyst's last note, which will help you identify what they're looking for. 1hr might be kind of tough if you've never done anything like it before.

A quick outline could look like this:
1. Results recap (revenue, EPS, EBITDA), how those metrics changed year over year, and discuss any operating metrics that are important (reserves for O&G, monthly active users for an internet company, etc).
2. Guidance, changes vs previous guidance (need previous PR), discuss factors influencing company's ability to meet guidance.
3. Opinion on outlook for the quarter and year, changes to estimates, etc.

If you've got extra time, you could read the earnings call transcript to get a better idea of content to discuss. This kind of exercise is hard if it's a company you've never thought about before, but I hope that helps.

    • 1
Apr 1, 2018

Just adding to charlie: The opinion section can help set you apart. Read up on the industry and write up something thoughtful. Don't just parrot whatever management said on the call.

They also care a lot about style. Be careful with grammar and try to be concise.

May 17, 2012

Could you send it my way as well? Thanks man.

Apr 1, 2018

Well, if there is a hold on it there is no target price. So if it was poor earnings you could just say maintain our hold rating. You could probably even get away with that for a buy if you are careful, but if you want to go beyond what they asked for then yeah go ahead and put in estimates.

Apr 1, 2018

False. You may have a hold, but you still have a directional bias. Also, JPM/MS/GS will have PTs in a "hold" environment...

Apr 1, 2018

My only concern regarding that is if I include estimates, that opens a whole array of questions that could come surrounding how I got to my #'s and seeing as though I don't have a model to work off of, I wouldn't have much ground to walk on. I guess I just answered my own question, but I suppose using consensus #'s wouldn't be a bad idea?

Apr 1, 2018

It's way more about how you get to the numbers than what you have. Just be able to justify any assumption you make. And you an always go without if you don't feel like you have enough time.

Apr 1, 2018

Having never spent a day working in ER but having read countless reports and spoken to most of the analysts in my space I would be really impressed if you had a simple operating model that you could reference to support your high level numbers (even if your assumptions were driven off of consensus data). I realize this would probably require another few hours of work but I think it might stand to differentiate your candidacy from other applicants. I realize this is above and beyond a simple writing sample request. Good luck to you.

Apr 1, 2018
junkbondswap:

Having never spent a day working in ER but having read countless reports and spoken to most of the analysts in my space I would be really impressed if you had a simple operating model that you could reference to support your high level numbers (even if your assumptions were driven off of consensus data). I realize this would probably require another few hours of work but I think it might stand to differentiate your candidacy from other applicants. I realize this is above and beyond a simple writing sample request. Good luck to you.

The one area I lack expertise in (pretty much the sole reason I want to move) is my lack of modeling skills. With that said, how would one build a "simple" operating model...I figure it would be good practice as well.

Apr 1, 2018

Also if my current company has a working model for this company, would it be wrong for me to utilize that as my "model" and make any forecasting changes as I see fit?

Apr 1, 2018

Ethically you shouldn't given that it is the property of your company and likely falls under any confidentiality agreement that you may have. With that said, if you have access to a full blown model you should be able to build a very simple version from scratch. Take 3 years of historicals and forecast out 5 years based on your tweaked assumptions. If you feel comfortable you can build in 3 cases (base, upside, downside) but it sounds like, based on your own admission, that your modelling skills are weak. If your goal is ER then you will ultimately have to spend the time, money, and resources to get your modelling skills up speed, which honestly isnt that difficult if you are willing to put the time in. The math is straight-forward and even if you do not understand accounting you can teach yourself by taking one of your company's existing models and seeing how the 3 statements link together.

Apr 7, 2019

Hi fluff head, I am interviewing for an associate role this week. Any suggestions following your experience last year? Modeling is not my strength so I am not sure what to expect for the modeling test this week.

Apr 1, 2018

The last question I have pertains to the format of the write up...should it be in an research-ish template with a fake company name? Should it mimic their company's template with their company's name?

May 26, 2012

If I could have a copy as well it would be greatly appreciated!

Oct 16, 2012

i'd love a copy too, thanks

Jan 10, 2013

Hi guys,

Does anyone have a copy of the model and research note. I would like to see this as well.

Feb 7, 2013

Bump

Feb 11, 2013

Could I have a copy as well. I would greatly appreciate that!

Feb 12, 2013

If anyone could send me the research piece or the model I would really appreciate it, thank you!

Feb 12, 2013

Hey, if anyone has the research note and/or model and could pass it along to me that would be great. Thanks.

Feb 17, 2013

Yea if someone could pm me the model as well it would be much appreciated

Apr 4, 2013

hi, new to the site and started reading up on this topic (not in equity research or finance). anyway, am curious and want to learn about equity research models. much appreciated if anyone can share a sample equity research model or test.

Apr 8, 2013

Same here. Would be interested in learning more about the model and the test.

May 18, 2013

same here. interview with a BB next week. will greatly appreciate and buy you a drink once I land the job.

May 28, 2013

Same here, If I could have a copy as well it would be greatly appreciated!

Jun 3, 2013

Please send me the model

Oct 15, 2013

Hey guys, if it's not too much trouble could I get a copy of the sample model and report as well? Would be greatly appreciated. Thanks!

Jan 19, 2014

I'd greatly appreciate if you could pm me the model as well, or someone who has already gotten the model from him. Thanks!

Jan 19, 2014

All the people signing up to WSO just to milk the person.

Jan 31, 2014

Hey..not to be a stickler. I have heard of analysts dissuading their associates from sending models to clients (prior to removing all but the 3 statements/final summary sheet). It's kind of like an unwritten rule that ex-associates should also not be distributing their ex-analyst's models. If the author of the model was the poster, than that is fine. Just my 2 cents.

Jul 3, 2014

I would greatly appreciate if someone could forward the model to me also. Thanks so much!

Jul 10, 2014

This post is old but has anyone here gotten the model to test it out for themselves?

Jul 15, 2014

Any chance anyone still has this model/writing sample and would be able to PM me with it? Thanks!

Aug 31, 2014

could anyone please send me the model? I have a test coming up. Thanks a lot!

GG

Sep 13, 2014

If anyone is able to forward me the samples as well, it would be much appreciated.

Sep 15, 2014

Can someone please send this over to me as well?

Oct 21, 2014

Did you or anyone else get a copy of the model? If so please send it my way

Oct 26, 2014

This is ridiculous. Surely the original poster didn't spend hours of his time forwarding models to everyone who asked. Everyone just put in the grunt work yourself, spend a few hours digging around the internet and googling different topics. You'll find plenty of sample models, as case studies and standalone xls templates. There's tons of white papers of Modeling tests that walk you through the entire process step by step. This forum has been a great resource to myself and I'm sure as well for everyone interested in investing, etc. but quit asking the guy for stuff after the 15th or 20th person does. Just make your own thread and request one, I'm sure someone will reply and PM you one. This is just a waste and like beating a dead horse.

Nov 25, 2014

Dat dere Model much needed brah. Thanks brah.

Nov 25, 2014
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