COMPREHENSIVE CAREER GUIDE

FOR
MBA FINANCE STUDENTS

Becoming an Equity Analyst

Domain Knowledge, Skills & Competencies
for Success in Investment Management

Prepared by

Prof. V. Ravichandran
Practitioner of Finance
Bangalore

The Mountain Path

World of Finance

Your Comprehensive Roadmap to Excellence

in Equity Research and Portfolio Management
November 13, 2025
Contents

Executive Summary 1
1 Understanding the Equity Analyst Role 2
1.1 Role Denition and Responsibilities . . . . . . . . . . . . . . . . . . . . . . 2
1.1.1 Core Responsibilities . . . . . . . . . . . . . . . . . . . . . . . . . . 2
[Link] Company Analysis and Valuation . . . . . . . . . . . . . . 2
[Link] Industry and Sector Research . . . . . . . . . . . . . . . . 2
[Link] Investment Recommendations . . . . . . . . . . . . . . . . 3
1.2 Career Paths and Progression . . . . . . . . . . . . . . . . . . . . . . . . . 3
1.2.1 Entry-Level Positions . . . . . . . . . . . . . . . . . . . . . . . . . . 3
1.2.2 Mid-Level Progression . . . . . . . . . . . . . . . . . . . . . . . . . 3
1.2.3 Senior Positions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
2 Essential Domain Knowledge 5
2.1 Financial Statement Analysis . . . . . . . . . . . . . . . . . . . . . . . . . 5
2.1.1 Income Statement Mastery . . . . . . . . . . . . . . . . . . . . . . . 5
[Link] Revenue Recognition and Quality . . . . . . . . . . . . . . 5
[Link] Cost Structure Analysis . . . . . . . . . . . . . . . . . . . 5
2.1.2 Balance Sheet Analysis . . . . . . . . . . . . . . . . . . . . . . . . . 5
[Link] Asset Quality Assessment . . . . . . . . . . . . . . . . . . 5
[Link] Capital Structure Optimization . . . . . . . . . . . . . . . 6
2.1.3 Cash Flow Statement Analysis . . . . . . . . . . . . . . . . . . . . . 6
[Link] Operating Cash Flow Quality . . . . . . . . . . . . . . . . 6
[Link] Capital Allocation Decisions . . . . . . . . . . . . . . . . . 6
2.2 Valuation Methodologies . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
2.2.1 Discounted Cash Flow (DCF) Analysis . . . . . . . . . . . . . . . . 6
[Link] Building Robust DCF Models . . . . . . . . . . . . . . . . 6
[Link] Key Assumptions and Sensitivities . . . . . . . . . . . . . 7
2.2.2 Relative Valuation Techniques . . . . . . . . . . . . . . . . . . . . . 7
[Link] Multiple-Based Valuation . . . . . . . . . . . . . . . . . . 7
[Link] Comparable Company Analysis . . . . . . . . . . . . . . . 7
2.2.3 Advanced Valuation Techniques . . . . . . . . . . . . . . . . . . . . 8
[Link] Sum-of-the-Parts (SOTP) Valuation . . . . . . . . . . . . 8
[Link] Option-Based Valuation . . . . . . . . . . . . . . . . . . . 8
3 Technical Skills and Tools 9
3.1 Financial Modeling Excellence . . . . . . . . . . . . . . . . . . . . . . . . . 9
3.1.1 Excel Mastery . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

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[Link] Advanced Excel Techniques . . . . . . . . . . . . . . . . . 9

[Link] Model Architecture Best Practices . . . . . . . . . . . . . 9
3.1.2 Programming and Automation . . . . . . . . . . . . . . . . . . . . . 10
[Link] Python for Financial Analysis . . . . . . . . . . . . . . . . 10
[Link] VBA for Excel Automation . . . . . . . . . . . . . . . . . 10
3.2 Data Analytics and Visualization . . . . . . . . . . . . . . . . . . . . . . . 10
3.2.1 Business Intelligence Tools . . . . . . . . . . . . . . . . . . . . . . . 10
[Link] Tableau and Power BI . . . . . . . . . . . . . . . . . . . . 10
[Link] Bloomberg Terminal Prociency . . . . . . . . . . . . . . 11
3.2.2 Statistical Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
[Link] Descriptive and Inferential Statistics . . . . . . . . . . . . 11
[Link] Machine Learning Applications . . . . . . . . . . . . . . . 11
4 Industry and Sector Expertise 12
4.1 Sector-Specic Analysis Frameworks . . . . . . . . . . . . . . . . . . . . . 12
4.1.1 Technology Sector . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
[Link] Key Metrics and KPIs . . . . . . . . . . . . . . . . . . . . 12
[Link] Valuation Considerations . . . . . . . . . . . . . . . . . . 12
4.1.2 Financial Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
[Link] Banking Analysis . . . . . . . . . . . . . . . . . . . . . . . 13
[Link] Insurance Sector . . . . . . . . . . . . . . . . . . . . . . . 13
4.1.3 Healthcare and Pharmaceuticals . . . . . . . . . . . . . . . . . . . . 13
[Link] Pharmaceutical Companies . . . . . . . . . . . . . . . . . 13
[Link] Healthcare Services . . . . . . . . . . . . . . . . . . . . . . 13
4.2 Macroeconomic Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
4.2.1 Economic Indicators and Market Impact . . . . . . . . . . . . . . . 14
[Link] Leading Indicators . . . . . . . . . . . . . . . . . . . . . . 14
[Link] Central Bank Policies . . . . . . . . . . . . . . . . . . . . 14
4.2.2 Geopolitical Risk Assessment . . . . . . . . . . . . . . . . . . . . . 14
[Link] Trade and Tari Analysis . . . . . . . . . . . . . . . . . . 14
[Link] Regulatory Environment . . . . . . . . . . . . . . . . . . . 14
5 Professional Skills and Competencies 15
5.1 Communication and Presentation Skills . . . . . . . . . . . . . . . . . . . . 15
5.1.1 Written Communication . . . . . . . . . . . . . . . . . . . . . . . . 15
[Link] Research Report Writing . . . . . . . . . . . . . . . . . . . 15
[Link] Dierent Report Formats . . . . . . . . . . . . . . . . . . 15
5.1.2 Oral Presentation Skills . . . . . . . . . . . . . . . . . . . . . . . . 15
[Link] Client Presentations . . . . . . . . . . . . . . . . . . . . . 15
[Link] Internal Communications . . . . . . . . . . . . . . . . . . 16
5.2 Critical Thinking and Problem Solving . . . . . . . . . . . . . . . . . . . . 16
5.2.1 Analytical Frameworks . . . . . . . . . . . . . . . . . . . . . . . . . 16
[Link] Structured Problem Solving . . . . . . . . . . . . . . . . . 16
[Link] Information Synthesis . . . . . . . . . . . . . . . . . . . . 16
5.2.2 Ethical Considerations . . . . . . . . . . . . . . . . . . . . . . . . . 16
[Link] Professional Ethics . . . . . . . . . . . . . . . . . . . . . . 16
[Link] ESG Integration . . . . . . . . . . . . . . . . . . . . . . . 17

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6 Professional Certications and Continuous Learning 18

6.1 Essential Certications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
6.1.1 CFA (Chartered Financial Analyst) . . . . . . . . . . . . . . . . . . 18
[Link] Program Overview . . . . . . . . . . . . . . . . . . . . . . 18
[Link] Preparation Strategy . . . . . . . . . . . . . . . . . . . . . 19
6.1.2 FRM (Financial Risk Manager) . . . . . . . . . . . . . . . . . . . . 19
[Link] Program Benets . . . . . . . . . . . . . . . . . . . . . . . 19
[Link] Career Enhancement . . . . . . . . . . . . . . . . . . . . . 19
6.2 Continuous Learning Pathways . . . . . . . . . . . . . . . . . . . . . . . . 20
6.2.1 Technical Skills Development . . . . . . . . . . . . . . . . . . . . . 20
[Link] Online Learning Platforms . . . . . . . . . . . . . . . . . . 20
[Link] Industry Resources . . . . . . . . . . . . . . . . . . . . . . 20
6.2.2 Networking and Professional Development . . . . . . . . . . . . . . 20
[Link] Professional Associations . . . . . . . . . . . . . . . . . . . 20
[Link] Mentorship and Coaching . . . . . . . . . . . . . . . . . . 20
7 Interview Preparation and Career Strategy 21
7.1 Technical Interview Preparation . . . . . . . . . . . . . . . . . . . . . . . . 21
7.1.1 Common Technical Questions . . . . . . . . . . . . . . . . . . . . . 21
[Link] Valuation Questions . . . . . . . . . . . . . . . . . . . . . 21
[Link] Financial Statement Analysis . . . . . . . . . . . . . . . . 22
7.1.2 Case Study Preparation . . . . . . . . . . . . . . . . . . . . . . . . 22
[Link] Stock Pitch Framework . . . . . . . . . . . . . . . . . . . 22
[Link] Market Views and Current Events . . . . . . . . . . . . . 22
7.2 Behavioral Interview Excellence . . . . . . . . . . . . . . . . . . . . . . . . 22
7.2.1 STAR Method Application . . . . . . . . . . . . . . . . . . . . . . . 22
[Link] Situation-Task-Action-Result Framework . . . . . . . . . . 22
[Link] Common Behavioral Questions . . . . . . . . . . . . . . . 23
7.2.2 Firm-Specic Preparation . . . . . . . . . . . . . . . . . . . . . . . 23
[Link] Research About Target Firms . . . . . . . . . . . . . . . . 23
[Link] Questions to Ask Interviewers . . . . . . . . . . . . . . . . 23
8 Building Your Professional Portfolio 24
8.1 Creating Sample Work . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
8.1.1 Equity Research Reports . . . . . . . . . . . . . . . . . . . . . . . . 24
[Link] Report Components . . . . . . . . . . . . . . . . . . . . . 24
[Link] Best Practices . . . . . . . . . . . . . . . . . . . . . . . . . 25
8.1.2 Financial Models . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
[Link] Model Portfolio . . . . . . . . . . . . . . . . . . . . . . . . 25
[Link] Model Documentation . . . . . . . . . . . . . . . . . . . . 26
8.2 Online Presence and Branding . . . . . . . . . . . . . . . . . . . . . . . . . 26
8.2.1 LinkedIn Optimization . . . . . . . . . . . . . . . . . . . . . . . . . 27
[Link] Prole Components . . . . . . . . . . . . . . . . . . . . . 27
[Link] Network Building . . . . . . . . . . . . . . . . . . . . . . . 27
8.2.2 Digital Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
[Link] Personal Website/Blog . . . . . . . . . . . . . . . . . . . . 27
[Link] GitHub Repository . . . . . . . . . . . . . . . . . . . . . . 27

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9 Industry Trends and Future Outlook 28

9.1 Technology Disruption in Equity Research . . . . . . . . . . . . . . . . . . 28
9.1.1 Articial Intelligence and Machine Learning . . . . . . . . . . . . . 28
[Link] Current Applications . . . . . . . . . . . . . . . . . . . . . 28
[Link] Future Implications . . . . . . . . . . . . . . . . . . . . . . 28
9.1.2 Alternative Data Integration . . . . . . . . . . . . . . . . . . . . . . 28
[Link] Data Sources . . . . . . . . . . . . . . . . . . . . . . . . . 28
[Link] Implementation Challenges . . . . . . . . . . . . . . . . . 29
9.2 Evolving Regulatory Landscape . . . . . . . . . . . . . . . . . . . . . . . . 29
9.2.1 MiFID II and Global Implications . . . . . . . . . . . . . . . . . . . 29
[Link] Research Unbundling . . . . . . . . . . . . . . . . . . . . . 29
[Link] Career Implications . . . . . . . . . . . . . . . . . . . . . . 29
9.2.2 ESG and Sustainable Investing . . . . . . . . . . . . . . . . . . . . 29
[Link] Integration Requirements . . . . . . . . . . . . . . . . . . 29
[Link] Reporting Standards . . . . . . . . . . . . . . . . . . . . . 30
10 Conclusion and Action Plan 31
10.1 Summary of Key Success Factors . . . . . . . . . . . . . . . . . . . . . . . 31
10.1.1 Technical Excellence . . . . . . . . . . . . . . . . . . . . . . . . . . 31
10.1.2 Professional Development . . . . . . . . . . . . . . . . . . . . . . . 31
10.2 90-Day Action Plan for MBA Students . . . . . . . . . . . . . . . . . . . . 32
10.2.1 Days 1-30: Foundation Building . . . . . . . . . . . . . . . . . . . . 32
10.2.2 Days 31-60: Skill Development . . . . . . . . . . . . . . . . . . . . . 32
10.2.3 Days 61-90: Application and Networking . . . . . . . . . . . . . . . 33
10.3 Long-term Career Management . . . . . . . . . . . . . . . . . . . . . . . . 33
10.3.1 Year 1-2: Establish Foundation . . . . . . . . . . . . . . . . . . . . 33
10.3.2 Year 3-5: Build Expertise . . . . . . . . . . . . . . . . . . . . . . . 33
10.3.3 Year 5+: Leadership Development . . . . . . . . . . . . . . . . . . 33
A Essential Resources and Tools 36
A.1 Financial Databases and Platforms . . . . . . . . . . . . . . . . . . . . . . 36
A.2 Free and Low-Cost Resources . . . . . . . . . . . . . . . . . . . . . . . . . 36
A.3 Professional Development Resources . . . . . . . . . . . . . . . . . . . . . . 36
B Sample Interview Questions and Answers 38
B.1 Technical Questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
B.1.1 Question: Walk me through the three nancial statements . . . . . 38
B.1.2 Question: How would you value a company? . . . . . . . . . . . . . 38
B.2 Behavioral Questions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
B.2.1 Question: Why equity research? . . . . . . . . . . . . . . . . . . . . 39
B.2.2 Question: Tell me about a time you had to analyze complex infor-
mation under time pressure . . . . . . . . . . . . . . . . . . . . . . 40
C Financial Modeling Templates and Best Practices 41
C.1 DCF Model Structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
C.1.1 Input Assumptions Tab . . . . . . . . . . . . . . . . . . . . . . . . 41
C.1.2 Financial Projections . . . . . . . . . . . . . . . . . . . . . . . . . . 41

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C.1.3 Valuation Output . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42

C.2 Model Best Practices Checklist . . . . . . . . . . . . . . . . . . . . . . . . 42
C.2.1 Design Principles . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
C.2.2 Formula Best Practices . . . . . . . . . . . . . . . . . . . . . . . . . 42
C.2.3 Formatting Standards . . . . . . . . . . . . . . . . . . . . . . . . . 42

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List of Tables
1.1 Equity Analyst Career Progression Timeline . . . . . . . . . . . . . . . . . 3
2.1 Comparison of Valuation Methodologies . . . . . . . . . . . . . . . . . . . 7
3.1 Essential Excel Functions for Financial Analysis . . . . . . . . . . . . . . . 9
4.1 Sector-Specic Key Performance Indicators . . . . . . . . . . . . . . . . . . 12
6.1 Core Skills Assessment Matrix for Equity Analysts . . . . . . . . . . . . . 19
8.1 Key Financial Ratios for Equity Analysis . . . . . . . . . . . . . . . . . . . 25
8.2 Types of Financial Models for Equity Analysis . . . . . . . . . . . . . . . . 26
10.1 Structured 90-Day Action Plan for Equity Analyst Preparation . . . . . . . 32

vi
List of Figures
1.1 Typical Career Progression Path for Equity Analysts . . . . . . . . . . . . 4
3.1 Financial Model Architecture Framework . . . . . . . . . . . . . . . . . . . 10
6.1 CFA Program Structure and Timeline . . . . . . . . . . . . . . . . . . . . . 18
7.1 Comprehensive Interview Preparation Framework . . . . . . . . . . . . . . 21
8.1 Structure of Professional Equity Research Report . . . . . . . . . . . . . . 24
8.2 Integrated Analytical Framework for Equity Research . . . . . . . . . . . . 26

vii
Executive Summary

This comprehensive guide serves as a denitive roadmap for MBA Finance students as-
piring to build successful careers as Equity Analysts in investment management rms,
portfolio management companies, and mutual fund organizations. The document system-
atically outlines the critical domain knowledge, technical skills, and professional compe-
tencies required to excel in this highly competitive eld.
The equity analyst role stands at the intersection of nancial analysis, market research,
and investment strategy. Success in this eld demands a unique blend of analytical rigor,
market intuition, and communication excellence. This guide provides a structured frame-
work for developing these capabilities, ensuring students are well-prepared for both the
recruitment process and long-term career success.
Key areas covered include:
ˆ Fundamental analysis techniques and valuation methodologies
ˆ Industry and sector analysis frameworks
ˆ Financial modeling and quantitative skills
ˆ Risk assessment and portfolio theory
ˆ Professional certications and continuous learning pathways
ˆ Interview preparation and career development strategies

1
Chapter 1
Understanding the Equity Analyst Role

1.1 Role Denition and Responsibilities

An equity analyst serves as a critical bridge between raw nancial data and actionable
investment insights. The role encompasses comprehensive analysis of publicly traded
companies, industries, and market trends to provide investment recommendations that
drive portfolio performance.

1.1.1 Core Responsibilities

[Link] Company Analysis and Valuation
Equity analysts conduct deep-dive analyses of companies, examining nancial statements,
business models, competitive positioning, and growth prospects. This involves:
ˆ Analyzing historical nancial performance and trends
ˆ Building detailed nancial models to project future performance
ˆ Conducting valuation using multiple methodologies (DCF, relative valuation, asset-
based)
ˆ Assessing management quality and corporate governance
ˆ Evaluating competitive advantages and market positioning

[Link] Industry and Sector Research

Understanding industry dynamics is crucial for contextualizing company performance:
ˆ Tracking industry trends and technological disruptions
ˆ Analyzing regulatory changes and their impact
ˆ Monitoring competitive landscapes and market share dynamics
ˆ Identifying sector rotation opportunities

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The Mountain Path - World of Finance Equity Analyst Career Guide

ˆ Assessing macroeconomic impacts on specic industries

[Link] Investment Recommendations

The ultimate output of equity research is actionable investment advice:
ˆ Generating Buy/Hold/Sell recommendations with target prices
ˆ Developing investment theses with clear catalysts
ˆ Creating risk-reward proles for investments
ˆ Constructing sector allocation strategies
ˆ Providing timely updates based on new information

1.2 Career Paths and Progression

1.2.1 Entry-Level Positions
ˆ Research Associate: Supporting senior analysts with data collection and basic mod-
eling
ˆ Junior Analyst: Covering smaller companies or assisting with sector coverage
ˆ Investment Analyst Trainee: Rotational programs across dierent sectors

1.2.2 Mid-Level Progression

ˆ Senior Analyst: Independent coverage of companies and sectors
ˆ Sector Specialist: Deep expertise in specic industries
ˆ Lead Analyst: Managing junior team members and major research projects

1.2.3 Senior Positions

ˆ Director of Research: Overseeing entire research departments
ˆ Portfolio Manager: Transitioning to active investment management
ˆ Chief Investment Ocer: Strategic oversight of investment processes
Table 1.1: Equity Analyst Career Progression Timeline
Position Years Typical Salary (USD) Key Requirements
Research Associate 0-2 $60k-$85k MBA, Strong Excel skills
Junior Analyst 2-4 $85k-$120k CFA Level I/II, Sector knowledge
Senior Analyst 4-7 $120k-$180k CFA Charter, Coverage experience
Sector Head 7-10 $180k-$300k Team management, Deep expertise
Director of Research 10+ $300k+ Leadership, Strategic vision

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Seniority
Director
Sector Head
Sr. Analyst
Jr. Analyst
Associate

Years of Experience
Figure 1.1: Typical Career Progression Path for Equity Analysts

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Chapter 2
Essential Domain Knowledge

2.1 Financial Statement Analysis

2.1.1 Income Statement Mastery
Understanding the income statement requires more than surface-level knowledge:

[Link] Revenue Recognition and Quality

ˆ Understanding dierent revenue recognition methods (IFRS vs. GAAP)
ˆ Identifying aggressive revenue recognition practices
ˆ Analyzing revenue sustainability and recurring vs. non-recurring components
ˆ Assessing customer concentration and contract backlog
ˆ Understanding subscription models vs. transactional revenue

[Link] Cost Structure Analysis

ˆ Fixed vs. variable cost decomposition
ˆ Operating leverage implications
ˆ Cost eciency metrics and benchmarking
ˆ Understanding economies of scale and scope
ˆ Analyzing pricing power and margin sustainability

2.1.2 Balance Sheet Analysis

[Link] Asset Quality Assessment
ˆ Working capital management eciency
ˆ Asset turnover and utilization metrics

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The Mountain Path - World of Finance Equity Analyst Career Guide

ˆ Intangible asset valuation and impairment risks

ˆ O-balance sheet items and contingent liabilities
ˆ Understanding asset-light vs. asset-heavy business models

[Link] Capital Structure Optimization

ˆ Debt capacity and coverage ratios
ˆ Cost of capital calculations (WACC)
ˆ Optimal capital structure theories
ˆ Credit rating implications
ˆ Renancing risks and maturity proles

2.1.3 Cash Flow Statement Analysis

[Link] Operating Cash Flow Quality
ˆ Cash conversion cycles
ˆ Free cash ow generation and sustainability
ˆ Working capital dynamics
ˆ Cash ow vs. earnings quality
ˆ Identifying cash ow manipulation

[Link] Capital Allocation Decisions

ˆ Capital expenditure eciency (ROIC)
ˆ M&A track record and integration success
ˆ Dividend policy and share buyback analysis
ˆ Growth vs. return of capital trade-os
ˆ Understanding management incentives

2.2 Valuation Methodologies

2.2.1 Discounted Cash Flow (DCF) Analysis
[Link] Building Robust DCF Models
ˆ Revenue forecasting using multiple approaches
ˆ Operating margin progression modeling
ˆ Working capital normalization

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ˆ Capital expenditure projections

ˆ Terminal value calculation methods

[Link] Key Assumptions and Sensitivities

ˆ Discount rate determination (WACC components)
ˆ Growth rate assumptions and sustainability
ˆ Scenario analysis and Monte Carlo simulations
ˆ Understanding model limitations
ˆ Incorporating real options valuation

2.2.2 Relative Valuation Techniques

[Link] Multiple-Based Valuation
ˆ P/E, EV/EBITDA, P/B, P/S ratios
ˆ Industry-specic multiples
ˆ Adjusting for growth dierentials (PEG ratio)
ˆ Normalizing for cyclicality
ˆ Cross-border valuation adjustments

[Link] Comparable Company Analysis

ˆ Identifying appropriate peer groups
ˆ Adjusting for size, growth, and risk dierences
ˆ Understanding multiple dispersion
ˆ Relative valuation bands and historical context
ˆ M&A transaction comparables

Table 2.1: Comparison of Valuation Methodologies

Method Best Used For Key Advantages Limitations
DCF Analysis Stable cash ow com- Intrinsic value, De- Assumption sen-
panies tailed sitive
P/E Multiple Mature companies Simple, Widely used Earnings quality
issues
EV/EBITDA Capital-intensive Cross-border compari- Ignores capex
rms son needs
P/B Ratio Financial institutions Asset-based Intangible assets
PEG Ratio Growth companies Growth-adjusted Growth uncer-
tainty

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2.2.3 Advanced Valuation Techniques

[Link] Sum-of-the-Parts (SOTP) Valuation
ˆ Segment-level analysis and valuation
ˆ Conglomerate discounts and holding company structures
ˆ Hidden asset identication
ˆ Subsidiary stake valuation
ˆ Break-up value analysis

[Link] Option-Based Valuation

ˆ Real options in growth companies
ˆ Convertible bond valuation
ˆ Employee stock option dilution
ˆ Warrant and rights valuation
ˆ Contingent value rights

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Chapter 3
Technical Skills and Tools

3.1 Financial Modeling Excellence

3.1.1 Excel Mastery
[Link] Advanced Excel Techniques
ˆ Complex nancial functions (XNPV, XIRR, MIRR)
ˆ Array formulas and dynamic arrays
ˆ Data validation and error checking
ˆ Scenario managers and data tables
ˆ Power Query and Power Pivot

Table 3.1: Essential Excel Functions for Financial Analysis

Function Category Application
XNPV, XIRR Valuation Irregular cash ow analysis
INDEX, MATCH Lookup Dynamic data retrieval
SUMPRODUCT Analysis Weighted average calcula-
tions
OFFSET Dynamic Rolling calculations
VLOOKUP, HLOOKUP Search Data matching and retrieval
IF, IFERROR Logic Error handling and condi-
tions

[Link] Model Architecture Best Practices

ˆ Modular model design
ˆ Assumption centralization
ˆ Error-proong and circuit breakers

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The Mountain Path - World of Finance Equity Analyst Career Guide

ˆ Version control and documentation

ˆ Model auditing techniques

Inputs
Assumptions Processing
Calculations Outputs
Valuation
Historical Data Projections Dashboard

Checks
Error Checks
Figure 3.1: Financial Model Architecture Framework

3.1.2 Programming and Automation

[Link] Python for Financial Analysis
ˆ Pandas for data manipulation
ˆ NumPy for numerical computing
ˆ Matplotlib and Seaborn for visualization
ˆ Scikit-learn for predictive modeling
ˆ API integration for data retrieval

[Link] VBA for Excel Automation

ˆ Macro recording and editing
ˆ Custom functions (UDFs)
ˆ Userforms for model interfaces
ˆ Automating repetitive tasks
ˆ Error handling and debugging

3.2 Data Analytics and Visualization

3.2.1 Business Intelligence Tools
[Link] Tableau and Power BI
ˆ Creating interactive dashboards
ˆ Connecting to multiple data sources
ˆ Calculated elds and parameters
ˆ Storytelling with data

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ˆ Publishing and sharing insights

[Link] Bloomberg Terminal Prociency

ˆ Equity screening (EQS)
ˆ Financial analysis (FA)
ˆ Relative value (RV)
ˆ News and research (N, BRC)
ˆ Excel API integration

3.2.2 Statistical Analysis

[Link] Descriptive and Inferential Statistics
ˆ Distribution analysis and normality testing
ˆ Hypothesis testing for investment decisions
ˆ Correlation and regression analysis
ˆ Time series analysis and forecasting
ˆ Risk metrics (VaR, CVaR, Sharpe ratio)

[Link] Machine Learning Applications

ˆ Factor models and PCA
ˆ Classication for stock selection
ˆ Clustering for peer group analysis
ˆ Natural language processing for sentiment
ˆ Neural networks for pattern recognition

Prof. V. Ravichandran Page 11 of 43 Practitioner of Finance

Chapter 4
Industry and Sector Expertise

4.1 Sector-Specic Analysis Frameworks

4.1.1 Technology Sector
[Link] Key Metrics and KPIs
ˆ SaaS metrics (ARR, CAC, LTV, churn)
ˆ Platform economics and network eects
ˆ R&D eciency and innovation cycles
ˆ Competitive moats in technology
ˆ Disruption risk assessment

Table 4.1: Sector-Specic Key Performance Indicators

Sector Key Metrics Valuation Multiples
Technology ARR, CAC, LTV, Churn Rate, EV/Sales, EV/ARR
GMV
Banking NIM, ROE, CET1 Ratio, NPL P/B, P/TBV
Ratio
Retail Same-store sales, Inventory EV/EBITDA, P/S
turnover
Healthcare Pipeline value, R&D intensity P/E, EV/EBITDA
Real Estate FFO, NOI, Occupancy rate P/FFO, EV/EBITDA

[Link] Valuation Considerations

ˆ Growth vs. protability trade-os
ˆ TAM (Total Addressable Market) analysis
ˆ Technology adoption curves

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The Mountain Path - World of Finance Equity Analyst Career Guide

ˆ Regulatory risks (antitrust, data privacy)

ˆ International expansion opportunities

4.1.2 Financial Services

[Link] Banking Analysis
ˆ Net interest margin dynamics
ˆ Asset quality and NPL ratios
ˆ Capital adequacy (Basel III)
ˆ Fee income sustainability
ˆ Digital transformation impact

[Link] Insurance Sector

ˆ Combined ratios and underwriting cycles
ˆ Investment portfolio analysis
ˆ Reserve adequacy
ˆ Catastrophe risk modeling
ˆ Embedded value calculations

4.1.3 Healthcare and Pharmaceuticals

[Link] Pharmaceutical Companies
ˆ Pipeline valuation and probability of success
ˆ Patent cli analysis
ˆ Pricing power and reimbursement trends
ˆ Biosimilar competition
ˆ M&A and licensing strategies

[Link] Healthcare Services

ˆ Utilization trends and demographics
ˆ Reimbursement rate changes
ˆ Value-based care transitions
ˆ Technology adoption (telehealth)
ˆ Regulatory compliance costs

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4.2 Macroeconomic Analysis

4.2.1 Economic Indicators and Market Impact
[Link] Leading Indicators
ˆ Yield curve analysis and recession signals
ˆ PMI and condence indices
ˆ Housing starts and building permits
ˆ Initial jobless claims
ˆ Stock market breadth indicators

[Link] Central Bank Policies

ˆ Interest rate cycles and equity valuations
ˆ Quantitative easing impacts
ˆ Currency movements and earnings
ˆ Ination expectations
ˆ Financial conditions indices

4.2.2 Geopolitical Risk Assessment

[Link] Trade and Tari Analysis
ˆ Supply chain vulnerabilities
ˆ Trade war scenarios
ˆ Currency manipulation concerns
ˆ Sanctions and their impacts
ˆ Reshoring and near-shoring trends

[Link] Regulatory Environment

ˆ ESG regulations and reporting
ˆ Tax policy changes
ˆ Industry-specic regulations
ˆ Cross-border compliance
ˆ Political risk premiums

Prof. V. Ravichandran Page 14 of 43 Practitioner of Finance

Chapter 5
Professional Skills and Competencies

5.1 Communication and Presentation Skills

5.1.1 Written Communication
[Link] Research Report Writing
ˆ Executive summary best practices
ˆ Investment thesis articulation
ˆ Risk factor disclosure
ˆ Visual data presentation
ˆ Compliance and disclaimer requirements

[Link] Dierent Report Formats

ˆ Initiation reports
ˆ Quarterly earnings updates
ˆ Thematic research pieces
ˆ Morning notes and ash updates
ˆ Annual sector outlooks

5.1.2 Oral Presentation Skills

[Link] Client Presentations
ˆ Structuring investment pitches
ˆ Handling Q&A sessions
ˆ Using visual aids eectively

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The Mountain Path - World of Finance Equity Analyst Career Guide

ˆ Virtual presentation techniques

ˆ Cross-cultural communication

[Link] Internal Communications

ˆ Investment committee presentations
ˆ Morning meetings contributions
ˆ Peer review discussions
ˆ Mentoring junior analysts
ˆ Cross-functional collaboration

5.2 Critical Thinking and Problem Solving

5.2.1 Analytical Frameworks
[Link] Structured Problem Solving
ˆ Issue trees and MECE principles
ˆ Hypothesis-driven research
ˆ Root cause analysis
ˆ Scenario planning
ˆ Decision trees and real options

[Link] Information Synthesis

ˆ Connecting disparate data points
ˆ Pattern recognition
ˆ Contrarian thinking
ˆ Avoiding cognitive biases
ˆ Bayesian updating of views

5.2.2 Ethical Considerations

[Link] Professional Ethics
ˆ Insider trading regulations
ˆ Conicts of interest management
ˆ Fair dealing and market manipulation
ˆ Research independence

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ˆ Client condentiality

[Link] ESG Integration

ˆ Environmental risk assessment
ˆ Social impact measurement
ˆ Governance quality evaluation
ˆ Sustainable investing frameworks
ˆ Impact measurement and reporting

Prof. V. Ravichandran Page 17 of 43 Practitioner of Finance

Chapter 6
Professional Certications and Continu-
ous Learning

6.1 Essential Certications

6.1.1 CFA (Chartered Financial Analyst)
[Link] Program Overview
The CFA charter is considered the gold standard in investment management:
ˆ Three levels of examinations
ˆ Covers ethics, quantitative methods, economics, nancial reporting, corporate nance,
equity, xed income, derivatives, alternative investments, and portfolio management
ˆ Requires 4 years of relevant work experience
ˆ Emphasis on ethical and professional standards
ˆ Global recognition and credibility

CFA Level I CFA Level II CFA Level III

Knowledge & Comprehension Application & Analysis Synthesis & Evaluation
180 Questions 88 Questions Essay + MCQ
Pass Rate: 40-45% Pass Rate: 45-50% Pass Rate: 50-55%

6+ months 6+ months 6+ months

Figure 6.1: CFA Program Structure and Timeline

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The Mountain Path - World of Finance Equity Analyst Career Guide

Table 6.1: Core Skills Assessment Matrix for Equity Analysts

Skill Category Entry Level Junior Senior Lead
Financial Analysis Basic Intermediate Advanced Expert
Valuation Methods Basic Intermediate Advanced Expert
Excel/Modeling Intermediate Advanced Expert Expert
Programming (Python/R) Basic Basic Intermediate Advanced
Communication Basic Intermediate Advanced Expert
Industry Knowledge Basic Intermediate Expert Expert
Team Management - Basic Intermediate Advanced

[Link] Preparation Strategy

ˆ Start with Level I during nal year of MBA
ˆ Dedicate 300+ hours per level
ˆ Use CFA Institute materials as primary source
ˆ Supplement with third-party providers (Kaplan, Wiley)
ˆ Join study groups and online forums
ˆ Practice with mock exams and question banks

6.1.2 FRM (Financial Risk Manager)

[Link] Program Benets
ˆ Specialized focus on risk management
ˆ Two-part examination
ˆ Covers market risk, credit risk, operational risk
ˆ Quantitative analysis emphasis
ˆ Complementary to equity analysis skills

[Link] Career Enhancement

ˆ Dierentiates candidates in risk-conscious markets
ˆ Opens doors to risk management roles
ˆ Enhances understanding of portfolio risk
ˆ Valuable for sell-side and buy-side roles
ˆ Growing importance post-nancial crisis

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6.2 Continuous Learning Pathways

6.2.1 Technical Skills Development
[Link] Online Learning Platforms
ˆ Coursera: Financial engineering, machine learning
ˆ edX: MIT nance courses, data science
ˆ DataCamp: Python and R for nance
ˆ Udemy: Financial modeling, VBA
ˆ LinkedIn Learning: Soft skills and tools

[Link] Industry Resources

ˆ CFA Institute Research Foundation
ˆ SSRN for academic research
ˆ Seeking Alpha for practitioner insights
ˆ Industry conferences and webinars
ˆ Sell-side research reports

6.2.2 Networking and Professional Development

[Link] Professional Associations
ˆ CFA Society membership
ˆ CAIA Association for alternatives
ˆ Local investment analyst societies
ˆ Alumni networks
ˆ Industry-specic groups

[Link] Mentorship and Coaching

ˆ Identifying potential mentors
ˆ Building mentor relationships
ˆ Reverse mentoring opportunities
ˆ Peer learning groups
ˆ Executive coaching for senior roles

Prof. V. Ravichandran Page 20 of 43 Practitioner of Finance

Chapter 7
Interview Preparation and Career Strat-
egy

7.1 Technical Interview Preparation

7.1.1 Common Technical Questions
Technical Market Views
Valuation, Modeling Current Events

Behavioral Firm Research

STAR Method Culture Fit
Interview
Process
Case Study Questions
Stock Pitch To Ask

Figure 7.1: Comprehensive Interview Preparation Framework

[Link] Valuation Questions

ˆ Walk through a DCF model
ˆ When to use dierent valuation methods
ˆ How to adjust for company-specic factors
ˆ Dealing with negative cash ows
ˆ Terminal value assumptions

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The Mountain Path - World of Finance Equity Analyst Career Guide

[Link] Financial Statement Analysis

ˆ Linking three nancial statements
ˆ Impact of transactions on statements
ˆ Identifying earnings management
ˆ Cash ow vs. net income discrepancies
ˆ Working capital changes analysis

7.1.2 Case Study Preparation

[Link] Stock Pitch Framework
1. Investment thesis (2-3 key points)
2. Company overview and business model
3. Industry analysis and competitive position
4. Financial analysis and key metrics
5. Valuation and target price
6. Key risks and mitigants
7. Expected catalysts and timeline

[Link] Market Views and Current Events

ˆ Current market conditions
ˆ Sector rotation themes
ˆ Macroeconomic outlook
ˆ Geopolitical risks
ˆ Technology disruption impacts

7.2 Behavioral Interview Excellence

7.2.1 STAR Method Application
[Link] Situation-Task-Action-Result Framework
ˆ Analytical problem-solving examples
ˆ Team collaboration experiences
ˆ Leadership and initiative
ˆ Dealing with ambiguity

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ˆ Overcoming failures

[Link] Common Behavioral Questions

ˆ Why equity research?
ˆ Career goals and aspirations
ˆ Strengths and development areas
ˆ Ethical dilemmas faced
ˆ Time management examples

7.2.2 Firm-Specic Preparation

[Link] Research About Target Firms
ˆ Investment philosophy and process
ˆ Recent fund performance
ˆ Key personnel and culture
ˆ Coverage universe and sectors
ˆ Recent research publications

[Link] Questions to Ask Interviewers

ˆ Research process and collaboration
ˆ Career progression opportunities
ˆ Training and development programs
ˆ Technology and tools used
ˆ Performance evaluation criteria

Prof. V. Ravichandran Page 23 of 43 Practitioner of Finance

Chapter 8
Building Your Professional Portfolio

8.1 Creating Sample Work

8.1.1 Equity Research Reports
[Link] Report Components
ˆ Executive summary with recommendation
ˆ Investment thesis (3-4 bullet points)
ˆ Company description and business model
ˆ Industry analysis and positioning
ˆ Financial analysis (historical and projected)
ˆ Valuation (multiple methodologies)
ˆ Risk factors and sensitivities
ˆ Technical appendices

Executive Summary & Recommendation

Investment Thesis Company Overview

Industry Analysis & Competitive Positioning

Financial Analysis Valuation
Historical & Projected DCF, Multiples, SOTP

Risk Analysis Appendices

Investment Decision
Figure 8.1: Structure of Professional Equity Research Report

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The Mountain Path - World of Finance Equity Analyst Career Guide

Table 8.1: Key Financial Ratios for Equity Analysis

Category Ratio Formula Interpretation
ROE Net Income / Equity Shareholder returns
Protability ROA Net Income / Assets Asset eciency
ROIC NOPAT / Invested Capital Capital eciency
Current Ratio Current Assets / Current Short-term solvency
Liquidity Liabilities
Quick Ratio (CA - Inventory) / CL Immediate liquidity
Cash Ratio Cash / Current Liabilities Cash coverage
Debt/Equity Total Debt / Equity Financial leverage
Leverage Interest Coverage EBIT / Interest Expense Debt service ability
Debt/EBITDA Net Debt / EBITDA Leverage multiple
Asset Turnover Sales / Total Assets Asset utilization
Eciency Inventory Turnover COGS / Inventory Inventory management
Receivables Days (AR / Sales) Ö 365 Collection eciency
P/E Price / EPS Earnings multiple
Valuation EV/EBITDA Enterprise Value / Firm valuation
EBITDA
P/B Price / Book Value Asset valuation

[Link] Best Practices

ˆ Clear and concise writing
ˆ Professional formatting and graphics
ˆ Data visualization excellence
ˆ Proper sourcing and citations
ˆ Compliance with regulations

8.1.2 Financial Models

[Link] Model Portfolio
ˆ Three-statement integrated model
ˆ DCF valuation model
ˆ LBO model (for PE-focused roles)
ˆ Merger model
ˆ Industry-specic models

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Table 8.2: Types of Financial Models for Equity Analysis

Model Type Primary Purpose Key Compo- Complexity
nents Level
3-Statement Historical & projec- IS, BS, CF inte- Intermediate
Model tion gration
DCF Model Intrinsic valuation FCF, WACC, Advanced
Terminal value
Comparable Relative valuation Trading & trans- Basic-Intermediate
Analysis action comps
M&A Model Deal analysis Accretion/dilution,Advanced
synergies
LBO Model Buyout analysis Debt schedule, Advanced
IRR, exit
Option Pricing Derivatives/growth Black-Scholes, Expert
options binomial

Industry Analysis
Market Dynamics Competitive Position

Analytical
Financial Analysis Company Analysis
Framework

Scenario Analysis Risk Assessment

Valuation Analysis

Investment Decision

Figure 8.2: Integrated Analytical Framework for Equity Research

[Link] Model Documentation

ˆ Assumption documentation
ˆ Scenario analysis capabilities
ˆ Sensitivity tables
ˆ Executive dashboard
ˆ User guide and instructions

8.2 Online Presence and Branding

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8.2.1 LinkedIn Optimization

[Link] Prole Components
ˆ Professional headline with keywords
ˆ Comprehensive summary
ˆ Detailed experience descriptions
ˆ Skills and endorsements
ˆ Recommendations from professors/colleagues
ˆ Published articles and posts

[Link] Network Building

ˆ Connecting with industry professionals
ˆ Joining relevant groups
ˆ Engaging with content
ˆ Sharing market insights
ˆ Building thought leadership

8.2.2 Digital Portfolio

[Link] Personal Website/Blog
ˆ Investment philosophy statement
ˆ Sample research reports
ˆ Market commentary
ˆ Educational content
ˆ Contact information

[Link] GitHub Repository

ˆ Python scripts for analysis
ˆ Data visualization projects
ˆ Financial modeling tools
ˆ API integration examples
ˆ Documentation and tutorials

Prof. V. Ravichandran Page 27 of 43 Practitioner of Finance

Chapter 9
Industry Trends and Future Outlook

9.1 Technology Disruption in Equity Research

9.1.1 Articial Intelligence and Machine Learning
[Link] Current Applications
ˆ Natural language processing for earnings calls
ˆ Sentiment analysis of news and social media
ˆ Pattern recognition in nancial data
ˆ Automated report generation
ˆ Anomaly detection in accounting

[Link] Future Implications

ˆ Augmented analyst capabilities
ˆ Real-time data processing
ˆ Predictive modeling enhancement
ˆ Personalized research delivery
ˆ Human-AI collaboration models

9.1.2 Alternative Data Integration

[Link] Data Sources
ˆ Satellite imagery for economic activity
ˆ Web scraping for pricing and inventory
ˆ Credit card transaction data

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The Mountain Path - World of Finance Equity Analyst Career Guide

ˆ Mobile location data

ˆ Social media sentiment
ˆ IoT sensor data

[Link] Implementation Challenges

ˆ Data quality and reliability
ˆ Privacy and regulatory concerns
ˆ Integration with traditional analysis
ˆ Cost-benet analysis
ˆ Skill requirements for analysts

9.2 Evolving Regulatory Landscape

9.2.1 MiFID II and Global Implications
[Link] Research Unbundling
ˆ Separation of research and execution costs
ˆ Pressure on research budgets
ˆ Quality vs. quantity focus
ˆ Independent research providers
ˆ New business models emerging

[Link] Career Implications

ˆ Fewer but higher-quality positions
ˆ Emphasis on dierentiated insights
ˆ Technology skills premium
ˆ Cross-functional capabilities
ˆ Global mobility importance

9.2.2 ESG and Sustainable Investing

[Link] Integration Requirements
ˆ ESG factor analysis
ˆ Climate risk assessment
ˆ Social impact measurement

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ˆ Governance scoring
ˆ SDG alignment analysis

[Link] Reporting Standards

ˆ TCFD recommendations
ˆ SASB standards
ˆ GRI framework
ˆ EU taxonomy
ˆ Double materiality concept

Prof. V. Ravichandran Page 30 of 43 Practitioner of Finance

Chapter 10
Conclusion and Action Plan

10.1 Summary of Key Success Factors

The journey to becoming a successful equity analyst requires dedication, continuous learn-
ing, and strategic career planning. Key success factors include:

10.1.1 Technical Excellence

ˆ Master nancial analysis and valuation
ˆ Develop strong modeling skills
ˆ Embrace technology and data analytics
ˆ Maintain industry knowledge currency
ˆ Pursue relevant certications

10.1.2 Professional Development

ˆ Build strong communication skills
ˆ Develop sector expertise
ˆ Cultivate professional network
ˆ Maintain ethical standards
ˆ Embrace continuous learning

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10.2 90-Day Action Plan for MBA Students

Table 10.1: Structured 90-Day Action Plan for Equity Analyst Preparation
Phase Key Activities Deliverables Time Invest-
ment
Days 1-30: ˆ Self-assessment ˆ Skills gap analysis 4-5 hrs/day
Foundation ˆ CFA Level I start ˆ Study schedule
ˆ Excel skills enhancement ˆ Professional prole
ˆ LinkedIn optimization ˆ Network of 20+ contacts
Days 31-60: ˆ Financial modeling course ˆ 3 nancial models 5-6 hrs/day
Skill Building ˆ Python/VBA basics ˆ Automation scripts
ˆ First research report ˆ Published research
ˆ Industry events ˆ 5 informational interviews
Days 61-90: ˆ Job applications ˆ 20+ applications 6-7 hrs/day
Application ˆ Mock interviews ˆ 3 stock pitches
ˆ Stock pitch practice ˆ Interview prep doc
ˆ Portfolio renement ˆ Online portfolio

10.2.1 Days 1-30: Foundation Building

1. Complete self-assessment of current skills
2. Identify target rms and roles
3. Begin CFA Level I preparation
4. Start building nancial models
5. Set up LinkedIn and optimize prole
6. Join relevant professional groups
7. Read 5 equity research reports weekly

10.2.2 Days 31-60: Skill Development

1. Complete online nancial modeling course
2. Learn Python or advanced Excel
3. Write rst equity research report
4. Attend industry webinars/events
5. Connect with 5 professionals weekly
6. Start market commentary blog
7. Prepare stock pitch presentations

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10.2.3 Days 61-90: Application and Networking

1. Apply to target positions
2. Conduct informational interviews
3. Rene research reports portfolio
4. Practice case studies and interviews
5. Participate in stock pitch competitions
6. Seek mentorship opportunities
7. Maintain consistent learning routine

10.3 Long-term Career Management

10.3.1 Year 1-2: Establish Foundation
ˆ Excel in entry-level role
ˆ Build internal network
ˆ Develop sector expertise
ˆ Complete CFA Level II
ˆ Contribute to research products

10.3.2 Year 3-5: Build Expertise

ˆ Lead coverage of companies
ˆ Develop investment track record
ˆ Build external network
ˆ Complete CFA charter
ˆ Consider additional certications

10.3.3 Year 5+: Leadership Development

ˆ Mentor junior analysts
ˆ Develop thought leadership
ˆ Explore portfolio management
ˆ Consider MBA or advanced degrees
ˆ Build personal brand

Prof. V. Ravichandran Page 33 of 43 Practitioner of Finance

Bibliography

[1] Graham, B., & Dodd, D. (2009). Security Analysis: Principles and Techniques (6th
ed.). McGraw-Hill.
[2] Damodaran, A. (2012). Investment Valuation: Tools and Techniques for Determining
the Value of Any Asset (3rd ed.). John Wiley & Sons.

[3] McKinney, W. (2018). Python for Data Analysis: Data Wrangling with Pandas,

NumPy, and IPython (2nd ed.). O'Reilly Media.

[4] Fabozzi, F. J., & Markowitz, H. M. (2015). The Theory and Practice of Investment

Management (2nd ed.). John Wiley & Sons.

[5] CFA Institute. (2024). CFA Program Curriculum 2024 . CFA Institute.
[6] Reilly, F. K., Brown, K. C., & Leeds, S. J. (2019). Investment Analysis and Portfolio
Management (11th ed.). Cengage Learning.

[7] Bodie, Z., Kane, A., & Marcus, A. J. (2021). Investments (12th ed.). McGraw-Hill
Education.
[8] Penman, S. H. (2013). Financial Statement Analysis and Security Valuation (5th
ed.). McGraw-Hill.
[9] Richardson, S., Tuna, I., & Wysocki, P. (2010). Accounting anomalies and funda-
mental analysis: A review of recent research advances. Journal of Accounting and
Economics, 50(2-3), 410-454.

[10] Abarbanell, J. S., & Bushee, B. J. (1997). Fundamental analysis, future earnings,
and stock prices. Journal of Accounting Research, 35(1), 1-24.
[11] Hull, J. C. (2022). Options, Futures, and Other Derivatives (11th ed.). Pearson.
[12] Grinold, R. C., & Kahn, R. N. (2019). Active Portfolio Management: A Quantitative

Approach for Producing Superior Returns (2nd ed.). McGraw-Hill.

[13] Eccles, R. G., & Stroehle, J. C. (2020). Exploring social origins in the construction
of ESG measures. Working Paper, Said Business School, University of Oxford.
[14] Pedersen, L. H., Fitzgibbons, S., & Pomorski, L. (2021). Responsible investing: The
ESG-ecient frontier. Journal of Financial Economics, 142(2), 572-597.

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The Mountain Path - World of Finance Equity Analyst Career Guide

[15] Fama, E. F., & French, K. R. (2015). A ve-factor asset pricing model. Journal of

Financial Economics, 116(1), 1-22.

[16] Brown, L. D., Call, A. C., Clement, M. B., & Sharp, N. Y. (2019). Managing the
narrative: Investor relations ocers and corporate disclosure. Journal of Accounting
and Economics, 67(1), 58-79.

[17] Bradshaw, M. T., Lee, L. F., & Peterson, K. (2017). The interactive role of diculty
and incentives in explaining the annual earnings forecast walkdown. The Accounting
Review, 92(4), 21-40.

[18] Chen, Q., & Wang, R. (2023). The role of alternative data in equity research: Evi-
dence from satellite imagery. Review of Financial Studies, 36(3), 1152-1189.
[19] Lopez de Prado, M. (2023). Machine Learning for Asset Managers . Cambridge Uni-
versity Press.
[20] Ang, A. (2021). Asset Management: A Systematic Approach to Factor Investing (2nd
ed.). Oxford University Press.

Prof. V. Ravichandran Page 35 of 43 Practitioner of Finance

Appendix A
Essential Resources and Tools

A.1 Financial Databases and Platforms

ˆ Bloomberg Terminal: Comprehensive nancial data and analytics
ˆ Renitiv Eikon: Thomson Reuters nancial platform
ˆ S&P Capital IQ: Fundamental data and research
ˆ FactSet: Integrated nancial information platform
ˆ Morningstar Direct: Investment research platform
ˆ WRDS (Wharton Research Data Services): Academic research database

A.2 Free and Low-Cost Resources

ˆ Yahoo Finance: Basic nancial data and news
ˆ Google Finance: Market data and basic analytics
ˆ EDGAR (SEC): Company lings and reports
ˆ FRED (Federal Reserve): Economic data
ˆ World Bank Open Data: Global development data
ˆ Koyn: Modern investment research platform

A.3 Professional Development Resources

ˆ CFA Institute: Professional development and research
ˆ GARP (Global Association of Risk Professionals): Risk management resources
ˆ Wall Street Oasis: Career guidance and forums

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The Mountain Path - World of Finance Equity Analyst Career Guide

ˆ Mergers & Inquisitions: Investment banking and PE resources

ˆ Breaking Into Wall Street: Financial modeling training

Prof. V. Ravichandran Page 37 of 43 Practitioner of Finance

Appendix B
Sample Interview Questions and Answers

B.1 Technical Questions

B.1.1 Question: Walk me through the three nancial statements
Model Answer: The three nancial statements are interconnected and provide dierent
perspectives on a company's nancial health:
Income Statement: Shows protability over a period, starting with revenues and de-
ducting expenses to arrive at net income. Key components include gross prot, operating
income, EBIT, and net income.
Balance Sheet: Snapshot of nancial position at a point in time, following the equation:
Assets = Liabilities + Equity. Shows what the company owns, owes, and shareholders'
residual interest.
Cash Flow Statement: Tracks actual cash movements through operating, investing,
and nancing activities. Bridges the gap between accrual accounting and cash position.
Key Linkages:
ˆ Net income from IS ows to retained earnings on BS
ˆ Net income is starting point for operating cash ow
ˆ Changes in BS working capital accounts aect cash ow
ˆ CapEx in cash ow statement aects PP&E on balance sheet
ˆ Depreciation on IS is added back in cash ow (non-cash expense)

B.1.2 Question: How would you value a company?

Model Answer: I would use multiple valuation methodologies to triangulate fair value:
1. DCF Analysis (Intrinsic Value):
ˆ Project free cash ows based on revenue growth, margins, and capital needs

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The Mountain Path - World of Finance Equity Analyst Career Guide

ˆ Discount using WACC reecting business risk

ˆ Add terminal value using perpetuity growth or exit multiple
ˆ Most theoretically sound but sensitive to assumptions
2. Comparable Company Analysis (Relative Value):
ˆ Identify similar companies by industry, size, growth, and risk prole
ˆ Calculate relevant multiples (EV/EBITDA, P/E, EV/Sales)
ˆ Apply median/mean multiples to target company metrics
ˆ Quick but requires truly comparable peers
3. Precedent Transaction Analysis:
ˆ Analyze recent M&A transactions in the industry
ˆ Calculate implied multiples paid
ˆ Includes control premium
ˆ Good for M&A contexts
4. Asset-Based Valuation:
ˆ For asset-heavy companies or liquidation scenarios
ˆ Mark assets to market value
ˆ Useful oor valuation
The appropriate method depends on company characteristics, data availability, and val-
uation purpose. I would weight methods based on reliability and relevance to derive a
valuation range.

B.2 Behavioral Questions

B.2.1 Question: Why equity research?
Model Answer: Equity research perfectly combines my analytical skills, passion for
markets, and desire to make impactful investment decisions. Three key factors drive my
interest:
Intellectual Challenge: I enjoy the detective work of analyzing companies, under-
standing business models, and identifying disconnects between market perception and
fundamental reality. Each company presents a unique puzzle requiring dierent analyti-
cal approaches.
Market Impact: Research directly inuences capital allocation decisions aecting mil-
lions of investors. The responsibility of providing accurate, actionable insights that help
clients achieve their nancial goals is highly motivating.

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The Mountain Path - World of Finance Equity Analyst Career Guide

Continuous Learning: Markets evolve constantly, requiring continuous adaptation and

learning. Whether it's understanding new technologies, regulatory changes, or emerging
business models, the dynamic nature keeps me engaged and growing professionally.
My background in [relevant experience] has prepared me well for this role, and I'm excited
to contribute meaningful insights while developing deep sector expertise.

B.2.2 Question: Tell me about a time you had to analyze complex

information under time pressure
Model Answer using STAR:
Situation: During my internship at [Company], our team received a breaking news alert
about a major regulatory change aecting our coverage universe, just two hours before
market open.
Task: I needed to analyze the 50-page regulatory document, assess impact on ve compa-
nies we covered, and prepare a summary for the portfolio manager before trading began.
Action: I immediately:
ˆ Divided the document into sections and focused on key changes
ˆ Created a quick framework to assess impact (revenue, costs, competitive dynamics)
ˆ Used Excel to model preliminary earnings impact scenarios
ˆ Cross-referenced with company disclosures on regulatory exposure
ˆ Prepared a one-page summary with company-specic impacts and trading recom-
mendations
Result: Delivered the analysis 15 minutes before market open, enabling the PM to adjust
positions proactively. Two companies we identied as negatively impacted declined 8-10%
that day, validating our analysis. The PM commended my ability to synthesize complex
information quickly and accurately.

Prof. V. Ravichandran Page 40 of 43 Practitioner of Finance

Appendix C
Financial Modeling Templates and Best
Practices

C.1 DCF Model Structure

C.1.1 Input Assumptions Tab
ˆ Revenue growth rates by segment
ˆ Operating margin progression
ˆ Working capital as % of sales
ˆ Capital expenditure projections
ˆ Tax rate assumptions
ˆ WACC components (risk-free rate, beta, market premium)
ˆ Terminal growth rate

C.1.2 Financial Projections

ˆ 5-10 year detailed projections
ˆ Revenue build-up by segment/product
ˆ Operating expense detail
ˆ EBITDA and EBIT calculations
ˆ Tax calculations
ˆ Capital expenditure and depreciation
ˆ Working capital changes
ˆ Free cash ow derivation

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The Mountain Path - World of Finance Equity Analyst Career Guide

C.1.3 Valuation Output

ˆ Present value of cash ows
ˆ Terminal value calculation (both perpetuity and exit multiple)
ˆ Enterprise value to equity value bridge
ˆ Implied share price
ˆ Sensitivity analysis tables
ˆ Scenario analysis
ˆ Football eld valuation chart

C.2 Model Best Practices Checklist

C.2.1 Design Principles
ˆ Separate inputs, calculations, and outputs
ˆ Use consistent formulas across periods
ˆ Minimize hard-coded numbers in formulas
ˆ Build in error checks and balancing
ˆ Use clear naming conventions
ˆ Document assumptions and sources

C.2.2 Formula Best Practices

ˆ Keep formulas simple and readable
ˆ Avoid nested IFs (use CHOOSE or LOOKUP)
ˆ Use named ranges for key inputs
ˆ Build in circuit breaker checks
ˆ Use IFERROR for error handling
ˆ Maintain formula consistency across rows

C.2.3 Formatting Standards

ˆ Blue font for inputs (hardcoded)
ˆ Black font for formulas
ˆ Green font for links to other sheets
ˆ Use borders to separate sections

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The Mountain Path - World of Finance Equity Analyst Career Guide

ˆ Number formatting appropriate to scale

ˆ Clear headers and labels

Prof. V. Ravichandran Page 43 of 43 Practitioner of Finance