Editing Stockhub:How to Write an Equity Research Report
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** Overview of the company's genesis and significant milestones. | ** Overview of the company's genesis and significant milestones. | ||
** '''Timeline:''' Highlighting pivotal dates and achievements. | ** '''Timeline:''' Highlighting pivotal dates and achievements. | ||
* | * What's the mission of the company? | ||
** Overview of the company's genesis and significant milestones. | ** Overview of the company's genesis and significant milestones. | ||
** '''Timeline:''' Highlighting pivotal dates and achievements. | ** '''Timeline:''' Highlighting pivotal dates and achievements. | ||
* | * Offerings | ||
** '''Divisions Overview:''' A broad overview of the different divisions or departments within the company. | ** '''Divisions Overview:''' A broad overview of the different divisions or departments within the company. | ||
** '''Products & Services:''' An outline of the main products or services provided by each division. | ** '''Products & Services:''' An outline of the main products or services provided by each division. | ||
'''Research and Development''': (optional) | |||
'''Different parts:''' | '''Different parts:''' | ||
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*** '''Methodology:''' If deriving TAM using a logical or scientific method, describe the approach taken. This might involve market extrapolation, top-down/bottom-up analysis, or other methods. | *** '''Methodology:''' If deriving TAM using a logical or scientific method, describe the approach taken. This might involve market extrapolation, top-down/bottom-up analysis, or other methods. | ||
*** '''Assumptions:''' Clearly outline any assumptions made during the estimation process. | *** '''Assumptions:''' Clearly outline any assumptions made during the estimation process. | ||
* | * Serviceable Available Market (SAM): | ||
** '''Definition:''' Describe what portion of the TAM is available for the company to serve, considering its current capabilities and constraints. | ** '''Definition:''' Describe what portion of the TAM is available for the company to serve, considering its current capabilities and constraints. | ||
** '''Quantification:''' Estimate the SAM, narrowing down from the TAM. | ** '''Quantification:''' Estimate the SAM, narrowing down from the TAM. | ||
*** '''Methodology:''' Describe the approach taken to arrive at the SAM. This could involve segmenting the TAM based on geography, product type, distribution capacity, etc. | *** '''Methodology:''' Describe the approach taken to arrive at the SAM. This could involve segmenting the TAM based on geography, product type, distribution capacity, etc. | ||
*** '''Assumptions:''' Clearly outline any assumptions made during this segmentation process. | *** '''Assumptions:''' Clearly outline any assumptions made during this segmentation process. | ||
* | * Serviceable Obtainable Market (SOM): | ||
** '''Definition:''' Describe what portion of the TAM is actually available for the company to serve, considering its current capabilities and constraints. | ** '''Definition:''' Describe what portion of the TAM is actually available for the company to serve, considering its current capabilities and constraints. | ||
** '''Quantification:''' Estimate the SAM, narrowing down from the TAM. | ** '''Quantification:''' Estimate the SAM, narrowing down from the TAM. | ||
*** '''Methodology:''' Describe the approach taken to arrive at the SAM. This could involve segmenting the TAM based on geography, product type, distribution capacity, etc. | *** '''Methodology:''' Describe the approach taken to arrive at the SAM. This could involve segmenting the TAM based on geography, product type, distribution capacity, etc. | ||
*** '''Assumptions:''' Clearly outline any assumptions made during this segmentation process. | *** '''Assumptions:''' Clearly outline any assumptions made during this segmentation process. | ||
* | * Market Trends & Dynamics | ||
** '''Overview:''' Discuss current market trends, potential disruptors, technological advancements, regulatory changes, or other factors that might influence the TAM, SAM, and SOM. | ** '''Overview:''' Discuss current market trends, potential disruptors, technological advancements, regulatory changes, or other factors that might influence the TAM, SAM, and SOM. | ||
** '''Implications''': Analyze the potential impact of these trends on the company's market positioning and future growth prospects. | ** '''Implications''': Analyze the potential impact of these trends on the company's market positioning and future growth prospects. | ||
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* '''Competitors Analysis''': | * '''Competitors Analysis''': | ||
* '''Identification:''' List the primary competitors in the market. | |||
* '''Evaluation Criteria:''' Define the parameters on which competitors will be assessed. This could include market share, product quality, innovation capability, distribution network, customer loyalty, etc. | |||
* '''Comparative Analysis:''' Based on the established criteria, provide a detailed comparison of the company with its competitors. Highlight both strengths and areas of improvement. | |||
* '''Tables outlay:''' Presenting the results of this analysis in a table can be beneficial. | |||
== · Competitive Advantage: == | |||
* '''Framework Application:''' Utilize models like Porter's Five Forces to assess the competitive environment and the company's positioning within it. | |||
* | |||
* '''Sustainable Competitive Advantages:''' Identify and describe the long-term advantages that the company possesses over its competitors. | |||
==* Market Positioning == | |||
*'''Overview:''' Describe how the company positions itself in the market in comparison to competitors. | |||
* '''Differentiators:''' Highlight what sets the company apart from others, be it product features, service quality, customer experience, or any other unique selling proposition. | |||
== Team == | == Team == | ||
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* '''Board of Directors''': | * '''Board of Directors''': | ||
* Provide background information and qualifications. | |||
* | * Discuss any potential conflict of interest. | ||
==* Chairman of the Board of Directors: == | |||
* Explain the role in strategic decision-making. | |||
* Assess alignment with the company’s objectives. | |||
== ESG and Sustainability Outlook == | == ESG and Sustainability Outlook == | ||
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* '''Financial, Business-Specific, and Legal Risks''': | * '''Financial, Business-Specific, and Legal Risks''': | ||
* Explain how each risk specifically affects the company. | |||
* Try to finally the overall risk of the company. (Generally high return = high risk) | |||
== Financials == | == Financials == | ||
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* '''Select the Universe of Comparable Companies''' | * '''Select the Universe of Comparable Companies''' | ||
* Operational similarities (e.g., similar business models, products, or services). | |||
* Comparable size (revenue, assets, market capitalization). | |||
* Geographic presence (e.g., firms operating in similar regions or markets). | |||
* Make a tier 1 list of 8-10 companies that you will use for the analysis. | * Make a tier 1 list of 8-10 companies that you will use for the analysis. | ||
* Make a tier 2 list of 8-10 companies as a backup. | * Make a tier 2 list of 8-10 companies as a backup. | ||
* '''Calculate Valuation Multiples (some multiples might be more adapted to a certain industry, make your own research)''' | * '''Calculate Valuation Multiples (some multiples might be more adapted to a certain industry, make your own research)''' | ||
* '''Some common Multiples:''' | * '''Some common Multiples:''' | ||
* Price-to-Earnings (P/E) | |||
* Enterprise Value-to-EBITDA (EV/EBITDA) | |||
* Enterprise Value-to-EBIT (EV/EBIT) | |||
* Price-to-Book (P/B) | |||
* Price-to-Sales (P/S) | |||
* '''Median & Mean:''' Calculate the median and mean of each multiple across the comps. These can act as benchmark figures. | * '''Median & Mean:''' Calculate the median and mean of each multiple across the comps. These can act as benchmark figures. | ||
* '''Value the Target Company:''' Apply the median (or mean, depending on your preference and the distribution of data) multiples to the metrics of the target company. This will provide a range of valuations. | * '''Value the Target Company:''' Apply the median (or mean, depending on your preference and the distribution of data) multiples to the metrics of the target company. This will provide a range of valuations. | ||
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* [[Airbus SE|https://stockhub.co/research/Airbus_SE]] | * [[Airbus SE|https://stockhub.co/research/Airbus_SE]] | ||
Good overall structure and detailed DCF as well as a Monte Carlo Simulation | |||
'''Tesla:''' | '''Tesla:''' |