Equity Research & Valuation Platform (2024)

FAQs

What is equity research and valuation? ›

Equity research is the lifeline of investment banking. It is the base that forms a multi-billion dollar market for investment banks. If you're looking to start your career in a high-paying role, equity research can be the destination for you.

Why is Having Sell-Side Analysts Beneficial for Firms? The investment research done by a sell-side analyst will assist the client with making an informed decision on their investment, which will stimulate the process of buying or selling financial instruments.

Some websites allow you to search for research reports on companies or by firms. Some of the reports are free, but you must pay for most of them.

Associates in major financial centers tend to earn between $125K and $200K USD in total compensation, with about 75% of that from their base salaries. Post-MBA and graduate-level hires earn in the middle-to-high-end of that range, and possibly slightly above it.

Issuer-paid research is not cheap for smaller firms that don't have the budgets of large-cap companies and are directing much of their financial resources to growing the business. Coverage can cost around $45,000 per year. But this has to be looked at from the perspective of the return.

Sell side equity research makes money indirectly, primarily through commissions generated when the buy side trades through the sell side trading desks. You see, research is one (very important, I might add) part of a three-part team that also includes sales and trading.

Cons of Equity Research

If your company is going through a lot of corporate events or a period of turbulence, you may need to spend more time writing updates and liaising with investors. Your life can be unpredictable in equity research as you have to be highly reactive to news.

Although spending on equity research analysts has significantly declined in recent years, institutions may also pay for the sell-side research they receive (either with dollars or by giving the supplying brokerage firm trades to execute).

The type of person who's suited to equity research is someone who enjoys writing, routine, financial analysis, and is introverted.

JPMorgan Chase & Co. is proposing to charge as little as $10,000 a year for equity research, the lowest price to emerge so far, as the Wall Street giant seeks to grab market share when a European ban on free analysis for clients is imposed, two people with knowledge of the matter said.

Which bank is best for equity research? ›

NEW YORK, NY – BofA Global Research has placed No. 1 in Institutional Investor's 2023 global ranking of the top equity research providers, earning 182 total team positions across II's 2023 equity team surveys. This is the latest in a series of top accolades the firm received in 2023, including achieving No.

Mutual funds, hedge funds, and others that manage their clients' money and invest on their behalf, known as the buy-side, also employ equity research analysts, who make investment recommendations to their portfolio managers.

Minimum 3.0 GPA. You have basic knowledge of and a keen interest in finance.

Getting a job in equity research can be extremely competitive. Global investment banks and boutique firms only have so many Analysts and Associates, with a limited number of new people they hire each year.

Most equity research analysts begin in entry-level research associate positions after completing bachelor's degree programs.

What is Equity Valuation? Equity valuation is a blanket term and is used to refer to all tools and techniques used by investors to find out the true value of a company's equity. It is often seen as the most crucial element of a successful investment decision.

What is Equity Research? Equity research professionals are responsible for producing analyses, recommendations, and reports on investment opportunities that investment banks, institutions, or their clients may be interested in.

Equity value, commonly referred to as the market value of equity or market capitalization, can be defined as the total value of the company that is attributable to equity investors. It is calculated by multiplying a company's share price by its number of shares outstanding.

The equity method is a method of accounting whereby the investment is initially recognised at cost and adjusted thereafter for the post-acquisition change in the investor's share of the investee's net assets.