Equity Research What to Expect?

We will now proceed to develop a methodology for conducting a ‘limited resource’ equity research. The reason why I call it ‘limited resource’ is because you and I as a retail investor have access to just few resources to conduct equity research. These resources are – internet, company annual report, and MS Excel. Whilst an Institution has access to human resource (analyst), access to company management, financial data base (such as Bloomberg, Reuters, Factset etc), industry reports etc. So my objective here is to demonstrate how one can understand a company and its business better with the limited resources at hand. Of course we will do this exercise keeping the end objective in perspective i.e to make a decision on whether to buy or not to buy a stock. we will structure the equity research process in 3 stages-

1. Understanding the Business

2. Application of the checklist

3. Intrinsic Value estimation (Valuation) to understand the fair price of the stock

Online  Share Broking