Sup yall, Been awhile now but good to see the board is still alive and well. New job has firewalls up the a$$ so don’t get to post as much as I’d like. Good to see that JDV made a comeback, now if we can only get Farley back in action… Have a Sell Side research interview coming up that will consist of an Excel Test, basically updating a revenue model off a press release. Seems fairly simple but would hate to screw that up because I’ve never seen it before. Thought I would poll the collective wisdom of this fine board to see if anyone can any one point me in the right direction of how to get my hands on something comparable so I can at least familiarize myself with the process. Any other words of wisdom or comments on what to expect are greatly appreciated! Thanks and go Ducks, fxguy1234
just updating? or projecting a few years out? Because updating is just plug in numbers from the 10Q into a premade template of the 4 financial stmts. Anyone who passed L1 should be able to figure it out pretty quick
Greengrape, Yes, updating the projections I imagine - do you have experience?
I literally went through what you did about a month ago, and got the job as SS equity research. Although I was asked to not only update, but also project the financial stmts for a few years out. Familiarize yourself with the 10Q, analyst conference call, and earnings release. Know where the number are in the documents that pertain to the 4 financials If all you have to do is update, it should be pretty straightforward
How did to you prep for that? I don’t have experience manipulating these models so I’d like to familiarize with that if possible. Do you know of any resources available? Do you mind if we trade e-mails? Would love to get your insights. Thanks again.
I worked on the sell side for a little over 2 years and I was going to offer to help you until I saw “go Ducks.” Now, not so much.
greengrape Wrote: ------------------------------------------------------- > I literally went through what you did about a > month ago, and got the job as SS equity research. > Although I was asked to not only update, but also > project the financial stmts for a few years out. > > Familiarize yourself with the 10Q, analyst > conference call, and earnings release. Know where > the number are in the documents that pertain to > the 4 financials > > > If all you have to do is update, it should be > pretty straightforward 4 financials?
bromion Wrote: ------------------------------------------------------- > I worked on the sell side for a little over 2 > years and I was going to offer to help you until I > saw “go Ducks.” Now, not so much. Haha, sorry Bromion. If it makes you feel any better the NFL team I root for is crap so I am relegated to rooting for my brother’s college team. SO not exactly a die-hard fan. But hopefully we can put PAC 10’s superiority to the side for now and focus on the task at hand. Chip Kelly still loves you! Seriously, though - any help is appreciated.
How long until the interview? My advice is to select a listed company and build your own model prior to the interview. Enter the historic data for BS, IS and CFS and try to link them where appropriate. Now forecast out 3 years into the future. Don’t hardcode in your forecasts. Make a separate page for you assumptions on growth which your forecasts link to. This allows the reader to manipulate the data for a sensitivity analysis and also makes your assumptions explicit to the reader. If you want to get fancy you can add a DCF model and peer comp to give a valuations page but that does not seem like a good use of your time. In order to do the above, ideally you would already have a sell-side model to use as a template. Also choose a plain vanilla company like Microsoft unless they have explicitly told you you’ll be looking at financials. If you can build a simple model on MSFT and know how the 3 main pages link up, you will fly through the test to update the model. Is this an entry level position by the way? If so they will not expect you to be able to build a full model yet and some or all of what I’ve suggested may not be necessary.
Thanks Carson - I have about a week and a half. It’s a research associate position, so fairly entry level. They said basically updating a revenue model and forecasting out off a press release and writing some bullets. I’m good with writing the bullets, I just have never really manipulated a model before, and not sure where to start. I have seen sell side models but just not sure where I would be editing information on them. I understand the mechanics but just no the logistics I guess is what I am trying to say. Anything else I should prep for? Thanks again.
In that case definitely build out your own model. Benninga’s book ‘Financial Modeling’ is pretty good and comes with a cd. If you have some sell-side models, you can reference them as templates also.
fxguy, send me an email at firstname.lastname@example.org and I’ll send you a sell side model to look at. It would be good practice for you to try to recreate such a model using inputs from a different company.
Bromion- Can I get a copy of that model too? I’m going to be looking for sell side internships after I get L1 results.
1logic Wrote: ------------------------------------------------------- > Bromion- > > Can I get a copy of that model too? I’m going to > be looking for sell side internships after I get > L1 results. Yes, email me. But this is the last one, the others can be responsible from here.