Think like an Analyst

Course details

Learn to look through the eyes of one of your key target audiences. Find out how analysts think, how they build their models and what pushes their buttons.

Who should attend

• Anyone who deals with the sell-side as part of the company's financial communications
• Financial markets professionals who would like to take a more analytical view
• Investment managers

We will assume that you have taken Finance Essentials or have the equivalent knowledge. Participants tend to come from a mixture of financial and non-financial backgrounds and this course provides something for everyone.

Outcomes

This course will put you in the shoes of an analyst so that you can see things from their perspective. Exercises include a team forecasting competition, interpreting how guidance affects an analyst's model and identifying the key assumptions in consensus.

What will I learn?

The Big Picture

• Setting the scene - understanding your investor base
• The role of analysts in today's capital markets
• Sell-side and buy-side - similarities and differences
• Primary tasks of an equity research analyst
• Analyst perspectives, pressures and typical characteristics How analysts make money » Sources of information and how it is organized » How you can help

Identifying Value Drivers

• » Understanding industry structures and peer group identification
• » Analysing capacity and demand - the importance of historical analysis
• » Identifying the food chain - suppliers and customers
• » Critical factors that impact earnings, cash flows and/or returns
• » Key questions you need to be able to answer on strategy

Forecasting and Model Building

• Typical models
• How analysts forecast and the role of guidance
• Special factors for cyclical or growth companies
• Red flags
• Sensitivity analysis
• Understanding the key assumptions in consensus
• Key questions you need to be able to answer on the financials
• Understanding price targets and recommendations

Lessons for Communications with Analysts

• Key influencing skills - understanding what's in it for them and what are their concerns
• Implications of disclosure rules
• Tactics to encourage a following
• Top tips for IR and for senior management

How will you learn

• Through engaging, interactive case studies and exercises that guide you from what you know to more advanced finance and accounting
• By exercises designed to replicate situations you will encounter, with many drawn from real life examples
• Through vigorous discussion and debate that encourages attendees to engage financial language and helps solidify the learning
• Via practical applications of content - ensuring that you return to your desk to carry out your duties even more effectively