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Hey guys, I'm in research for a boutique consulting/PE/corp finance co based in the Middle East. Daily tasks (besides industry-specific intelligence) include running FactSet and explaining to dumb fresh grads that you can in fact have negative enterprise value and that it's not a surprise the deal you're looking at has no disclosed multiples because the target is a lovely ISP in Burundi. Currently studying for CFA (level 1 exam in June) and hoping to some day move to banking proper. Anyone using the Thomson Reuters community chat tool?
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Mar 22, 2011 22:29
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| # ¿ Apr 28, 2024 08:58 |
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Its Miller Time posted:edit: Studying for and passing the CFA level 1 is an extra step that's often viewed favorably by bankers recruiting for analyst/associate entry-level positions, it's something that became a lot more common as the competition for these jobs heated up. I'm not sure how much it'll help you make the actual transition. I should have been more clear - if I do decide to move, I'm first and foremost shooting for the research positions, which are, as far as I can see, full of CFAs or at least level 2 candidates. I would actually love to hear from anyone in research in a big bank work.
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Mar 24, 2011 06:18
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Thoogsby posted:Yeah, if you want to get into research a CFA is definitely a must. I thought you were referring to IBD where it would be nearly worthless. Cool. Hey so here's a question. How do bankers generally view research guys? For example, I found that in consulting, it varies between 'highly respected (but underpaid) specialists' to 'worthless admin monkeys, we consultants are so much better'. This highly depends on the team and the individual as well as experience of the consultant with the research guys. Any ideas about banking? What about pay? Where I am now, the fixed pay is slightly better than similar level consultants, PE or corporate finance guys but overall pay is worse because of the variable component.
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Mar 24, 2011 14:34
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Its Miller Time posted:I don't work for a big bank and have no idea about that dynamic. I get PMs. I have a question for everyone: See, that's the whole thing with trying to understand financials of a private company - results will vary depending on the amount of information that is disclosed, your understanding of the industry, your ability to extrapolate and make assumptions based on publicly available information from similar industries and so on. As the gentleman/lady below me pointed out, unless these teams own the stadiums (which i doubt), the amortization of their franchise would be the biggest question mark here, not depreciation. But in reality, without knowing the methodology used by the Forbes guy, you can't really say one way or the other if his assumptions are accurate or not. A quick suggestion - google tells me there are no listed NFL teams due to NFL rules except Green Bay Packers. Apparently these guys release their earnings etc - look that up and see what kind of margins they show then compare with the FT analyst. Disclaimer: I know nothing about NFL. The Capitulator fucked around with this message at 07:44 on Mar 25, 2011 |
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Mar 25, 2011 07:40
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Had a look at the actual Forbes articles and did some back of the excel sheet calculations. Green Bay Packers apparently operate on a 4% EBITDA margin (according to disclosures) whereas Dallas Cowboys, according to Forbes, operate on a 34% margin. I ran EV/EBITDA and EV/REVENUE ratios taking Forbes' 'valuation' as EV (although I am confused about their treatment of debt and am not entirely sure of the methodology). The EV/Revenues came out between 4 and 5, which seems fairly normal but EV/EBITDA was all over the place, including a 103 for Green Bay and a whopping 562.85 for NY Giants. So there's definitely something wrong in one of those denominators.
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Mar 26, 2011 18:48
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Socialism posted:Goodwill is not amortised. But is tested for impairment! 
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Mar 27, 2011 05:47
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Thoogsby posted:Adding the latest M&I post to the OP. Great rundown of the hierarchy in IB. Nice. Just out of curiosity, how frequent/rare do you see guys at 'associate' level without an MBA?
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Apr 23, 2011 09:31
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Another question regarding research. Do you guys have any idea how many companies does a research analyst in a bigger i-bank typically track? As in, if I were to ask about the strategy and ballpark ratios, how many companies can a typical research guy give an informed opinion about (in an elevator without notes etc)? The reason why I'm asking is because we are now rolling out group coverage in our department (this wasn't required previously due to our primarily consulting focus) and we basically got about 20 companies to track plus 3-5 key companies for super-indepth tracking - so basically if in a month or so I should be able to pretty much recite the main income statement figures and valuation multiples plus industry specific KPIs and strategy for a whole bunch of companies I never really looked at. For 3 companies on my list, I should know the main operational KPIs as well. How does this compare with research coverage in investment banking?
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Apr 24, 2011 13:52
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Thoogsby posted:I've been assigned a project to look through the 10 Q/K's of 130 Energy companies to find out their interest-rate and equity derivative perpensity. I think I may have pissed someone off... FactSet? Analyst reports?
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Apr 29, 2011 14:00
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Thoogsby posted:I've got a fully licensed Bloomberg at my desk, but the problem is that reporting for OTC derivatives is extremely light. Data services like FactSet and Bloomberg are great for things like CDS but to my knowledge no service offers the same transparency for what I'm looking for. How about Edgar? I never used it because we don't cover US but I hear you can keyword search the whole thing no? Alternatively, get interns, make them work through the weekend on uploading all the relevant filings in one place then do the search that way. We are working on a corp filing database covering basically our industry because FactSet is great for group-level data but if need to see some very specific stuff (mostly non-financial) in a small unreported footprint, this is the only way to go. Except we don't have interns  and they are paying us real-people money for it.
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May 3, 2011 13:55
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So here's a pickle. I'm looking at replicating CROCI analysis that is currently used by Goldman. Unfortunately, I'm a little short on their methodology. In fact, all I have is this primer and no excel model to start with. The only Goldman model I have with CROCI isn't live so no links to components. I also have a bunch of their reports to 'test' my model plus lots of theory/books on this subject. Has anyone done something like this? Anyone got a CROCI model in excel to share (I'm willing to trade, have access to a couple of bulge portals that are not Goldman so any company models/reports are game)?
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May 3, 2011 18:01
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PurePerfection posted:Have any of you gone into trading without the quant background of a financial engineering, computational finance, or general math/stats program? Was it a struggle to master the work? Did you feel disadvantaged relative to those with quant backgrounds? I did internship rotations in both sales and trading; I'm conflicted about what to do full-time. For what its worth, the couple of traders I semi-know got their quant skills through courses the company paid for. If I remember correctly, the one they did was a 3-day crammer by a local firm. Now, these guys aren't from Goldman or anything but the point is you can actually brush up your quant skills to an acceptable level fairly quickly and 'on the cheap' if you really want tp.
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Jun 23, 2011 06:51
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