EQUITY RESEARCH

CAREERS IN FINANCE
 What Does An
ER Analyst Do?
The primary role of an Equity Research Analyst
is to evaluate and recommend actions on
financial securities. They analyze a company's
financial statements, assessing costs, revenue,
and risk.
Analysts also monitor company events and
gather information to create financial models,
predict future performance, and offer buy, sell,
or hold recommendations. These models rely
on various assumptions, which can vary among
analysts.
 Classification
Of An ER Analyst
#1 Buy Side
Research analysts are available to help
buy-side companies with their investment
needs. Every day, they keep an eye on the
securities and look at how macroeconomic
news affects the long-term performance of
the stocks. They also communicate with the
sell-side research analyst for stock
updates and advice.
 Classification
Of An ER Analyst
#2 Sell-Side
The analysis is carried out to inform the
client of the available sell-side investment
opportunities. To suggest buying or selling
a specific financial security, they analyse
stocks. A brokerage firm or bank's agent or
relationship manager receives these
recommendations through reports written
by the research analyst.
 Career Path
Head of Research
/ Equities

Senior Analyst Senior Analyst Senior Analyst

Associate Associate Associate

Junior Junior Junior Junior Junior Junior

Analyst Analyst Analyst Analyst Analyst Analyst
 Career Path
You are in charge of almost everything as
a junior analyst, including data entry
tasks and creating the business' financial
model. Your main responsibility is to help
the Associate with his daily activities.
The associate oversees one, possibly two,
or even three junior analysts and makes
sure that the senior analyst's results
updates, financial models, and equity
research reports are completed on time.
 Career Path
Senior Analysts are expected to regularly
communicate about their investment
thesis and its justification while speaking
with fund managers on the phone and in
person.
 What Is Tested
In An ER Interview
#1 You should be awesome in Financial
analysis
You are expected to excel at financial ratio
analysis as an analyst. The SEC filings should
be easy for you to fully comprehend, analyse,
and present in Excel.
#2 Excellent Communication Skills
Excellent writing and communication skills are
crucial. Equity analysts should be able to
effectively communicate with their clients and
should be able to publish their investment
reports on a regular basis.
 What Is Tested
In An ER Interview
# 3 Awesome in Financial Modeling
Financial modelling entails estimating the
fair value using DCF Valuation, trading
multiple valuations, and other valuation
tools, and projecting the company's
financials. Be prepared to be an expert at
financial modelling as an equity analyst.
 What Is Tested
In An ER Interview
#4 You should be Great at Excel
Most of the time, especially during earning
seasons (quarterly and annual result
announcements), you will work under
extreme time pressure. Your clients count on
you to complete the analysis quickly and
correctly. You must, therefore, make every
effort to save time. Excel is an expert tool
for equity analysts, who can quickly pull
reports, create financial models, and create
charts.
 Exit
Opportunities
# 1 Get into Buy-Side Roles
In this situation, you would essentially
work for the portfolio or hedge fund
managers. Both require a similar skill set
because you analyse investments and
provide recommendations. An even
better way of life and investing are
available on the buy side.
 Exit
Opportunities
#2 Get into Investment Banking
Numerous research analysts transition
into positions in investment banking,
such as IPO, M&A, etc. Due to its
dynamic nature, investment banking
offers a lucrative career and shares
many of the same skills as equity
research.
 Exit
Opportunities
#3 Get into Private Equity
Another exit strategy might be to enter
private equity. However, this can be
challenging because equity research jobs
don't require you to work on transactions, so
the profile is slightly different. This does not
imply that admission to PE is impossible. As
a research analyst, you would be
knowledgeable about investment research,
but this would only apply to private
companies rather than publicly traded ones.
CAREER EDGE

CONSULTING FELLOWSHIP
Mentors from

2.5 or 6 months, 10 mentors, and 30+ hours of live

mentorship on Consulting careers, CV making
(including 1:1 edits), Guesstimates & Case Interviews.
Rigorous interview practise through real-time
guesstimates solving & buddy teams for mock cases.

Placement Assistance through employee referrals by

our MBB & Dalberg mentors. Regular job updates from
consulting firms. Industry Breakdown for cases.

Live case project (& certificate) with a real life client &
business problem. CV templates & interview
preparation resources along with 1:1 Mentorship.

SIGN UP (Registration Link is in

the comments)