Valuation modeling support for a US-based brokerage firm

About Client:

A US-based mid-sizes brokerage & trading firm was seeking a valuation modeling support for its research coverage to align their bandwidth to focus on new idea generation and commission generation.

ValueAdd Solution:

DCF, Relative Valuation models:

  • Maintained valuation models updated for quarterly results, corporate actions, and corporate news
  • The models had 10-year historical and 5-year (with 8 quarters) independent projections

Efficient model updates:

  • Regular updates for earnings, corporate actions, and news releases
  • Quick earning blurb in 15 mins after the interim result announcements
  • Listen to earning conference call or read transcripts, and update the interim numbers
  • Write to Investor Relations to seek clarity

Sector screens:

  • Had developed screens based on quantitative parameters to funnel new ideas
  • Prepared tearsheets for shortlisting investible ideas

Benefits Delivered:

  • Saved ~US$40,000/year through offshoring
  • Senior analysts could focus on more value-added work
  • Client built an efficient research distribution platform for effective research delivery to his clients
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