Survival Kit for an Equity Analyst - The Essentials You Must Know

Discover a one-of-a-kind blueprint to equity analyst success from an industry leader
 
In Survival Kit for an Equity Analyst: The Essentials You Must Know, veteran analyst Shin Horie delivers a must-read, practical guide on the analysis of companies and industries. The book offers a guide to conducting industry-level analysis from a global perspective, with a particular emphasis on adjustments necessary for covering companies in emerging markets. Readers will also get:
* A robust background on the basic process flow of company analysis and valuation
* Guidelines for examining earnings drivers in major industries
* Tips on the qualitative profiling of companies and how to dig deeper to find nuance that financial statements don't express
 
Perfect for early-career equity analysts themselves, as well as corporate managers who seek to understand how their organisations will be scrutinized and examined by finance professionals, Survival Kit for an Equity Analyst offers readers an insightful narrative on the necessary ingredients for success in this demanding field.

List of contents

Preface: Why I Wanted to Write This Book xi
 
Introduction: How to Approach Company Analysis xv
 
List of Acronyms xix
 
Part I: Lessons From the Past: My Story as an Analyst 1
 
From Fish Cakes to Computer Numerical Control (1988-1995) 2
 
Not Just a Japanese Tourist - Becoming a China H-share Analyst (1996-1998) 5
 
A Truly Global Research Experience - Semiconductor Analyst (1998-2007) 7
 
New Lexicon: Clinical Trial, Cap Rate, Embedded Value, Metal Spread (2008-2013) 11
 
Importing DM Experience to EM: From Japan to Asia-Pacific (2014-2017) 13
 
Connecting the Dots: From Asia to Global (2018-now) 16
 
Part II: Laying the Groundwork 19
 
Chapter 1: Understand the 'Character' of the Industry 21
 
Six Basic Steps for Forecasting Industry Growth 22
 
TAM Growth Rate 27
 
Ten Additional Angles for Testing Forecasts 28
 
Chapter 2: Assess the Earnings Drivers in Different Industries 37
 
Hyper Growth - Internet, Fintech, Biotechnology 45
 
Secular Growth - Software, Medical Technology 48
 
Cyclical - Capital Goods, Transport, Energy,
 
Commodities, Chemicals, Autos 49
 
Cyclical Growth - Semiconductor, Electronic Components, Technology Hardware, Clean Energy 54
 
Stable - Consumer Staples, Retail, Consumer Discretionary, Pharmaceutical, Media, Business Services 58
 
Interest Rate Sensitive - REITs, Property Developers, Banks, Insurance 63
 
Regulated - Utilities, Telecoms 66
 
Chapter 3: Identify the 'Personality' of the Company 71
 
Product and Service 71
 
Origin and History 72
 
Management Profile 73
 
Ownership Structure 73
 
Value Chain 74
 
Competitive Moat 75
 
Track Record of Strategic Decisions 76
 
Corporate Culture by Country 77
 
Earnings Guidance Track Record 77
 
Controversy Record 78
 
Management Quality - A Framework 78
 
Part III: Analyse and Apply the Findings 83
 
Chapter 4: Put Findings into the Earnings Model 85
 
Segmental Revenue Forecast 87
 
Income Statement Forecast 88
 
Balance Sheet Forecast 95
 
Cash Flow Forecast 98
 
How to Put Cyclicality into Long-term Earnings Forecasts 100
 
Quarterly Forecasts can be Helpful 100
 
A Birdseye View is Helpful 101
 
Financial and Property Sectors are Unique 101
 
Chapter 5: Summarize All Thoughts 105
 
A Suggested Method for Creating a Practical Scorecard 105
 
Chapter 6: Find the Appropriate Valuation Framework 109
 
Hyper Growth - Internet, Biotechnology 112
 
Secular Growth - Software, Medical Technology 114
 
Cyclical - Capital Goods, Transport, Energy,
 
Commodities, Chemicals, Autos 115
 
Cyclical Growth - Semiconductor, Technology Hardware, Clean Energy 116
 
Stable - Consumer Staples, Retail, Consumer Discretionary, Pharmaceutical, Media, Business Services 117
 
Interest Rate Sensitive - Banks, Emerging Market Banks, Insurance, Property, REITs 118
 
Regulated - Utilities, Telecoms 120
 
Conglomerates 121
 
Additional Considerations on Valuation 124
 
Chapter 7: Differentiation versus Street 131
 
Is the View Actually Different? 131
 
Where is the Difference? 132
 
What is Driving the Difference? 133
 
Value of an Undifferentiated Conclusion 134
 
Part IV: What to Research and How to Power the Analysis 135
 
Chapter 8: How to Generate Exciting Ideas 137
 
1: Burning Questions 137
 
2: Products to Solve Problems 138
 
3: For

About the author

SHIN HORIE is cohead of Global Single-Name Research (Equity and Credit Research) for Goldman Sachs and is a board member of Goldman Sachs Asia LLC. He is the former director of the Japan Equity Research Department and the former manager of the Korea and Taiwan Equity Research Departments.

Summary

Discover a one-of-a-kind blueprint to equity analyst success from an industry leader

In Survival Kit for an Equity Analyst: The Essentials You Must Know, veteran analyst Shin Horie delivers a must-read, practical guide on the analysis of companies and industries. The book offers a guide to conducting industry-level analysis from a global perspective, with a particular emphasis on adjustments necessary for covering companies in emerging markets. Readers will also get:
* A robust background on the basic process flow of company analysis and valuation
* Guidelines for examining earnings drivers in major industries
* Tips on the qualitative profiling of companies and how to dig deeper to find nuance that financial statements don't express

Perfect for early-career equity analysts themselves, as well as corporate managers who seek to understand how their organisations will be scrutinized and examined by finance professionals, Survival Kit for an Equity Analyst offers readers an insightful narrative on the necessary ingredients for success in this demanding field.

Product details

• Authors: S Horie, Shin Horie
• Publisher: Wiley, John and Sons Ltd
• Languages: English
• Product format: Hardback
• Released: 30.09.2021
• EAN: 9781119822448
• ISBN: 978-1-119-82244-8
• No. of pages: 208
• Subjects: Natural sciences, medicine, IT, technology > Natural sciences (general); Social sciences, law, business > Business > Business administration; Rechnungswesen, Bewertung, Finanzwesen, Accounting, Valuation, Evaluierung, Allg. Finanz- u. Anlagewesen, Finance & Investments, Finanz- u. Anlagewesen, Evaluation & Research Methods, Evaluierung u. Researchmethoden