Investor Analyst Blueprint
Integrated financial modelling, the equity research process, valuation in depth and the preparation of an investment memorandum to institutional standard.
This Blueprint addresses the core responsibilities of the equity research analyst. Where Investor Foundations introduced the analysis of a business, this Blueprint develops the work product expected of a professional analyst: an integrated financial model, a defensible valuation, and an investment memorandum capable of withstanding scrutiny by an investment committee.
The Blueprint runs for ten weeks at approximately five hours per week. Students select a single company at the outset and develop it from initial research to a complete research report. Each module concludes with a required deliverable.
By the end you will be able to
- Construct an integrated three-statement financial model that balances, responds correctly to changes in assumptions, and can be audited by a third party
- Conduct an industry analysis that identifies the distribution of economic profit and its causes
- Value a business by three methods and reconcile the differences between them
- Size a position with reference to a fully valued downside scenario
- Prepare an investment memorandum suitable for presentation to an investment committee
- Defend an investment recommendation under critical examination
Curriculum
The construction of integrated three-statement financial models that balance, respond correctly to changes in assumptions and can be reviewed by a third party.
The generation of investment ideas, their initial screening, and the in-depth research of those that merit further work.
Discounted cash flow, sum-of-the-parts and asset-based valuation, and the reconciliation of divergent results.
Position sizing, the investment memorandum, and the defence of a recommendation before an investment committee.