Equity Research means study of company’s financials, financial analysis, estimation of the financials forecasts using management views, Economic Analysis, Industry Analysis (a Top down approach) and to evaluate the fundamental value of company using DCF and Trading Comparable method etc. to conclude the overvaluation/undervaluation of company’s per share price with respect to its market price (traded on exchange).
Equity research is generally to provide a thorough analysis of the company with an intention to give buy, sell or hold recommendations for an investment in respective company’s shares. On other hand Industry Research is the overall analysis of the companies belonging to same group as a part of Industry/sector/subsector (a bottom up approach). The aggregate trend of the performance of all the companies in the comparable peer’s group, generally known as industry trend.
Overall financial position and soundness of the company
- Ratio Analysis- To gauge liquidity, profitability and solvency condition of the company.
- Intrinsic Value analysis using DCF model, based on Free Cash Flows to Firm and Free Cash Flow to Equity etc.
- Company valuation using public comparable and transaction multiples.
- SWOT and Michael Porter’s five forces analysis for assessment of long-term profitability of the industry.
- Preparing pitch books, information memorandum and article writing across multiple industries.
- Updating financial and operational models on quarterly basis using 10K/10Q financial reports, SEC filing and analyst research reports.
- Identifying, analyzing and modeling key financial/operational drivers for competitive benchmarking and preparing peer group monitoring research reports.
- Earning quality and operating cash flow assessment for better understanding of overall company operations.
How we support you?
- Carrying out comprehensive quantitative and qualitative research across diversified industries.
- Conducting fundamental and market research by analyzing company financials, ratio analysis and market opportunity assessment studies.
- Risk management and portfolio management services.
- Conducting macro and micro economic analysis for an extensive understanding of the industry.
We at Veristrat harmonize the process by bringing together the knowledge and skills required for all stages of the research process. Our experts provide customized and comprehensive equity and industry research services across multiple industries and regions. We assist clients in taking well informed strategic decisions that helps in maximizing shareholder’s value.