I have to create an EPS model from scratch for an interview and I have never made a model before nor have I heard of an EPS model.
I've seen DCF valuation models in excel before but what is an EPS model?
How do I make one? Any one have a template I can look at? Part of the instructions say that it is supposed to look like a net income or EPS model in stock reports.
Thanks
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Im a model you konw what I mean?
net income-preferred dividends/weighted average common shares outstanding kid
http://lmgtfy.com/?q=What+is+an+EPS+model%3F
3rd link from the top.
Oops, I meant the second link.
Ironically this is now the third link from the top.
Haha, that's exactly why I wrote that =P
new constructs huh?
Black and yellow black and yellow
Help on EPS Model? (Originally Posted: 05/05/2013)
I need to create an EPS Model for my upcoming interview for equity research firm. I do not know where to begin with this modeling...I have seen and worked on DCF models, but not EPS models. Yes, I googled and searched here to see any previous discussions, but I was not able to find a helpful thread. I would very much appreciate any advice and thoughts regarding EPS modeling.
Thanks,
http://lmgtfy.com/?q=What+is+an+EPS+model%3F
All you are doing is projecting the the income statement all of the way down, rather than looking at cash flow.
It's actually much simpler than a DCF, follow the advice from PE Investor. Instead of going all the way to FCF, you stop at net income, no need to project out CAPEX and no need to discount... then barring any buybacks (that you expect) divide by weighted average shares out for basic EPS and diluted shares for diluted EPS.
FYI, this is a useless model that tells you next to nothing about the company. This is why I hate the sellside, they hock this crap off like their actually providing useful information. Note the fact that EPS figures are accounting figures that can easily be bent and have little berring on future profitability. I would recommend against telling them this, as I assume, like most independent ER firms, this is their bread and butter.
My advice: bail to the buyside as fast as humanly possible and try not to fall in with the herds while you work in ER - most of the crap they send me includes no intelligent or remotely novel thought.
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