Equity Research Report

Equity Research Report

1) The Industry analysis,

·         Industry Profile

·         Key Industry ratios and statistics.

·         Organization and Structure

·         Current Environment

·         Porter’s Five Forces & Industry

·         Qualitative Analysis.

2) The company,

·         Macroeconomic Analysis

·          Checking public information of the company

·         Discussion/ interviews with company management

·         Prepare 5-year cash flow model and earnings forecast model.

·         Review your operational and financial assumptions

·         Assess management and competitive environment, buyers, suppliers, substitutes, porter 5-forces model that tells you competitive advantage of the company.

 3) Government interest and fiscal policy factors impacting company,

 4) Market interest, and

  5) Company valuation analysis

1. Use intrinsic valuation—Discounted Cash Flow (DCF) method

2. Relative valuation.

3. Sum-of-the-parts valuation method, wherever required.

4. Regression by taking company key ratios and macroeconomic factors impacting company.

Important-

Determine the sources of information you will use in starting your search.

Determine why a particular stock is cheap.

Have very specific explanations for why you believe that the shares will rise within a time frame you find acceptable.

Buy at a price that ensures you won't be hurt too badly if you are wrong.


Keep eye on whole sale price index, GDP, trade deficit