QUADRANT SKEW CAPITAL Syllabus

Transcription

1 QUADRANT SKEW CAPITAL Syllabus

2 OVERVIEW Quadrant Skew Capital s Equity Research Program focuses on material, content and skills that are directly applicable to real-world application. Our program provides in-depth training on the following topics via our online training modules. Module 1: Overview of Equity Research Program Module 2: Accounting Basics Module 3: Selecting a Target Module 4: Comparable Companies Model Module 5: Discounted Cash Flow Model Module 6: Equity Research Report and Allocation Reward Members will have access to additional modules created while registered for the program

3 TRAINING MODULES Module 1: Overview of Equity Research Program Provides an overview of the goals, structure and content of the equity research program The equity research program covers the following topics: How to select a target company How to complete QSC s valuation models which include our DCF and Comps model How to analyze a company s business model, it s industry and economic conditions How to determine and generate a BUY, HOLD or SELL recommendation How to pitch an equity research report and recommendation Members receive one on one support, guidance and assistance when needed via correspondence, review of submitted work and written feedback Members receive access to all future content and training material created while registered for the program

4 Module 2: Accounting Basics Provides an in-depth overview of the three financial statements: income statement, balance sheet and cash flow statement Explains how to read financial statements by reviewing and defining line items found on each respective financial statement Explains how to interpret financial statements and reviews how the three financial statements are linked together Reviews important accounting concepts directly applicable to our discounted cash flow and comparable companies models. Accounting terms and concepts covered include: Income Margins: Gross Profit Margins, EBITDA, EBIT and Net Income Margins How to calculate LTM or TTM values How to calculate Return on Investment metrics: ROIC, ROE, ROA and dividend yield How to calculate Leverage Ratios; Debt to Cap, Debt to EBITDA and Net Debt to EBITDA How to calculate Enterprise Value and EV Ratios; EV to Sales, EV to EBIT, EV to EBITDA How to identify and account for non-recurring items How to calculate Unlevered Free Cash Flows How to analyze and project Net Working Capital

5 Module 3: Selecting a Target Reviews the step-by-step process for selecting and identifying a suitable target company Explains and compares Top-Down target selection versus Bottom-Up target selection Reviews how to analyze the basics of target company s business model to filter selections Provides a list of additional resources for researching a potential target company Explains QSC s option to recommend a target company to members if a suitable target company is not found

6 Module 4: Comparable Companies Model Provides an extensive explanation of comparable companies models, how they work and how they are used to value potential target companies Details how to interpret financial metrics and valuation metrics generated by a comparable companies model in order to evaluate a target company in relation to its peer group Explains how to read and interpret financial statements in order to accurately input data in a comparable companies model Walks through a real-world case study of using a comparable companies model to analyze and value Apple Inc.

7 Module 5: Discounted Cash Flow Model Provides an extensive explanation of discounted cash flow models, how they work and how they are used to value potential target companies Explains how to read and interpret financial statements in order to accurately input data in a discounted cash flow model Explains how to generate and determine assumptions which drive future cash flow projections as well as how to interpret and use scenario analysis with sensitivity tables Walks through a real-world case study of using a discounted cash flow model to analyze and value Apple Inc.

8 Module 6: Equity Research Report & Allocation Call Explains how to input and format data from financial models as well as other sources into an equity research report Provides a framework and explanation for language used in the written component of an equity research report Provides an overview for the submission and review process where members receive detailed feedback on their financial models and equity research reports Explains the selection process for investible equity research recommendations and the structure of an allocation call where members pitch their recommendations during a Q&A session